Employers in Indonesia told to pay overtime for work done on holidays

“Article 187 of the Job Creation Law states that entrepreneurs and employers, who do not pay overtime wages on official holidays (article 85, paragraph 3), are subject to a criminal sanction of imprisonment for a minimum of one month and a maximum of 12 months and/or a fine of at least Rp100 million,” Director General of Supervision, Manpower, and Occupational Safety and Health at the Ministry of Manpower Haiyani Rumondang said in a written statement recently.

The obligation to pay overtime wages was stipulated in Article 78, paragraph 2 of Law No. 11 of 2020 on job creation and in Article 29, paragraph 2 of PP No. 35 of 2021 regarding certain time employee agreement (PKWT), outsourcing, work time, rest time, and layoffs, she said.

Her statement stressed that entrepreneurs or employers who employ workers on the first and second days of Eid al-Fitr or on collective leaves and national holidays set by the government are obligated to pay overtime wages in accordance with applicable regulations.

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Employers who do not pay overtime wages to such workers are liable to face strict sanctions, including a minimum imprisonment of one month and a maximum of 12 years and/or they can be fined a minimum of Rp10 million (US$700) and a maximum of Rp100 million (US$7,000), according to Antara.