EID AL FITR BONUS COMPULSORY IN INDONESIA

Minister of Manpower and Transmigration of Indonesia Erman Suparno said the Eid al Fitr bonus was “obligatory” and would enable Muslim workers to depart to their home villages to celebrate the holidays with family. Referring to the compulsory bonus as a “religious allowance”,

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Minister of Manpower and Transmigration of Indonesia Erman Suparno said the Eid al Fitr bonus was “obligatory” and would enable Muslim workers to depart to their home villages to celebrate the holidays with family. Referring to the compulsory bonus as a “religious allowance”, Erman said that it must be paid, at the latest, a week before workers celebrate Eid al Fitr. Administrative sanctions, including revocation of business licence, would be imposed on employers who failed to do so, he said. A 1999 ministry of manpower decree makes the timing of the annual bonus – which is equal to one month’s salary – accord with the observance of religious holidays. So Muslim employees receive their Eid al Fitr allowance and Christians receive an equivalent bonus ahead of Christmas.  The announcement by the Minister was made amidst the report that a number of companies were not complying with the ministerial decree. Chairman of the Confederation of Indonesian Prosperous Labour Union (SBSI), Rekson Silaban, slammed the government for its failure to detect employers in violation of the law on annual bonuses.