Dear Company, Ministry Of Manpower Reminds Sanction Of Not Paying THR 7 Days Before Eid 2022

JAKARTA - The Ministry of Manpower (Kemnaker) emphasized that companies will receive fines if they are late in paying the holiday allowance (THR) which has been set seven days before Eid 2022.

This was conveyed by the Coordinator of Wage Norms, Rest Time and Social Security at the Ministry of Manpower Sri Astuti in a virtual discussion that was followed from Jakarta, Thursday 14 April.

"The government has made a policy that THR is non-wage income which is mandatory to be given by employers before religious holidays. There is a limit to this obligation, the last D-7 must be paid," he said.

In the discussion held by the Directorate of Labor Norms Inspection, Sri said that it is still possible to pay THR earlier than the minimum time limit.

However, when payments are made late, there are consequences as stated in Government Regulation Number 36 of 2021 concerning Wages.

The regulation states that entrepreneurs who are late in paying THR may be subject to a fine of five percent of the total THR that must be paid.

"Why is there an imposition of fines? The government is trying how to make entrepreneurs comply with giving rights that are already regulated in laws and regulations," he said, as reported by Antara.

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For companies that do not provide THR at all, there are sanctions starting with a written warning given by the labor inspector.

If it is still not carried out, it will continue with the limitation of business activities, freezing of activities and the last step is the temporary suspension of part or all of the production equipment.