Good News, Wage Subsidy Is Coming Again! Sri Mulyani Prepares Rp8.8 Trillion For 8.8 Million Workers

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani responded to the request of the Minister of Manpower Ida Fauziyah to distribute wage subsidies to workers who were more deeply affected by the pandemic due to the implementation of the current Emergency Community Activity Restrictions (PPKM).

This response is evidenced by the provision of a budget of Rp8.8 trillion. This amount will later be given to 8.8 million workers with a value of Rp1 million for two months in one payment, which is Rp500,000 each.

"This assistance will target non-critical sector workers in PPKM level 4 areas with a maximum wage income of IDR 3.5 million per month and have become members of BPJS Employment," he said in a virtual press conference regarding the follow-up to the direction of the Indonesian President regarding the latest developments in the implementation of PPKM, Wednesday, July 21.

The Minister of Finance added that the wage subsidy budget or often called the salary subsidy will be given to workers with special conditions, namely that employers are not allowed to terminate employment (PHK) for their employees.

"The record is that the company did not lay off workers. So this program prevents layoffs from happening," he said.

In fact, the government provides funds of Rp10 trillion for this wage subsidy program. However, this amount is not used entirely in the form of the distribution of wage subsidies. Only Rp8.8 trillion was channeled directly to workers who were still registered as employees.

Meanwhile, the remaining Rp1.2 trillion will be included in the Pre-Employment Card Program as a cushion for workers who cannot avoid termination of employment.

To note, the wage subsidy or often called the salary subsidy is included in the 2021 National Economic Recovery (PEN) scheme for the social protection program sub-sector (Perlinsos) which is budgeted at Rp187.84 trillion for this year.

Meanwhile, the realization of social security policies until July 16, 2021, was recorded at Rp82.22 trillion, or 43.8 percent of the provided budget ceiling.

Social protection programs include basic food assistance (staple food cards), cash social assistance (BST), village cash transfers (BLT), internet quota assistance for students, and electricity subsidies.