Indonesia employers risk punishment if employees who work during national holidays are not paid overtime wages

Depending on how many days the employee works per week, employers are to abide by MOM's multiplier and formula to calculate and pay for their overtime wage.

Employers in Indonesia will be sanctioned with imprisonment for one month and/or a fine of IDR10mn, if they fail to pay their employees overtime (OT) wages for working during the national holidays. This was shared by Indonesia's Ministry of Manpower (MOM) on Facebook, after the Ministry's Secretary-General Anwar Sanusi talked about letting employees decide when to use annual leaves for Eid Al-Fitr.

According to MOM, the punishment could also escalate up to an imprisonment of 12 months, and/or a fine of IDR100mn.

On that note, the Ministry released an infographic to specifically explain how much must employers pay their employees when they work overtime during the national holidays. It is as follows:

Scenario #1 - General calculation (when employees work for six days a week, or 40 hours per week)

• For the first until the seventh hour, employers are to pay twice the employees' hourly wage;
• For the eighth hour, employers are to pay thrice the employees' hourly wage, and
• For the subsequent ninth, tenth, and eleventh hour, employers are to pay four times the employees' hourly wage.

Scenario #2 - General calculation (when employees work for five days a week, or 40 hours per week)

• For the first until the eighth hour, employers are to pay twice the employees' hourly wage;
• For the ninth hour, employers are to pay thrice the employees' hourly wage, and
• For the subsequent tenth and eleventh hour, employers are to pay four times the employees' hourly wage.

In terms of numbers, the Ministry explained that, assuming an employee — whose working hours fall under Scenario #1 above — works during Eid Al-Fitr. He/she, with a monthly wage of IDR4mn, clocked an overtime of seven hours. His/her employer must then calculate the employee's OT wage accordingly:

Step 1: Monthly wage / 173. This translates to: IDR4mn / 173 = IDR23,121.387 ≈ IDR23,121.39

Step 2: Overtime hours x The breakdown stated in Scenario #1 or #2 x (Monthly wage / 173). This translates to: 7 x 2 x IDR23,121.387 = IDR323,699.422 ≈ IDR323,699.42

Refer to the original posts here for the calculations to be done, and here for an example of how to do so. 

Image / Indonesia's Ministry of Manpower (MOM)

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