Compensation Of The Latest PKWT, Here's How To Calculate It...

PKWT compensation (Icons8 Team Image - Unsplash)

YOGYAKARTA - Managing PKWT employees is the most rational alternative for companies that have various professions that are temporary or inconsistent. The main reason is of course efficiency and flexibility, where companies are free to recruit and dismiss employees as needed.

PKWT is a work agreement that is realized by employers and workers to hold work relationships for a certain period of time. In other words, PKWT is the same as a work contract that is regulated by the time span or the end of certain professions.

Because according to the contract period, PKWT employees are also called contract employees. Just like PKWT permanent employees, the provisions regarding PKWT contract employees are also limited by the government.

The latest PKWT employee regulation is in PP No. 35 of 2021 which is inherited from the Job Creation Law No. 11 of 2020 Chapter IV concerning Manpower. The following is a PKWT decision that you need to know.

PKWT employees cannot be employed for professions that are consistent and continuous, but only limited to certain professions, namely:

professions that are expected to be completed in the not too distant future;

seasonal projects;

professions related to new products, new activities, or additional products that are still in the testing period or exploring;

once completed project;

professions that are temporary in nature; or

professions with inconsistent nature and variety or activities.

PKWT employees who have the right to compensation money are those who already have a working period of at least 1 month continuously, and are not foreign workers (TKA) employed with PKWT.

The provision of compensation money is carried out at the end of the PKWT period. If a contract extension is carried out, then the compensation money is paid before the extension. Next, after the PKWT extension period is complete, the entrepreneur will provide compensation for contract extensions.

PKWT -> Compensation Money -> Extension of PKWT -> Hang Compensation

If one party terminates the work relationship before the completion of the specified time span in the PKWT, therefore the employer must also provide compensation money whose amount is calculated according to the PKWT time span that has been served by employees.

In the event that the profession promised is completed faster than the PKWT period, therefore the compensation money is calculated from the implementation of PKWT to the end of the profession.

How to Calculat PKWT compensation

The amount of compensation money for PKWT employees is calculated with the following formula:

PKWT compensation = working period / 12 x 1 month salary

Thus, PKWT employees who have been working for 12 months continuously have the right to compensation money of 1 month's salary.

Employees who have a working period of more than 1 month but less than 12 months get proportional or proveraged compensation of less than 1 month's salary.

Meanwhile, employees who have a working period of more than 12 months get proportional compensation money which is more than 1 month's salary.

The monthly salary made is the basis for calculating the PKWT compensation money, namely:

If the monthly salary = principal fee + fixed allowance, the basis for the calculation is the basic fee and fixed allowance.

If the salary is a month = unpaid without allowances, therefore the basis for the calculation is unpaid without allowances.

and if the salary is a month = principal fee + non-permanent allowance, therefore the basis for the calculation is the basic fee.

Especially for PKWT employees in micro and small businesses, the calculation and amount of compensation money is based on the agreement of employers and employees.

So after knowing PKWT compensation, watch other interesting news on VOI, it's time to revolutionize news!