Xmas, Idul Fitri allowance a must: Deputy governor
Xmas, Idul Fitri allowance a must: Deputy governor
JAKARTA (JP): Deputy Governor of People's Welfare Affairs
Djailani has encouraged all companies operating here to pay this
year's Christmas or Idul Fitri bonuses to their employees
regardless of the business climate.
"We can fully understand that many companies have been badly
hit by the economic crisis which might cause difficulties in even
running their businesses, let alone paying the annual holiday
bonus," he said on Thursday.
"But we hope employers can still fulfill their obligation.
"People are now under great difficulties due to various
crises, so let them enjoy a little happiness during the
celebration."
According to Djailani, companies which cannot provide full
bonuses as obliged would not be in violation of any regulation.
"It's tolerable," he said.
Based on a Ministry of Manpower 1994 decree on religious
holiday bonuses, employers are obliged to pay such bonuses to
employees who have been in their employ for three consecutive
months or more. An employee is entitled to either a Christmas or
Idul Fitri bonus depending upon religion affiliation.
According to the decree, the minimum bonus for workers
employed for 12 months or more should equal one-month basic
salary plus other standard allowances.
Workers employed for less than 12 months are entitled to a
bonus proportional to the length of employment, it states.
When asked to comment on the possibility of entrepreneurs
refusing to meet Djailani's call, the head of the labor division
of the Jakarta Legal Aid Institute (LBH Jakarta), Surya Tjandra,
said that such action could be categorized as a crime.
He acknowledged that violators of the regulation would face
only light punishment. The maximum penalty, he said, is three
months in jail or a Rp 100,000 fine.
However, employees could sue companies which fail to pay
bonuses, he said.
But judging by LBH Jakarta's experience, addressing such
complaints usually met difficulties, Surya added.
Giving no explanation on the difficulties, he said less than
one-fifth of 22 cases involving bonus disputes handled by his
office since December last year ended successfully.
Moreover, companies now have an valid reason -- the prolonged
economic crisis -- to elude their obligation.
"What is there to argue about if they say they've been badly
hit by the crisis?" Surya asked.
Referring to the ministry's decree, Surya said companies which
were unable to pay bonuses could apply for exemption to the
ministry two months prior to the religious holidays.
But councilor Nitra Arsyad from Commission E for social
welfare said it would be deplorable if companies refused to pay
the once-in-a-year bonus.
"It could prove that the companies' just want to share their
difficulties with their employees, but not the times when they
reap big profits," he said.
"Company managements should be aware that employees are their
valuable assets," he said.
A 23-year-old cleaner at City Hall, Rina, said she had no
great hope of receiving an Idul Fitri bonus this year.
"Being still employed by my company is already a lot, much
better for me," said the cleaner whose salary is Rp 150,000
(US$20) per month.
Rina said most of her colleagues shared her opinion. (ind)