- In a bid to maintain the economic capacity of workers/employees during the Corona Virus Disease 2019 (COVID-19) pandemic, the government has decided that it will be necessary to continue to provide government assistance in the form of salary/wage subsidies, particularly to workers/employees who work in areas that are currently subject to the ongoing restrictions on community activities. Said subsidies have now been addressed by the Minister of Manpower ("Minister"), which has issued Regulation No. 16 of 2021 on the Amendment to Regulation of the Minister No. 14 of 2021 ("Amendment"). The Amendment sets out guidelines for the granting of said government assistance.
- The Amendment has now revised the requirements for workers/employees that are eligible to enjoy government assistance in the form of salary/wage subsidies as follows: 1) Must be Indonesian citizens, as proven through residency identities; 2) Must have been active participants in the Social Security Agency for Employment (“BPJS Ketenagakerjaan”) program until June 2021; 3) Must have a maximum salary/wage amounting to Rp. 3.5 million per month; 4) Must work in areas in which Level-3 and Level-4 Enforced Community Activity Restrictions (Pemberlakuan Pembatasan Kegiatan Masyarakat/PPKM) have been imposed by the government; and 5) Must prioritize persons who work in the consumer goods industry, transportation industry or various other industries, as well as the property and real-estate sector and the trade and services sector, with the exception of education and health services, in accordance with sectoral data classifications set out by the BPJS Ketenagakerjaan. Said salary/wages that will be subsidized should be the most recent salaries/wages that were reported by businesses or employers to the BPJS Ketenagakerjaan and subsequently recorded by the program and should comprise basic wages and fixed allowances.
- Moreover, the provision of government assistance in the form of salary/wage subsidies will prioritize workers/employees who have not participated in the pre-employment card program, program keluarga harapan or the micro-enterprise productive assistance program.
- Lastly, the Amendment has now revised the government assistance that will be provided in the form of salary/wage subsidies to cash payments amounting to Rp. 500,000 per month for two months, which shall be paid immediately (previously, cash payments of Rp. 600,000/month were available for up to four months).
- The Amendment has been in force since 28 July 2021.
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