Provision of holiday allowance to bolster economic growth: KSP

Provision of holiday allowance to bolster economic growth: KSP

A worker in Kudus District, Central Java, shows the holiday allowance (THR) money received from the company during the previous year's Eid. (ANTARA / Akhmad Nazaruddin Lathif)

Jakarta (ANTARA) - The main expert of Deputy III at the Presidential Staff Office (KSP) Fadjar Dwi Wisnuwardhani believes that the provision of holiday allowances (THR) will boost economic growth.

"The fulfillment of THR payments can help boost the economy from the demand side," Wisnuwardhani noted in a statement received in Jakarta, Thursday.

Fadjar pointed out that THR was non-wage income. The workers and laborers entitled to receive THR are permanent and contract workers, with a continuous working period of one month or more.

Wisnuwardhani remarked that in general, THR must be provided by employers to workers and laborers and must be paid no later than a week before the religious holidays.

However, Fajar pointed to the severe blow dealt by the COVID-19 pandemic on the current economic conditions, particularly on business continuity.

He explained that in the event of an entrepreneur not being in a position to pay the THR, then a written agreement had to be made.

Moreover, companies must be able to prove their inability to pay the 2021 holiday allowance on time based on transparent internal financial reports.

Fajar also reminded that the provision of THR is based on Article 9 of Government Regulation Number 36 of 2021 on Wages and Labor Minister’s Regulation Number 6 of 2016 on Religious Holiday Allowances for Workers and Laborers in Companies.

As for conducting the implementation of THR, posts for THR matters were formed, with the objective of offering information services, consultations, monitoring services, and handling complaints related to THR payments.

"This post can be accessed online and offline," Fajar stated. Related news: ILO welcomes circular requiring firms to pay holiday allowance
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