Indonesia union group urges for full payment for Eid allowances

Confederation of Indonesian Workers Unions (KSPI) president Said Iqbal has called for companies to make mandatory full payment for Eid allowances.
By: | April 14, 2021

Said added that companies must show proof that they have made losses if they opt to pay the Tunjangan Hari Raya (THR) or Eid allowances in installments. 

“(We) reject the THR payment in installments even though the National Tripartite agreement to be recommended to the labour minister, has been circulated on the social media with one of the contents that I read says it would hand it over to the bipartite if companies are unable to pay THR,” said the KSPI president at a virtual press conference. 

Said’s comments came after the recommendation from the discussion of the National Wage Council work team and the National Tripartite Worker Body regarding the 2021 THR which will be submitted to the labour minister Ida Fauziyah. 

He said if a company cannot pay the THR in full, it must be transparent and show that it has made financial losses over the past two years. 

Earlier, Fauziyah had said that the National Wage Council and the National Tripartite Committee were still discussing the scheme for granting THR 2021. 

“We will listen to reports from the National Wage Council Work Team and the National Tripartite Worker Agency. After that, a provision will be issued through a circular regarding the THR,” said Fauziyah. 

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She also said that, according to local law, companies are obliged to give THR payment to their employees.  

THR payments are intended to boost public consumption during the month of Ramadan which started on April 13 in Indonesia this year, and the Eid al-Fitr religious holiday in May, according to Tempo.