Be Careful! Not Paying THR Can Make Companies Frozen

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - Minister of Manpower (Menaker) Ida Fauziyah emphasized that entrepreneurs who do not pay or pay the 2023 Eid Allowance (THR) payment will be subject to sanctions.

Furthermore, Ida explained that the imposition of sanctions on companies would refer to Government Regulation (PP) Number 36 of 2021 concerning Wages.

Where, in the regulation, the heaviest sanctions for companies that do not comply with applicable regulations related to THR payments will be frozen.

"The imposition of sanctions is in the form of a written warning, restrictions on business activities, temporary suspension or part of the production equipment to freezing business activities," he said.

Therefore, Ida hopes that no company will be subject to sanctions for not paying or paying THR installments to its workers or laborers.

"We all hope that of course there will not be (the imposition of sanctions). We ask companies to comply with existing regulations," he said.

Ida said, the government through the Ministry of Manpower has set the official rules for giving THR, where employers are required to give THR Lebaran 2023 a maximum of D-7 and should not be paid in installments.

This is stated in the circular letter (SE) M/2/HK.0400//III/2023 concerning the Implementation of Religious THR 2023 for Workers/Laborers in Companies.

"It is mandatory to pay it no later than seven days before Religious Holidays. This Religious THR must be paid in full, not in installments. I ask the company to obey this regulation," he said.

Currently, said Ida, there is no longer any reason for companies to pay THR in installments or not to pay it.

"With Indonesia's current economic condition that has improved again, of course there is no longer a story that companies don't pay THR," he said.