Jakarta, Indonesia Sentinel — Indonesia’s Ministry of Manpower (Kemnaker) has mandated that employers must pay overtime pay to workers required to work on national holidays or official leave days, ahead of the Christmas and New Year holiday period.
The directive was issued in a circular (SE) by the Minister of Manpower regarding Implementation of National Holidays and Collective Leave for Companies, under Circular No. M/6 HK.04/XII/2024.
“Employers requiring workers to perform duties on national holidays or official leave days must pay overtime wages,” stated the circular, as reported by Detik on Thursday, December 12.
The circular explains that national holidays are government-designated days off, during which employees are not obligated to work. Employers are allowed to require workers to perform duties on holidays and leaves if the nature of the work demands continuous operations, with the note that they are still obligated to pay overtime wages in such cases.
The exceptions are made for roles requiring continuous operations, were outlined in Ministerial Decree No. KEP.233/MEN/2003 on regarding the types and nature of work that must be performed continuously.
“In specific circumstances, employers can require workers to work on national holidays or official leave days, based on mutual agreements between the employer and employees,” the circular stated.
Clarifications on Collective Leave Days
The Ministry also addressed “collective leave” days on the circular, clarifying that these are part of employees’ annual leave entitlements and are optional. Their implementation depends on agreements between employers, employees, and/or labor unions, as stipulated in employment contracts, company regulations, or collective bargaining agreements.
“Workers who take leave on designated collective leave days will have their annual leave entitlement reduced accordingly,” the circular noted. However, employees who choose to work during collective leave days will retain their full annual leave entitlement and receive regular pay as on standard workdays.
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This latest circular supersedes Circular No. M/3/HK.04/IV/2022, issued on April 14, 2022, regarding collective leave implementation in companies.
Ministry’s Appeal to Employers and Workers
Indah Anggoro Putri, Director General for Industrial Relations and Social Security Development at the Ministry of Manpower, urged both employers and workers to comply with the new regulations. The circular aims to ensure clarity and fairness as the country prepares for the 2024/2025 Christmas and New Year holidays.
“Kemnaker hopes that both workers and employers will adhere to this circular and that we can all welcome the Christmas and New Year holidays with joy,” Indah concluded, as reported by Detik.
With the issuance of this circular, the Ministry of Manpower hopes that both employers and workers will comply with these guidelines, ensuring a fair and productive work environment while allowing everyone to celebrate the holiday season responsibly.
(Raidi/Agung)
