Without Relaxation, Companies Must Pay Holiday Allowance In Full Without Installment, Ministry Of Manpower: The Rules Will Be Issued This Week

JAKARTA - The Ministry of Manpower has confirmed that it will issue a circular letter (SE) regarding the 2022 Holiday Allowance (THR) in the near future. Companies are asked to follow the provisions for disbursing THR in accordance with the applicable regulations, namely the D-7 ahead of Eid Al-Fitr.

The Director-General of Industrial Relations and Social Security of the Ministry of Manpower, Indah Anggoro Putri, said this year there was no relaxation for entrepreneurs in paying THR. This means that employers are required to pay THR in full.

Furthermore, he explained that the amount of THR is given according to the length of work the employee has worked. The details of the disbursement will be regulated in the SE Menaker which will be published this week.

"This year's THR must be paid (in full). No installments and no relaxation. This week's SE Menaker circulated about the amount of THR," he told VOI, Monday, April 4.

For your information, the provisions regarding THR are regulated in Government Regulation (PP) Number 36 of 2021 concerning Wages and Minister of Manpower Regulation Number 6 of 2016 concerning Religious THR for Workers or Laborers in companies.

As for referring to the regulation, THR must be given to workers no later than seven days before religious holidays.

The Ministry of Manpower will impose sanctions on companies that violate it. The sanctions include administrative sanctions, such as written warnings and restrictions on business activities.

Then, the Ministry can also temporarily stop, part or all of the means of production. Another sanction is freezing of business activities. The imposition of sanctions on companies that violate the regulations will take effect in stages.