Menaker Ida's Relief For Companies Having Difficulties In Paying THR

Minister of Labor Ida Fauziah (doc. BNPB)

JAKARTA - The Minister of Manpower, Ida Fauziah, has issued an Edara (SE) regarding the provision of religious holiday allowances (THR) for companies in the midst of the COVID-19 pandemic. In the letter, Minister Ida allowed companies experiencing difficulties and being affected by COVID-19 to pay in installments or postpone the THR.

The Circular Letter numbered M / 6 / HI.00.01 / V / 2020 concerning the Implementation of 2020 Religious Holiday Allowances in Companies During the Corona Virus Desease 2019 (COVID-19) Pandemic. Menaker Ida said, considering the needs of workers / laborers for the payment of religious holiday allowances (THR), it is necessary to have a common understanding between workers / laborers.

"Asking the governor to ensure that companies pay religious THR to workers / laborers in accordance with statutory provisions," wrote Menaker Ida in a letter of agreement received by VOI, Saturday, May 8.

In the preparation of this religious THR circular, the Ministry of Manpower has held several dialogues with entrepreneurs who are members of the Indonesian employers' association (Apindo) and with labor unions.

He explained, this THR circular letter had also been discussed and became an agreement with the National Tripartite Cooperation Institute (LKS Tripnas) in the LKS Tripnas plenary session, namely point 2 which states that the preparation of the THR implementation takes into account the economic conditions due to the COVID-19 pandemic by adding a financial report. company.

In addition, in order to maximize the implementation of the provision of religious THR in 2020, Ida hopes that the governor will establish command posts (Posko) in each province by paying attention to health procedures / protocols to prevent transmission of the COVID-19 virus.

THR Payment Rules for Unable to Pay Companies

The SE also explains, companies that are unable to pay THR in a timely manner, need to carry out a dialogue first in order to reach an agreement with their workers.

The government provides two options for companies that are unable to pay THR to their workers. First, THR payments in stages for companies that are unable to pay in full.

Then, secondly, companies that are unable to pay THR at all are allowed to postpone payments until the agreed time.

This Circular Letter also emphasizes that the agreement regarding the time and method of payment of religious THR and fines does not eliminate the obligation of employers to pay THR and fines to workers or laborers, with the amount according to the provisions of legislation, and to be paid in 2020.

"The agreement between employers and workers / laborers as referred to in number 2 is reported by the company to the agency that administers government affairs in the local manpower sector," the SE wrote.