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Jakarta, CNBC Indonesia – The Job Creation Law (Ciptaker Omnibus Law) that was approved by parliament on Monday (10/5/2020) at the DPR Plenary Session, apparently contained changes regarding the severance pay that workers receive.
If previously reference was made to Law No. 13 of 2003 on Manpower, the amount of severance pay that is given is 32 times the salary.
Under the new law, he cut wages from 7 months to just 25 months of salary.
The Executive Director of the Association of Financial Institutions Pension Funds (ADPLK) stated that the amount of benefits consisted of 19 months of salaries paid by the company and 6 months through BPJS Ketenagakerjaan through the Job Loss Guarantee program (JKP ).
Syarif continued, according to the manuscript of the Job Creation Act circulating among the public, Article 156 of the Job Creation Act, paragraph (I), states, if there is a termination of employment (PHK), The employer is required to pay severance pay and / or period of service pay and compensation money that should be accepted.
“The scheme consists of 19 times the salary according to the employer’s work period and 6 times the salary of the JKP (Job Loss Guarantee) program so that it becomes 25 times the salary,” said Syarif, contacted by CNBC Indonesia, on Friday (10/16/2020).
“However, what is related to deadlines – mechanisms – compensation for dismissals will be regulated in a Government Regulation in accordance with the mandate of Article 156 paragraph (5) of the Employment Creation Law,” he said again.
For information, BPJS Ketenagakerjaan has a new program which has also been published in the Job Creation Act, namely JKP.
This program is useful to protect workers who are victims of layoffs. This JKP can later be used as cash, access to labor market information and job training.
The following is a complete breakdown of the severance pay in the Employment Creation Law in article 156 paragraphs 2 and 3.
Severance pay
to. working time less than 1 (one) year, 1 (one) month’s salary;
second. working time 1 (one) year or more but less than 2 (two) years, 2 (two) months of salary;
C. working time 2 (two) years or more but less than 3 (three) years, 3 (three) months of salary;
re. working time 3 (three) years or more but less than 4 (four) years, 4 (four) months of salary;
me. working time 4 (four) years or more but less than 5 (five) years, 5 (five) months of salary;
F. working time 5 (five) years or more, but less than 6 (six) years, 6 (six) months of salary;
gram. working time 6 (six) years or more but less than 7 (seven) years, 7 (seven) months of salary;
h. work period of 7 (seven) years or more but less than 8 (eight) years, 8 (eight) months of salary;
me. working time 8 (eight) years or more, 9 (nine) months of salary.
Reward money per term of service
to. working time 3 (three) years or more but less than 6 (six) years, 2 (two) months of salary;
second. working time 6 (six) years or more but less than 9 (nine) years, 3 (three) months of salary;
C. working time 9 (nine) years or more but less than 12 (twelve) years, 4 (four) months of salary;
re. working time 12 (twelve) years or more but less than 15 (fifteen) years, 5 (five) months of salary;
me. working time 15 (fifteen) years or more but less than 18 (eighteen) years, 6 (six) months of salary;
F. working time 18 (eighteen) years or more but less than 21 (twenty-one) years, 7 (seven) months of salary;
gram. working time 21 (twenty-one) years or more but less than 24 (twenty-four) years, 8 (eight) months of salary;
h. working time 24 (twenty-four) years or more, 10 (ten) months of salary.
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