- Through the issuance of Circular of the Minister of Manpower No. M/6/HK.04/IV/2021 on the Implementation of the Granting of the 2021 Religious-Holiday Allowance (“Circular 6/2021”), the National Wage Council (Dewan Pengupahan Nasional – “DPN”) is expecting employers to comply with the provisions set out in Circular 6/2021 and thus complete payments of the religious holiday allowance (Tunjangan Hari Raya – “THR”) to their employees.
- In terms of any employers who are still struggling from the effects of the ongoing COVID-19 pandemic, Vice-Chairman of the DPN, Mr. Adi Mahfudz Wuhadji, is urging said employers to prioritize communications and mediation with their employees in order to hopefully reach an agreement regarding their THR payments. However, it should be noted that Circular 6/2021 does not allow for such agreements to extend THR payments beyond h-1 of the relevant employee’s holiday.
- On a similar note, the Minister of Manpower also issued a statement recently affirming that the decision to require employers to pay THR this year has already taken Indonesia’s economic climate into consideration, as several incentives and stimulus packages have already been rolled out by the government. (ANT)
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