West Sulawesi Implements Two-Month Work-From-Home for Contract Workers, Denies Holiday Allowance and 13th Month Salary
The West Sulawesi provincial government has implemented a work-from-home (WFH) policy for two months for thousands of contract employees with work agreements (PPPK) and part-time PPPK staff. The policy was adopted in response to significant fiscal pressures on the regional budget.
“Although working from home, these employees will continue to receive their monthly salaries,” said West Sulawesi Governor Suhardi Duka in Mamuju on Monday, 16 March.
The decision was made following discussions with all regional administrative bodies (OPD) led by the Regional Secretary, the governor explained.
“This policy is taken as an anticipatory measure against the region’s fiscal situation, including the potential impact of fuel price increases due to geopolitical conflicts between the United States, Israel and Iran,” Suhardi Duka stated.
Besides implementing WFH, the regional government also acknowledged its inability to meet obligations for paying holiday allowances (THR) and 13th month salaries to PPPK and part-time PPPK staff.
“We state that THR and 13th month salary for PPPK and part-time PPPK employees cannot be paid because they are not allocated in the 2026 regional budget,” Suhardi Duka said.
He added that the regional government has no fiscal space to increase budget allocation through budget amendments. Efforts to increase regional revenue were also deemed insufficient to cover the shortfall.
“After receiving a report from the Regional Revenue Agency, the plan to increase regional own-source revenue by Rp36 billion in the amended budget could not be realised,” he explained.
West Sulawesi’s fiscal situation has been further pressured by declining revenue targets from two major tax sources: fuel tax and cigarette tax.
Fuel tax revenue previously estimated at Rp140 billion has fallen to Rp103 billion. Meanwhile, cigarette tax revenue has also declined from Rp140 billion to Rp113 billion.
With these declines, total potential revenue from both tax sectors has contracted from Rp280 billion to approximately Rp216 billion, representing a shortfall of around Rp64 billion.
“Given this situation, it is nearly impossible to increase the budget in the amended budget for THR and 13th month salary for PPPK and part-time employees,” Suhardi Duka stated.
As a temporary solution, the regional government is implementing a WFH system for PPPK and part-time PPPK staff for the next two months. However, employees may still be required to report to the office at any time if needed by their OPD leadership.
“They will work from home for two months and need not come to the office, except if requested by their OPD leadership,” he said.
The policy also affects the education sector. Several civil service teachers (PNS) will take over some teaching hours previously handled by PPPK teachers and part-time PPPK instructors.
The West Sulawesi provincial government plans to conduct regular evaluations of this policy. The first evaluation is scheduled for 16 April, followed by another on 16 May 2026.
“If conditions remain the same, the WFH policy could potentially be extended,” Suhardi Duka said.
Although not receiving holiday allowances and 13th month salary, the government ensures that PPPK and part-time employees will continue to receive their monthly salaries during the WFH implementation period.