The Ministry of Manpower has regulated on Surat Edaran (SE) M/6/HI.00.01/V/2020 that the disbursement of religious days allowance (Tunjangan Hari Raya/THR) in 2020 can be postponed if the company’s financial condition gets impacted by the Covid-19 pandemic as long as the employees agree.
However, the last disbursement of THR cannot be later than 7 days prior to the religious day date. Otherwise, the company will be fined 5% of the THR on top of the THR itself to the employees, as regulated in Peraturan Menteri Ketenagakerjaan RI Nomor 6 Tahun 2016.
Shall a company not pay THR at all, then the company will receive the administrative penalty such as:
- Written warning by the Government
- Limitation to the business
- Freezing to the operations, partially or fully
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*the article is written by Puja Altiar for Startups HR Community organised by HReasily
