Gov’t to Roll Out Wage Subsidy for Workers, Laborers This Year

By : Nata Kesuma | Friday, July 23 2021 - 16:01 IWST

Minister of Manpower Ida Fauziyah. (Photo by: BPMI Documentation)
Minister of Manpower Ida Fauziyah. (Photo by: BPMI Documentation)

INDUSTRY.co.id - In a bid to prevent layoffs due to the impact of COVID-19 pandemic, the Government has decided to continue disbursing wage subsidy for workers/laborers this year.

According to Minister of Manpower Ida Fauziyah, this subsidy aims to prevent entrepreneurs from laying off their workers and to give financial support to furloughed workers.

“This subsidy is also expected to increase people’s purchasing power, maintain workers/laborers’ well-being, and ease the burden of entrepreneurs to do business during COVID-19 pandemic,” she said on Wednesday (21/7).

She expressed hope that the subsidy could ease the burden of companies so the employers and workers can have a bipartite dialogue to seek solutions that benefit all. That way, she added, a harmonious and favorable industrial relationship will be maintained and layoffs will be avoided.

The Minister went on to say that the wage subsidy will be disbursed to 8 million people with a total budget of Rp8 trillion.

“It is only an estimated number since the BPJS Ketenagakerjaan (Social Security Agency for Workers) is still working to screen data to match with prerequisites,” she said.

Guidance for the disbursement of wage subsidy for workers/laborers during COVID-19 pandemic will be set by the Ministry of Manpower under a Regulation of Minister of Manpower.

Those eligible for the subsidy are as follows.

1. Indonesian citizen;

2. Paid workers/laborers;

3. Workers/laborers registered as active participants of the BPJS Ketenagakerjaan;

4. Those having domicile in the zones of Public Activity Restrictions (PPKM) Level 4 as regulated in Instruction of Minister of Home Affairs Number 20 of 2021 jo Number 23 of 2021;

5. Those with salary or wage below Rp3.5 million and paying BPJS Ketenagakerjaan monthly premium based on their wage. If they work within PPKM zones where the minimum wage is more than Rp3.5 million, the wage limit to be applied is their minimum wage;

6. They must work under a number of specific sectors, such as, consumer goods, trade and services (except for educational and health services), transportation, properties, real estate.

Each beneficiary will receive Rp1 million which will be disbursed through bank transfer.

“Once again, the subsidy is proof of the Government’s concerns over the well-being of workers and entrepreneurs during COVID-19 pandemic,” she remarked. 

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