Employers in Indonesia told to pay full Eid Al-Fitr allowance
Organisations in Indonesia have been reminded to pay their employees their full Eid Al-Fitr allowance (THR) no later than seven days before the holiday, which is expected to fall on 22 April 2023. Eid Al-Fitr, or the Festival of Sweets, marks the end of the month-long dawn-to-sunset fasting of Ramadan, the ninth month of the Islamic calendar.
All employees who meet the legal requirements, including those with Permanent Employment Contracts (PKWTT), Temporary Employment Contracts (PKWT), and freelance workers, are eligible for the allowance. Those who have worked for 12 months or more will receive one month’s wages, while those who have worked less than 12 months will receive a proportional amount based on the number of months worked, multiplied by one month’s wages and divided by 12.
Organisations are also allowed to provide the THR at a higher amount than the government’s provision. Export-oriented labour-intensive industrial organisations, which implemented the working hour and wage adjustment as stipulated in the Regulation of Manpower Minister Number 5 of 2023, are also required to pay the 2023 Eid allowance.
Manpower Minister Ida Fauziyah has asked all governors to ensure that organisations in their regions disburse the THR before 15 April 2023, in accordance with regulations.