A number of benefits from the job creation law claimed by the government



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Jakarta, CNN Indonesia –

The government claims Law (UU) all the law Cipta Kerja (Ciptaker) provides a number of benefits for the community. One of them is about the loss guarantee. profession (PUC).

Coordinating Minister for Economic Affairs Airlangga Hartarto said that JKP would be managed by BPJS Ketenagakerjaan. Later, the government will contribute in terms of strengthening funds in these institutions.

“Precisely with this law, the presence of the State comes in the form of Pancasila’s labor relations, which prioritizes tripatritas relations between government, workers and employers with the issuance of JKP,” Airlangga said in plenary session in the House of Representatives (DPR) a few days ago, quoted on Wednesday (7/10).


Furthermore, the Omnibus Law on Cipta Kerja also grants leave rights to employees. This is especially true for menstrual leave and maternity leave.

“This uu does not eliminate the right to menstrual leave and maternity leave that has been regulated in Law (Law) Number 13 of 2003 on Employment”, explained Airlangga.

Not only for workers, Airlangga affirmed that the Omnibus Law of Job Creation also brought benefits to micro, small and medium-sized enterprises (UMKM) and cooperatives. He said that for the community, they could take care of granting the license for the establishment of UMKM only through registration, so the process was shorter.

“The Employment Creation Law, UMKM actors in the licensing process only through registration,” he added.

For cooperatives, the minimum number of people who founded them was reduced to 9 people. In fact, in the previous rule it was mentioned that the primary cooperative consisted of at least 20 people and the secondary cooperative consisted of at least 3 cooperatives.

“Convenience for cooperatives, in establishing a cooperative of at least 9 people,” Airlangga said.

From a fiscal point of view, the government exempts the Hajj Financial Management Agency (BPKH), social and religious institutions from income tax (PPh). In addition, the government also eliminates income tax on dividends from local business entities with national investment and income tax on dividends from foreign companies with national investment.

“The government and the DPR also agreed to regulate the tax facilities related to the increase in financing by eliminating the income tax on dividends,” he explained.

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Meanwhile, the DPR ensures that severance pay is maintained in the Omnibus Employment Creation Law. This was explained through the official Instagram account @dpr_ri.

The DPR indicated that the rules for severance pay are contained in Chapter IV regarding Labor. Article 89 relative to the amendments to Article 156 Paragraph 1 of Law 13/2003 on Labor.

“In the event of termination of employment, employers are obliged to pay severance and / or payment for service and compensation rates that they should have received,” wrote the draft of the Omnibus Law on Job Creation.

In addition, the DPR also declared that the regional minimum wage (UMR) is maintained. Regarding wages, DPR states that there have been no changes because they are still calculated based on time or results.

The same goes for the right to leave. DPR said that companies are required to grant license rights to their employees.

Later, DPR denied that contract workers (Outsourcing) will be hired for life. According to DPR, outsourced workers still have the opportunity to become permanent workers at outsourcing companies.

Also, companies cannot unilaterally terminate employment (PHK) on their employees. The dismissal decision is an agreement between the company and the worker.

So, social security still exists. The social security in question includes, among others, health insurance, occupational accident insurance, old-age security, pension security, life insurance and job loss insurance.

Infographic 6 Important Points of the Employment Cluster Ciptaker Omnibus LawInfographic Cluster of 6 important employment points Ciptaker Omnibus Law. (CNN Indonesia / Asfahan Yahsyi).

In addition, the DPR also ensures that the status of employees remains, and that foreign workers are not free to enter and must comply with applicable requirements. So, there is no prohibition for workers to express their opinions.

Still, the ratification of the law sparked protests. The union strongly opposes the Omnibus Law on Cipta Kerja because it is seen as having eroded the welfare of workers.

The president of the Indonesian Trade Union Confederation of Workers (KSPI), Said Iqbal, said the government had reduced the severance pay for workers affected by layoffs (PHK) from 32 months of salary to 25 months remaining.

He said that the government and businessmen would pay the compensation. The distribution is that the employer will pay 19 times the salary and 6 times the salary paid by the BPJS Ketenagakerjaan.

Furthermore, Said stated that the government eliminated the city / regency sectoral minimum wage (UMSK) and established a conditional city / district minimum wage (UMK). According to him, UMK does not need to be conditional and UMSK must still exist.

Then, he considered the right to leave and the wage rights to leave disappeared in the Omnibus Law of Job Creation. It is also considered that the regulation eliminates pension and health insurance for workers because the situation of contract workers has changed for life.

(aud / agt)



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