Indonesian Political, Business & Finance News

Labour Minister urges industries to comply with festive allowance provisions

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Labour Minister urges industries to comply with festive allowance provisions
Image: ANTARA_ID

Jakarta — Indonesia’s Minister of Manpower, Yassierli, has called upon all industries to comply with the provisions requiring the payment of festive allowances to workers and festive bonuses to ride-hailing and courier workers.

This follows ministerial circulars issued to regulate the implementation of the 2026 festive allowances (THR) for workers and employees in companies, as well as the 2026 festive bonuses (BHR) for drivers and couriers operating through application-based transport services.

“The government appeals to all industries to comply with these directives. This applies to festive bonuses for ride-hailing workers. The President has also issued circulars that we encourage to be followed,” Yassierli stated when confirmed by ANTARA in Jakarta on Thursday.

Under Government Regulation Number 36 of 2021 on Wages and Ministry of Manpower Regulation Number 6 of 2016 on Festive Allowances for Workers and Employees, employers are legally obligated to provide festive allowances to workers.

The nominal amount of festive allowances must be provided according to the amounts stipulated in existing regulations and may not be paid in instalments.

Festive allowances must be paid no later than seven days before the festive holiday, although companies are encouraged to pay them ahead of this deadline.

Regarding festive bonuses for ride-hailing and courier workers, these are provided by application-based companies to drivers and couriers who are officially registered with the company during the past 12 months.

The festive bonus is provided in cash at a minimum of 25 per cent of the average net income earned over the past 12 months.

“Application-based companies must be transparent in calculating the festive bonus amounts for drivers and courier workers,” Yassierli said.

Like the payment of worker allowances, festive bonuses for ride-hailing and courier workers must be paid no later than seven days before the Islamic holiday of Eid al-Fitr 1447 Hijri.

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