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)