Employers ordered to pay Religious Festivity Allowance 7 days before Eid al-Fitr

Payment, however, is subject to varying conditions

Employers ordered to pay Religious Festivity Allowance 7 days before Eid al-Fitr

Indonesia's Ministry of Manpower has ordered employers to pay their workers with their Religious Festivity Allowance (THR) Payment no less than seven days prior to Eid al-Fitr.

In a circular issued early this month, Manpower Minister Ida Fauziyah said that providing Religious Festivity Allowance is an "obligation employers must carry out to their workers."

The THR must be paid to employees who have been working for a company continuously in a month or more, as well as workers who render service based on a work agreement for an unspecified period or a fixed-term work arrangement.

Employees who have been service for a month, but less than a year, should be given THR equivalent to the calculated total working period divided by 12 months and multiplied by one month's salary.

Those working for over 12 months, on the other hand, will be given an equivalent to one month's salary, according to a ministry release.

"For workers/labourers who work based on a daily work agreement and have worked for 12 months or more, one month's salary is calculated based on the average wages received during the last 12 months prior to religious holidays," read the ministry's announcement.

"For workers/labourers who work based on a daily work agreement and have worked for less than 12 months, one month's salary is calculated based on the average wages received each month during the working period," it added.

"For workers/labourers whose salary is determined based on output, one month's salary is calculated based on the average wages received during the last 12 months prior to religious holidays."

For companies, however, that have been stipulating the amount of THR in a work agreement and have been providing them with a higher amount, the ministry said the THR given to employees will depend on what the company is providing according to their work agreement or prevailing practice.

The ministry's circular, which addressed governors, urged the officials to push employers in their respective regions to pay the THR in compliance with the laws and regulations.

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West Java

In West Java, Governor M. Ridwan Kamil has urged employers to not delay the distribution of 2022 Eid al-Fitr allowance to employees, and to refrain from handing them out in instalments.

Kamil, as reported by Antara, appealed to employers to pay their employees the allowance as soon as possible so it can be used for buying their necessities.

According to Antara's report, the Indonesian Employers Association (Apindo) has already assured that their members will implement the 2022 THR on time.

"I see that all member companies of Apindo, especially West Java Apindo, are optimistic that they can pay the THR in full, not in instalments, and clearly, it will be paid on time," said West Java Apindo chairperson Ning Wahyu Astutik in a statement quoted by Antara.

"It almost can be confirmed that 99.9% of companies that are members of West Java Apindo will pay THR on time and in full," the chair affirmed.

The Eid al-Fitr is expected to take place starting the evening of May 2 until the evening of May 3, and the circular said a command post will be established in each province to prepare for complaints during the implementation of THR payment.