The Minister Has Imposed Penalties On Employers Who Fail To Pay Holiday Bonuses

The Circular Letter (SE) from the Minister of Manpower of the Republic of Indonesia, Number M/2/HK.04.00/III/2025, regarding the implementation of the Religious Holiday Allowance (THR) for 2025 for workers in companies does not specify penalties for companies that fail to pay THR. So, what are the consequences if a company does not pay THR to its employees? When asked about penalties, Minister of Manpower Yassierli encouraged the public to focus on the positive aspects.

“It’s amusing that the only question is about penalties, while our goal in creating this SE is to promote a spirit of family,” Yassierli stated at his office on Tuesday (March 11, 2025). “So, look at it positively; don’t just focus on the penalties for non-payment. This is about building a spirit of togetherness and family,” he added.

The SE is based on Government Regulation Number 36 of 2021 concerning Wages and Minister of Manpower Regulation Number 6 of 2016 regarding Religious Holiday Allowances for Workers. It states that THR must be paid at least 7 days before the Religious Holiday and must be paid in full, not in installments. According to Article 10 of Minister of Manpower Regulation Number 6 of 2016, employers who delay THR payments will incur a fine of 5% of the total THR due, starting from the end of the payment deadline. Furthermore, Article 11 indicates that employers who do not pay THR will face administrative sanctions as per legal regulations. For workers facing issues with THR payments, the Ministry of Manpower has set up THR assistance posts in various regions, provinces, districts, and cities.

The establishment of the THR Post aims to provide consultation services and enforce laws related to THR payments, emphasized the Minister of Manpower. As of this report, Kompas.com has sought further information from the Ministry of Manpower regarding penalties for companies that fail to pay THR to their employees. However, no response has been received so far.

Tag: Religious Holiday Allowance THR Yassierli