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Government Now Requires Employers to Pay THR Before Eid

Government Now Requires Employers to Pay THR Before Eid

The Manpower Minister, Ida Fauziah, has said she still requires employers to pay the religious day allowance (THR) for their workers on time.

Payment must be made at least seven days before Idul Fitr for employers to fulfil their obligation.

“Religious THR is a non-wage income that must be paid by employers to workers or labourers, at least seven days before the religious holidays,” she said in a statement issued from Jakarta.

The rules relating to religious THR are written in the regulation of the Ministry of Manpower No. 6 of 2016 concerning religious day allowance for workers or labourers in a company. This regulation is a rule derived from the government regulation of Indonesia number 78 year 2015 on wages.

Also Read: Understanding the Religious Holiday Allowance THR in Indonesia

In this rule, companies that pay the THR late will be subject to a fine of 5 percent of the payment. This fine is, in turn, used for worker welfare. The paying of fines does not necessarily eliminate the obligation of employers to pay THR to workers as well.

“Businesspeople who do not pay THR can be subject to administrative sanctions until the termination of part of the business,” she explained.

Source: CNN Indonesia

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