Indonesia’s Ministry of Manpower is currently addressing a significant number of worker complaints related to the timely and full payment of Tunjangan Hari Raya (THR), or Eid al-Fitr allowance, a mandatory bonus paid to employees ahead of the major Islamic holiday. As of March 25, 2026, the ministry reports it has resolved 173 cases, but a substantial 1,461 complaints remain under review. The surge in complaints underscores ongoing challenges in ensuring employers adhere to labor regulations, particularly as Eid al-Fitr approaches, a period of heightened financial expectation for Indonesian families.
The Eid allowance is a deeply ingrained tradition in Indonesia, and legally mandated for all employees. The regulation, designed to help workers cover expenses associated with the holiday, requires employers to distribute the THR no later than seven days before Eid. However, enforcement remains a key issue, with disputes arising from both employer non-compliance and genuine financial difficulties experienced by companies. This year’s volume of complaints, reaching 2,443 since the opening of the THR Command Post, is slightly higher than the 2,415 received during the same period in 2025, indicating a persistent problem.
Ministerial Response and Increased Oversight
Manpower Minister Yassierli has directed governors across Indonesia to prioritize the investigation of all submitted complaints. In an official statement released Sunday, March 29, 2026, Yassierli emphasized the need for swift action. “I ask governors to immediately deploy labor inspectors to examine every report received, both through the Ministry of Manpower’s THR Command Post and local labor offices,” the minister stated. This directive aims to expedite the resolution process and ensure workers receive their legally entitled benefits before the holiday.
To support this effort, the ministry has already issued 200 performance inspection reports, seven inspection notes, and four official recommendations based on the complaints received up to March 25. Deputy Manpower Minister Afriansyah Noor revealed that an additional 102 new complaints were filed between March 21 and March 25, further highlighting the ongoing influx of concerns. The ministry’s proactive approach signals a commitment to addressing these issues, but the sheer volume of cases presents a logistical challenge.
Financial Strain and Compliance Concerns
According to Afriansyah, the recurring nature of these disputes stems from a combination of employer non-compliance and legitimate financial constraints faced by businesses. He cautioned that potential layoffs following Eid could further exacerbate the situation, leading to an increase in THR-related complaints. “The THR issues are a combination of compliance and financial problems,” Afriansyah explained. “Our prediction is that complaints or issues regarding THR will never be fully resolved.”
The legal framework surrounding THR payments is clear. Indonesian law mandates full and timely payment, prohibiting installment plans. Employers failing to meet the deadline face a penalty of 5 percent of the total amount owed, as stipulated in Manpower Ministerial Regulation No. 6 of 2016. However, this fine does not absolve employers of their obligation to pay the full allowance. More severe administrative sanctions, outlined in Government Regulation No. 36 of 2021 on Wages, include written warnings, restrictions on business activities, temporary suspension of operations, or even a complete freeze on business operations.
Industry Perspective and the Need for Dialogue
Bob Azam, chairman of the manpower division at the Indonesian Employers Association (Apindo), echoed the sentiment that both compliance issues and financial difficulties contribute to the annual controversy. “The THR issues are a combination of compliance and financial problems,” Azam stated. He noted that while THR payments are widely practiced, even within the informal sector, some employers struggle with cash flow, hindering their ability to comply. Azam stressed the importance of stronger bipartite dialogue between employers and workers as a preventative measure. “It may look trivial, but What we have is the basic foundation of a healthy industrial relationship,” he said.
Despite acknowledging the financial pressures some companies face, Afriansyah affirmed the government’s commitment to enforcing THR regulations. “Companies that do not comply with the payment requests we issue will face administrative sanctions and fines,” he stated, signaling a firm stance against non-compliance. This commitment aims to protect workers’ rights and ensure they receive the benefits they are legally entitled to during the Eid al-Fitr celebration.
The Ministry of Manpower continues to monitor the situation closely, with ongoing efforts to resolve outstanding complaints and prevent further disputes. Workers experiencing issues with their THR payments are encouraged to submit complaints through the ministry’s THR Command Post or local labor offices. The government’s response underscores the importance of the Eid allowance in Indonesian culture and the commitment to upholding labor rights during this significant holiday period.
Looking ahead, the Ministry of Manpower will continue to assess the impact of the implemented measures and address any emerging challenges. Further updates on the resolution of complaints and enforcement actions are expected in the days leading up to Eid al-Fitr. For the latest information and resources, individuals are encouraged to consult the Ministry of Manpower’s official website.
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