Dessy Sagita – The Manpower and Transmigration Ministry said on Sunday that it had warned companies about paying this year's Lebaran bonus on time, and invited the public to report those that failed to comply.
"We have sent out circulars stating that the bonus must be paid before the holiday, and I hope companies will not violate the regulation," said Minister Muhaimin Iskandar, according to state news agency Antara.
Suhartono, a ministry spokesman, said the circular reminded employers that they were required to pay the bonus at least a week before Idul Fitri, which falls on Aug. 30 and 31 this year.
A 1994 ministerial decree on holiday bonuses states that employees who have been with a company for at least a year are entitled to receive a bonus equivalent to one month's salary. Those who have been with a company for more than three months but less than a year are entitled to a pro-rated bonus based on their length of employment.
A 1969 law also states that if a company fails to pay holiday bonuses it can be fined Rp 100,000 ($12) and its owners detained for up to three months.
"We have notified our offices across the country to monitor how the bonuses are given out, to make sure that every company complies with the regulation and that all employees receive what is rightfully theirs," Suhartono said.
According to the ministry, employees who fail to receive their bonus on time can file a complaint against their employers. Muhaimin said companies experiencing financial difficulties could also plead their case to the ministry and be given dispensation to postpone the bonus.
But Suhartono clarified that there must be a clear agreement between the company and its workers on when the bonus would be paid. "And if any companies still refuse to fulfill their obligations even after discussions with their workers, we will bring them to court," he said.
The Ramadan bonus regulation does not apply to civil servants who receive a 13th month salary annually.
Sulistri, from the Confederation of Indonesian Labor Unions (KSBSI), said that despite the ministerial decree, many workers would not receive a Ramadan bonus because they were not permanent employees.
"These people's contracts are only for three to six months, and they were intentionally designed to end before Idul Fitri so the companies wouldn't have to pay the Ramadan bonus," she said.
Sulistri said the 2003 Labor Law stated that a worker's contract should last for at least 12 months. However, she said, a lack of government monitoring meant companies could ignore the regulation with little fear of being caught.
She also said the Ramadan or any other holiday bonus should be paid at least two weeks before the holiday, not a week, as instructed by the ministry.
"A week before Idul Fitri, or any other holiday, prices have already soared. Many people won't be able to afford tickets to their hometown a week before the holiday," she said.
The government needs to hire competent staff to monitor companies and ensure they comply with all employment regulations, including those dealing with holiday bonuses, she said.