Indonesian Political, Business & Finance News

House of Representatives Urges Employers to Pay Holiday Allowance Two Weeks Before Lebaran

| Source: VIVA Translated from Indonesian | Social Policy
House of Representatives Urges Employers to Pay Holiday Allowance Two Weeks Before Lebaran
Image: VIVA

Member of Commission IX of the House of Representatives (DPR RI), Edy Wuryanto, has proposed that the payment of religious holiday allowance (THR) for workers be made no later than 14 days — two weeks — before Eid al-Fitr 2026.

Edy conveyed the proposal in Jakarta on Tuesday, arguing that earlier payment would support the smooth flow of the annual homecoming exodus (mudik), stimulate economic circulation, and allow sufficient time for law enforcement action should companies commit violations.

“Earlier THR payment provides time for law enforcement action in the event of violations,” said Edy.

The proposal was made in response to the government’s appeal to private companies to implement a Work From Anywhere (WFA) policy on 16–17 March and 25–27 March 2026, in the periods surrounding Lebaran. According to him, the current THR payment scheme, which still refers to a seven-day deadline before the holiday, risks undermining the effectiveness of that policy.

He argued that if THR were paid earlier, workers would have sufficient time to arrange their homecoming travel and prepare for holiday necessities. Moreover, earlier disbursement is considered beneficial in helping workers shop before the typical surge in staple goods prices ahead of Lebaran.

Edy also highlighted that some companies had failed to meet their THR payment obligations on time in previous years. As a result, dispute resolution was often only carried out after Eid al-Fitr, by which time workers had already felt the impact.

He therefore reminded employers to comply with THR payment provisions in accordance with prevailing regulations. THR, he said, is not a new policy and has long been a routine obligation that every company must budget for.

“THR is not a new policy. It is a long-standing policy and every company already budgets for it. The earlier it is paid, the better it is for both workers and economic circulation,” he said.

He also stressed the importance of effective labour oversight. With the relatively long Lebaran holiday period, supervision risks being hampered if reports are filed during the collective leave period.

“Labour inspectors in the regions also observe the holiday period. If violation reports come in, the time available becomes very limited,” he said.

In line with this, the legislator from the Central Java III electoral district urged the Ministry of Manpower to revise Minister of Manpower Regulation Number 6 of 2016, which currently stipulates that THR must be paid no later than seven days before Lebaran.

“Not seven days but 14 days before Eid al-Fitr,” said Edy.

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