The Ministry of Manpower (Kemnaker) emphasized that the 2023 Eid holiday allowance (THR) is paid in full to workers. Although, in the export-oriented labor-intensive industrial sector, wage adjustments are ongoing for a maximum of 25%.
The Director General for Development of Industrial Relations and Social Security for Workers at the Ministry of Manpower, Indah Anggoro Putri, said that the provision of THR was stated in the Minister of Manpower Regulation (Permenaker) Number 5 of 2023. The amount of THR that will be given to labor-intensive companies with export orientation is in accordance with the agreement before the wage adjustment.
“There are employers who ask, ‘Ma’am, can I be free not to pay THR?’, I say no. Still THR must be paid,” he said during a press conference at the Ministry of Manpower Office, Jakarta, Friday (17/3).
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The rules that require export-oriented labor-intensive industrial entrepreneurs to provide THR are contained in article 12 paragraph 1 of Permenaker No.5/2023. The regulation states that the amount of wages paid to workers/laborers does not apply as a basis for calculating social security contributions and benefits, compensation for termination of employment, and other rights in accordance with statutory provisions.
Indah added that the wage adjustment was implemented within a maximum period of six months since the Permanaker No.5/2023 was published in March 2022. Beyond that time period, the wages that workers will receive will return according to the agreement before the wage adjustment.
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“Is it possible to extend more than six months? The answer is that this Permenaker is only valid for six months,” said Indah.
The criteria for certain labor-intensive industrial companies that are permitted to apply wage cuts are having a minimum of 200 employees, the percentage of labor costs in production costs is at least 15% and production depends on export requests from the United States (US) and Europe as evidenced by a request letter. order.
The business sectors are the textile and apparel industry, the footwear industry, the leather and leather goods industry, the furniture industry and the children’s toy industry. (Z-10)