Entrepreneurs Reveal THR Private Employees Will Disburse According To Provisions

JAKARTA - The Indonesian Employers' Association (Apindo) said that the provisions for payment of holiday allowances (THR) for private employees will be given no later than seven days before Eid al-Fitr or in accordance with applicable regulations.

Apindo Chairman Shinta W. Kamdani said the provision was based on the rules of the Ministry of Manpower (Kemenaker) and in accordance with the company's Collective Work Agreement (PKB).

"We will continue to support these regulations, we have also appealed to entrepreneurs to follow according to existing regulations," he said when met on the Indonesia Stock Exchange, Wednesday, March 14, 2024.

Shinta hopes that all private companies can follow government regulations and if there are obstacles, they are expected to report this.

"Hopefully everything can be implemented and of course the companies with obstacles must report it, but until now we hope the company can follow according to the rules," he said.

For information, the payment regulation for Religious THR is regulated in Article 9 in Government Regulation (PP) Number 36 of 2021 concerning Wages and Regulation of the Minister of Manpower Number 6 of 2016 concerning Religious Holiday Allowances for Workers/Laborers in Companies.

In addition, the provision of THR is also regulated in the Regulation of the Minister of Manpower (Permenaker) Number 6 of 2016 concerning Religious THR for Workers/Labourers in Companies, Religious THR is non-wage income that must be paid by employers to workers/laborers ahead of Religious Holidays.

Based on the Permenaker, workers/laborers who have a working period of 1 month are entitled to a Religious THR from the company. Workers/laborers who work 12 months continuously or more get THR of one month of wages.

Meanwhile, workers/laborers who work for a minimum of 1 month continuously but less than 12 months are given a proportional THR, by calculating the number of working periods divided by 12 (twelve) months multiplied by one month of wages.

However, for companies that have regulated the payment of religious THR in work agreements, company regulations (PP), or collective work agreements (PKB) and it turns out to be better and bigger than the above provisions, the THR paid to workers/laborers must be carried out based on the PP or PKB.