Disputes over tax settled

Disputes over tax settled

JAKARTA (JP): Labor disputes between workers and management in two garment companies in Cimanggis, Bogor, over confusion on the deduction of income taxes from the workers' salaries, have been settled under government mediation.

Director for labor standards from the Manpower Ministry, Tjepy F. Aloewie, told reporters on Monday that the situation in the two factories has returned to normal and the approximately 7,000 workers, who went on strike last week, have returned to work.

He said the disputes were settled after a joint team of the Ministry of Manpower and the Ministry of Finance went to the factories to check the issue and give an explanation on income tax payments to the workers.

He said the workers went on strike because they feared that management would deduct the income tax from their monthly salaries.

The workers decided to return to work after they learned that the tax plan applies only to workers whose salaries reach the minimum taxable income of Rp 2.4 million per year for an unmarried worker and Rp 2.8 million per year for a married worker, without children. (rms)