Job Creation Law Passed, Private Employees Entitled To Additional Money And Other Benefits

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Job Creation Law Passed, Private Employees Entitled To Additional Money And Other Benefits

Saturday, 30 Nov 2024

The Job Creation Law serves as a source of protection for workers, outlining the rights and obligations of both companies and employees. A primary focus of this law is on wage regulations, specifically detailed in the derivative regulation, Government Regulation No. 36 of 2021.

The provisions regarding wages are aimed at enhancing the welfare of the community. According to Government Regulation No. 36 of 2021, employees are entitled to receive additional payments beyond their basic salary and allowances. These additional payments fall under the category of non-wage compensation, separate from salaries and allowances.

The non-wage payments include bonuses, reimbursements, incentive payments, service fees, and holiday allowances. Bonuses are a right of employees that must be provided when the company achieves higher profits, with the amount specified in the employment contract or agreement with the company.

Furthermore, reimbursements must be given when the company is unable to provide adequate facilities to support employees in their tasks. The amount is determined by the company's policies.

Service fees are applicable only in certain businesses, particularly those in the service sector, such as restaurants and hotels. This is specifically regulated under Minister of Manpower Regulation No. 7 of 2016, which states that service fees are additional charges for the services rendered by the company.

These funds are collected and subsequently distributed for various purposes: 3% for damage risk, 2% for improving human resource quality, and 95% for employee bonuses. Meanwhile, the amount of these additional payments will be determined by respective companies. (putri@insightinnews.com)

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