REPUBLIKA.CO.ID, JAKARTA -- The Ministry of Labour has declared that they will impose administrative sanctions and fines for employers who do not pay or late payment of holiday allowance known as THR to workers.

Minister Hanif Dhakiri said that if the employer pays THR late they will be fined five percent of the total THR to be paid to workers / laborers. Employers will also be subjected to administrative sanctions in the form of a written warning and restriction of business activities.

"We ask all companies to carry out its obligation to pay in accordance with THR," Hanif said in Jakarta, Thursday (30/6).

THR payment deadline is on Wednesday (29/6) so that workers who have not obtained THR will be asked to report the complaint to THR posts at the Ministry of Labour or in each province and district / city.

"We have THR complaint posts ranging from the center to the regions. So if there are friends who have not paid the workers their rights, please go to the THR our complaint posts,” Minister said.

Meanwhile, since 2016 the MOM issued new regulations regarding payments of THR according to the Minister of Labour Ordinance No. 6/2016 on Religious Holiday Allowance for employees / workers in the company.

Minister changed the terms of payment of the previous THR that must be given to workers / laborers who had been working for three months constantly becomes a continuous month.

MOM also issued Regulation of the Minister of Manpower No. 20 / 2016 on Procedures for Granting sanctions Administrative which among other things regulates strict sanctions for companies who neglect to pay the THR.

In these rules stated if the employer pays THR late it will incur a fine of five percent of the total THR paid to laborers / workers.

Administrative sanctions in the form of a written warning given under a memorandum of examination and report of non-compliance to enlist in employment.

While sanctions restrictions on business activities consider a few things that caused a written warning not implemented by employers as well as considering the company's financial condition as seen from the last two years of financial statements and audited by public consultants.

Sanctions imposed restrictions on business activities to entrepreneurs fulfils the obligations to pay THR.

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