Sat, 22 Oct 2005

Employers urged to pay Idul Fitri bonuses

Wahyoe Boediwardhana, The Jakarta Post/Malang

The Malang regency government issued a circular on Friday reminding businesses to give employees their Idul Fitri bonuses.

According to regulations, all employees who have been with a company for at least three months in a row during the current calendar year are entitled to an Idul Fitri bonus.

"The amount of the bonus differs among employees depending on how long they have been with a company," said Malang Regent Sujud Pribadi in the circular.

The bonus must be paid before the Idul Fitri holiday in early November.

The circulars were sent to some 668 factories operating in Malang, including cigarette, beverage, chemical and textile factories.

Sutrisno, an official at the regency manpower office, said he had not received any complaints from businesses about the circular.

Textile company PT Lie As went bankrupt a week ago but the owner said the company would pay workers their Idul Fitri bonuses.

One business leader said companies in Malang had no objections to the circular and were ready and willing to pay Idul Fitri bonuses.

Besides cash bonuses, many companies, especially the larger ones, also give employees gifts for the holiday, including shirts and sarongs, said Samuel Malindo, deputy chairman of the Malang Employers Association.

"Employers consider the bonus an annual tradition and they do their best to pay the bonuses," said Samuel.

Circulars such as this one are routinely issued by regional governments as Idul Fitri or Christmas draw near. Though the law requires companies to pay holiday bonuses, in the past firms have refused on the grounds of a slowdown in business.