Pay THR allowance 7 days before Eid, minister tells firms

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Companies must pay the 2022 Eid al-Fitr allowance (THR) to their employees no later than seven days before Eid al-Fitr, Manpower Minister Ida Fauziyah stressed at a virtual press conference here on Friday.

The THR payment must be in accordance with the circular on the 2022 implementation of THR, dated April 6, 2022, No. M/1/HK.04/IV/2022, the minister said.

“(The circular) requires employers to give THR, in accordance with the provisions of laws and regulations,” she added.

According to Fauziyah, the implementation of the annual bonus has considered the normalization of community activities due to various policies that are deemed to have controlled the spread of COVID-19 as well as the high number of vaccinations.

In the context of employment, the government’s national economic recovery program has strengthened the sustainability of work and businesses, in addition to helping bring down the unemployment rate, she said.

The provision of THR to workers is aimed at meeting the needs of workers and their families as they celebrate religious holidays, she added.

According to Fauziyah, the THR payment is based on Government Regulation No. 36 of 2021 concerning salary provision and Ministerial Regulation No. 6 of 2016 concerning religious holiday allowance for workers or laborers in companies.

She also reaffirmed that the provision of THR is an obligation that must be carried out by employers for their employees.

“Religious THR is a non-wage income that must be paid by employers no later than seven days before religious holidays,” Fauziyah said.

Further, the circular letter stipulates the status of workers who are entitled to receive THR, including PKWT (fixed-term employment contract), PKWTT (Employee Agreement for an Indefinite Period or permanent contract), day laborers, domestic workers, outsourced workers, and honorary workers, among others, the minister added.

The Ministry of Manpower has also set up a THR Post to accommodate consultations and complaints related to the implementation this year.

Source: Antara News