Labour Minister reaffirms mandatory Eid bonus payment deadline seven days before Eid al-Fitr

Failure to pay the Eid bonus will result in sanctions

Jakarta (ANTARA) - Minister of Manpower, Yassierli, stated that the provision of Eid bonuses (THR) from companies to employees still refers to the old regulations, which stipulate that it must be paid no later than seven days before Eid al-Fitr (H-7).

“According to the regulations, it must be paid by H-7,” said Yassierli during a press conference in Jakarta on Wednesday.

Furthermore, he said that the Ministry of Manpower is currently coordinating with the Ministry of State Secretariat regarding the announcement of a circular letter concerning the implementation of THR payments for employees.

“We will wait for the announcement, we are currently coordinating with the Ministry of State Secretariat, and it will be announced jointly,” said Minister Yassierli.

The Professor from the Bandung Institute of Technology (ITB) emphasised that providing THR to employees is a company’s obligation.

Yassierli reiterated that providing THR is an obligation that companies must fulfil for their employees.

This is in accordance with Government Regulation Number 36 of 2021 and the Minister of Manpower Regulation (Permenaker) Number 6 of 2016, which regulates wage policies in Indonesia and concerns religious holiday bonuses for employees in companies.

Article 2, Paragraph (1) of Permenaker Number 6 of 2016 states that employers are obliged to provide religious THR to employees who have worked continuously for at least one month or more.

“Regarding THR, there are already regulations in place. Failure to pay the THR will certainly result in sanctions,” said Minister Yassierli.

Previously, the Confederation of Indonesian Trade Unions (KSPI) proposed that THR payments be made 21 days before Eid al-Fitr.

KSPI President Said Iqbal, in Jakarta on Tuesday (24 February), said that this was to reduce the room for manipulation by companies that intend to carry out unilateral layoffs before Eid in order to avoid the obligation of providing THR.

“THR must be paid three weeks before Eid. And wages for one month before Eid must also be paid in full. Do not give employers the opportunity to manipulate the status of employees,” he said.