South Sulawesi Apindo Provides Solutions for Employers Struggling to Pay Holiday Allowances
Friday, 14 March 2025
MAKASSAR – The Provincial Executive Board (DPP) of the Indonesian Employers' Association (Apindo) of South Sulawesi has outlined several steps that employers can take if they face difficulties in fulfilling their obligation to pay Holiday Allowances (THR) to their employees.
The Chairman of DPP Apindo South Sulawesi, Suhardi, explained that paying THR is a legal obligation stipulated by law.
However, he acknowledged that the still unstable economic conditions could pose challenges for some companies, particularly those in the lower and middle business sectors.
"Holiday Allowance (THR) is an employee’s right as regulated in Law Number 13 of 2003 concerning Manpower and Government Regulation Number 78 of 2015 concerning Wages. Employers who fail to pay THR will be subject to a fine of 5 percent of the total THR payable," Suhardi stated, as quoted by Radar Makassar Daily, Thursday (March 13).
Nevertheless, Suhardi noted that some companies are struggling due to economic pressures.
Therefore, he outlined several steps that employers can take in accordance with the applicable regulations:
- Operational Cost Efficiency: Employers may reallocate funds by reducing operational costs to ensure THR payments. If necessary, temporary bridging funds can also be sourced from other budget allocations.
- Applying for a THR Payment Postponement: If the company is still unable to make the payment, employers may apply for a postponement of THR payments to the Manpower Office (Disnaker). This application must be accompanied by the company’s financial report and a mutual agreement with employees.
- THR Installment Payments: As a last resort, companies may pay THR in installments. However, this option is only permissible with the consent of the affected employees.
Regulations regarding THR payments are outlined in the Minister of Manpower's Circular Letter (SE) Number M/2/HK.04.00/III/2025, which stipulates that the payment must be completed no later than seven days before Eid al-Fitr 2025.
"In this situation, communication between employers and employees is crucial. All decisions must be based on deliberation and mutual agreement," Suhardi concluded.
This approach is expected to assist companies in fulfilling their obligations while maintaining good relations with employees amid an uncertain economic climate.
Source: inikata.co.id
