TEMPO Interactive, Jakarta: President Susilo Bambang Yudhoyono has called Manpower Minister Erman Suparno to report on progress regarding the preparations of the Draft Governmental Regulation on guaranteed severance pay.
Erman has said that the draft is still being discussed.
“The guarantee is still being discussed by the association of entrepreneurs and workers' unions,” he told reporters on Thursday (04/11) at the Presidential Office in Jakarta.
According to Erman, discharged workers will be offered severance pay.
What is different from the current method is that the severance pay will be paid by an insurance company instead of the company where the worker was employed.
However, the company must pay premiums to the insurance company.
The government will choose PT Jamsostek and another insurance company for the guarantees.
Jamsostek will only provide half of the social guarantee for workers, which includes health, accident, death and old age allowances.
“Jamsostek will increase its program for laying off guaranteed,” said Erman.
The provision will be attached in the regulation under preparation.