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THR for Employees Must be Paid in Full

THR paid full
Manpower Minister: THR for Employees Must be Paid in Full

The Manpower Minister Ida Fauziah has asked employers to pay full holiday allowances (THR) to workers and labourers. Further, THR must also be given on time with no deferrals allowed.

According to Ida, the government has provided support to entrepreneurs to overcome the impact of COVID-19 so that the economy can keep moving. The ministry had held discussions with the national tripartite and the National Wage Council and undertook intense communications with stakeholders, employers, and labour unions in an agreement on THR for 2021.

“The ministry will create a 2021 THR Implementation Task Force at the central level and can be followed by the regions so that the provision of THR is effective. The involvement of the local government to encourage and implement government policy is very important to maintain a conducive situation due to the impact of COVID-19,” said Ida.

“In 2020, we gave concessions to companies that couldn’t afford the THR within the stipulated time to carry out a dialogue between employers and workers who were able to agree on receiving THR in stages at that time. During that time, the consideration was business continuity. The community activities have improved, although limited, but are heading towards economic recovery,” she continued.

Therefore, Ida emphasised that on this basis, the Manpower Ministry needs to explain that the THR is non-wage income that must be paid by employers to workers or labourers no later than seven days before Eid Al-Fitr’ arrives.

“We ask for regional cooperation to ensure that employers pay THR to workers according to the law and oblige employers who are not able to pay THR to carry out a dialogue with workers, to arrive at an agreement made in writing, with the condition that it is paid at the latest the day before the THR,” she added.

Also Read Understanding the Religious Holiday Allowance THR in Indonesia

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