Working on Public Holidays: Does It Count as Overtime? Here Are the Rules

On national public holidays, some workers still report for duty. This raises the question: does working on a public holiday count as overtime? Citing the Ministry of Manpower’s Instagram account (@kemnaker), if workers continue to work on official public holidays, employers are obliged to pay overtime wages in accordance with the regulations. Employers who assign workers to duties on official public holidays must pay overtime wages to the relevant workers. Compensation for public holidays through overtime work on national holidays is not regulated under statutory provisions. These are the sanctions if employers fail to pay overtime money, based on Article 81 number 68 of Law No. 6 of 2023. - Imprisonment: A minimum of one month and a maximum of 12 months. - Fine: A minimum of Rp10,000,000 and a maximum of Rp100,000,000. How to Calculate Overtime Pay for Working on Public Holidays Overtime pay on public holidays has specific regulations that need to be understood. Here is the information. A. For companies implementing 7 hours/day and 40 hours/week for 6 working days in 1 week 1. Overtime pay calculation is carried out as follows. - The first to seventh hour is paid at twice the hourly wage; - The eighth hour is paid at three times the hourly wage; and - The ninth, tenth, and eleventh hours are paid at four times the hourly wage. 2. If the official public holiday falls on the shortest working day, the overtime pay calculation is carried out as follows. - The first to seventh hour is paid at twice the hourly wage; - The eighth hour is paid at three times the hourly wage; and - The ninth, tenth, and eleventh hours are paid at four times the hourly wage. B. For companies implementing 8 hours/day and 40 hours/week for 5 working days in 1 week - The first to eighth hour is paid at twice the hourly wage; - The ninth hour is paid at three times the hourly wage; and - The tenth, eleventh, and twelfth hours are paid at four times the hourly wage. C. Other provisions related to overtime pay - Overtime pay calculation is based on monthly wages. - The method to calculate hourly wages is 1/173 x monthly wage. The calculation of 1/173 is derived from 1 year having 52 weeks, working hours in 1 week being 40 hours, so 52 x 40 = 2080 ÷ 12 = 173.33. - If wage components consist of basic wage and fixed allowances, the basis for overtime pay calculation is 100% of the wage. - If wage components consist of basic wage, fixed allowances, and non-fixed allowances, and if the basic wage plus fixed allowances is less than 75% of the total wage, then the basis for overtime pay calculation is 75%.