Employers in Indonesia demanded overtime pay for work done on public holidays
The Department of Labor has said employers are required to pay wages to workers who work overtime during national holidays.
“Article 187 of the Employment Creation Act states that entrepreneurs and employers who fail to pay overtime wages on public holidays (Article 85(3)) shall be punished with imprisonment for a minimum of one month and a maximum of 12 months and/or a fine of at least Rp 100 million Director-General of Supervision, Manpower and Occupational Safety and Health at the Labor Ministry Haiyani Rumondang said in a recent written statement.
The obligation to pay overtime wages was established in Article 78, paragraph 2, of Law No. 11 of 2020 on Job Creation and in Article 29, paragraph 2 of PP No. 35 of 2021 in relation to certain Temporary Employment Contracts (PKWT), outsourcing and work Time, rest time and layoffs, she said.
Their statement stressed that business owners or employers who employ workers on the first and second days of Eid al-Fitr or on government-designated collective leave and national holidays are required to pay overtime wages in accordance with current regulations.
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Employers who fail to pay overtime wages to such workers face severe penalties, including imprisonment for a minimum of one month and a maximum of 12 years, and/or a fine of a minimum of Rp 10 million (US$700) and a maximum 100 million rupees (US$7,000) according to Antara.