Manpower Minister: Holiday Bonuses Must be Paid in Full

Minister of Manpower Ida Fauziyah has issued Circular Number M/2/HK.04/III/2024 on Payment of 2024 Holiday Bonuses for Workers/Laborers at Companies.

The Circular signed on Friday (03/15) was addressed to all governors across the country.

Ida underscored that payment of holiday bonuses to workers/laborers is employers’ obligation and they must be paid in full at the latest seven days before the religious holiday.

“Let me reiterate that holiday bonuses must be paid in full and not in installments. I urge companies to pay attention to and comply with this provision,” she said in a press statement on Monday (03/18).

Ida pointed out that holiday bonuses are given to workers/laborers who have worked for one month or more regardless of their employment status, be it permanent workers, temporary workers, or freelance workers who meet the requirements based on prevailing regulations.

“For workers/laborers who have continuously worked for 12 months or more, they are given a holiday bonus worth one month’s wage. Meanwhile, those who have continuously worked for one month and less than 12 months are given the bonus proportionally based on the calculation of the period of work divided by 12 months multiplied by one month’s wage,” she said.

As for workers/laborers who work based on freelance contracts, Ida stated that for workers/laborers who have worked for 12 months or more, one month’s wage is calculated based on the average wage received in the past 12 months prior to the religious holiday.

Meanwhile, for workers who have worked for less than 12 months, one month’s wage is calculated based on the average wage received in their period of work.

“As for workers/laborers who receive output-based wages, the calculation of one months’ wage is based on the average wage in the last 12 months prior to the religious holiday,” Ida said.

Ida further said that for companies whose employment contracts, company regulations, collective labor agreements (CLA), or prevailing habits stipulate a better amount of holiday bonuses than that in provisions of prevailing regulations, the holiday bonuses paid to workers/laborers shall be based on the employment contracts, company regulations, CLAs, or habits.

Ida also ordered governors and their administration to take three measures to ensure that 2024 holiday bonuses are paid.

First, to make efforts so that companies in their respective provinces and regencies/cities pay holiday bonuses based on the provisions of prevailing regulations.

Second, to appeal to companies to pay holiday bonuses earlier than the payment due date.

Third, to establish a Manpower Task Force Command Post for 2024 Religious Holiday Bonus Consultation and Law Enforcement Services in their respective provinces and regencies/cities integrated on https://poskothr.kemnaker.go.id website.

“I also urge governors/regents/mayors to oversee the payment of religious holiday bonuses in their respective areas,” Ida said, adding that Ministry of Manpower has opened Religious Holiday Bonus Command Post to serve consultation for religious holiday bonus calculation and complaints regarding the matter, which can be accessed in person and online via poskothr.kemnaker.go.id, call center at 1500-630, or WhatsApp at 08119521151. (UN) (DH/MMB)