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Government Officially Allows Entrepreneurs to Delay THR Payments

Government Officially Allows Entreprenuers to Delay THR Payments

The Manpower Minister, Ida Fauziyah, has officially allowed private companies to delay the payment of the religious day benefit, or THR, this year.

However, the payment of THR that gets postponed must still be fulfilled before the end of 2020.

This permission was given in a circular letter from the Minister of Manpower number M/6/HI. 00.01/V/2020 concerning the implementation of the religious holidays allowance year 2020, for companies in the period of the coronavirus pandemic.

“I’ve asked the governors to ensure the company pays the religious THR to workers or labourers according to the provisions of the law,” writes Ida in the letter.

Ida said that companies that are unable to pay the THR bonus at the usual time can find a solution through dialogue between employers and their workers or labourers. The dialogue process should be done in a friendly manner, based on a company’s transparent internal financial statements and good faith, in order to reach an agreement.

 “If the company is unable to pay the full THR at the time specified in accordance with the provisions of the law, then the THR payment can be done gradually if both parties agree to it,” she said.

A deal between the employer and employees will include the timeframe and method of payment for the delayed THR payment. Then, the agreement between the employer and the staff must be reported by the company to the service that conducts government affairs in the field of local employment.

“Agreement on the time and way of the THR payment does not eliminate the obligation of the company to pay the religious THR payment to workers or labourers in accordance with the provisions of the laws and regulations to be paid in the year 2020,” she explained.

Further, Ida asked the governor in each province to form a command post (Posko) for religious THR year 2020, in regards to the procedures and protocols of preventing the COVID-19 transmission.

“And give this SE to the regent or mayor and related stakeholders in each territory,” she added.

The circular letter is addressed to the governors across Indonesia. It has also been sent to the president and vice president, ministers, general chairman of the National Board of Employers Association of Indonesia (APINDO), and the leader of the Union Confederation of Workers or Trade Unions.

Previously, APINDO asked the government to allow a delay and payment in installments of THR because many companies are going through an economic crisis during the coronavirus pandemic.

Vice-Chairman of APINDO, Shinta W Kamdani, revealed this in reference to a company survey.”Some can pay full and on time. But there are also those who can not pay in full so that the option is move to the end of the year or in installments,” Shinta said.

Source: CNN Indonesia

Read Also: Understanding the Religious Holiday Allowance THR in Indonesia

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