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Jakarta –
The president of the Indonesian Employers Association (Apindo), Hariyadi Sukamdani, said that the regulation on severance pay for layoff victims (PHK) of 32 times the salary caused many companies to fail to comply. In the Employment Creation Law, this provision is reduced to 25 times.
According to Hariyadi, the provisions contained in Law Number 13 of 2003 on Labor are very onerous for companies. This is because, in addition to severance pay, companies also have the burden of paying workers’ social security.
“That is if 32 it is very difficult. So if 32 the conditions in the field are really very harsh, because in relation to the issue of severance pay, in addition to severance, we also have to reserve what is called cost of social security, we have to pay the BPJS Employment and Health fees. “Hariyadi said at a press conference on the Job Creation Law, at the Indonesian Chamber of Commerce and Industry, Jakarta, on Thursday (15 / 10/2020).
He said that the company’s expenses for paying severance pay were already 8%, not to mention the additional expenses for paying workers’ social security.
“Companies should reserve around 8% for compensation outside the pension security, if it is added with social security, it is 10.24-11.74%,” he explained.
Furthermore, according to him, when Law 13/2003 was drafted, especially the provisions on severance pay were not stipulated on the basis of academic studies and facts on the matter.
“I also participated when I discussed Law 13/2003. Sorry, at the time it was pretty inconsequential too. Anyway, I only put a number without academic study that involves actuarial, it did not exist. I really remember that the conditions were not like that. less than 19 times. If I’m not mistaken, we only spoke 9 times, “said Hariyadi.
Finally, after 17 years of promulgation of Law 13/2003, many companies did not comply with the severance pay 32 times their salary.
“After 17 years, in the end, the number of people who can do it all is minimal,” Hariyadi said.
Therefore, with the provision for the company to pay 19 times the wages and 6 times the wages paid by the government, it is expected that the employers can carry out in an orderly manner.
“If the question is, is there a guarantee? Yes, I hope this is more suited to the capabilities of the company,” Hariyadi said.
Watch video “ Severance pay in the Omnibus Act, a bitter pill for workers“
[Gambas:Video 20detik](zlf / zlf)
