The Indonesian Minister of Manpower, Yassierli, has issued a newcircular letter (Number t4/6/HK.04/xrr/2024) on December 6, 2024, replacing the previous one from April 14, 2022. This letter outlines rules for national holidays and collective holidays in companies. Here are the key points:
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National Holidays:
- National holidays are official holidays set by the government.
- Workers are not obligated to work on these holidays.
- Exceptions apply if the work is continuous in nature, as defined by a certain ministerial decision (KEP.233/MEN/2003).
- Employees can work on holidays with mutual agreement between employee and employer.
- Employers must pay overtime wages for work done on holidays.
- Collective Holidays:
- Collective holidays are part of annual leave and are optional, depending on agreements between employers, employees, and/or unions.
- Employees who take collective holidays will have their annual leave reduced accordingly.
- Employees who work on collective holidays will not have their annual leave reduced and will be paid as if it were a regular workday.
The minister requests that the circular be disseminated to regional heads and relevant parties. The previous circular (Number M/3/HK.04/IV/2022) is revoked and no longer applies.
Title: Menaker Introduces New Regulations for Paid Annual Leave, Here’s What You Need to Know
In a move to boost employee well-being and tourism within Indonesia, the Minister of Manpower (Menaker) has introduced new regulations regarding paid annual leave, known as cuti bersama-libur nasional (CSLN). The new rules, outlined in Ministerial Regulation No. 13/2021, came into effect on June 9, 2021, replacing the previous regulation (No. 35/2015). Here’s an overview of the key changes and their implications for employees and employers.
1. Clarification of Paid Annual Leave Concept
The new regulation clarifies the concept of paid annual leave to include not only days off, but also the salary period during which the leave is taken. This means that if an employee takes paid annual leave, they are entitled to their full salary for that period.
2. Increase in Accrual Rate
Under the new regulation, employees will accrue annual leave more quickly. The accrual rate has increased from 1.67 days per month to 2.5 days per month. This means that for each month worked, an employee will earn 2.5 days of annual leave. This significant increase aims to encourage employees to take leave more frequently to prevent excessive accumulation and ensure they enjoy their entitled benefits.
3. Leave Encashment
Employees can now encash their unused annual leave balances that have accumulated over five years, provided they have at least 25 days of unused leave. This encourages employees to take their leave and avoid having excessive balances, which can be challenging to manage for both employees and employers.
4. Leave Accrual During Probation
The new regulations stipulate that employees on probation will also accrue annual leave. This is a significant change from the previous regulation, which did not obligate employers to grant leave to probationary employees.
5. Leave during Haji and Umrah
The new regulations provide that employees are entitled to one day of paid leave for every day spent on Haji (pilgrimage to Mecca) and Umrah (minor pilgrimage to Mecca). This leave can be taken consecutively with the employee’s annual leave.
6. Improved Employer Record-Keeping
The new regulations require employers to maintain detailed records of employee leave, including accruals, encashments, and any adjustments made to leave balances. This improved record-keeping aims to enhance transparency and prevent disputes related to leave balances.
7. Transition Period
The new regulations provide a transition period for employers to bring their records and policies in line with the new requirements. They have until the end of 2021 to adjust their systems and ensure compliance with the new rules.
In conclusion, the new Menaker regulations on paid annual leave aim to promote work-life balance, boost employee well-being, and stimulate domestic tourism. They significantly enhance employee entitlements and require employers to maintain more comprehensive records. Both employees and employers should familiarize themselves with these changes and take the necessary steps to ensure compliance.
