Workers will receive wage subsidy assistance from the government this year: Indonesia’s MOM

According to Minister for Manpower, Ida Fauziyah said the assistance (berupa subsidi gaji/upah, or BSU) is estimated to reach and assist 8mn Indonesians.

Salary and wage assistance for workers and labourers is in the pipeline, said Indonesia’s Minister for Manpower Ida Fauziyah on 21 July (Wednesday). With this assistance (berupa subsidi gaji/upah, or BSU), the government hopes to prevent employment terminations as well as assist workers who were laid off due to the COVID-19 pandemic.

According to Minister Ida, once in place, the BSU, with an estimate worth of up to IDR 8tn, is estimated to reach approximately 8mn Indonesians.

"This amount is still in the form of an estimate considering that the data screening process that meets the above criteria is still being carried out by the Employees Social Security System (or BPJS Ketenagakerjaan)," explained Minister Ida.

“Later, BSU will be regulated in the Ministry of Manpower (MOM).”

Who benefits from BSU?

In Minister Ida’s speech, the BSU works under a few criteria.

For starters, BSU will provide assistance to those who are Indonesian citizens, workers and labourers receiving wages, and those who are registered as a worker social security participant who is still active in BPJS Ketenagakerjaan.

Minister Ida shared: "BPJS Ketenagakerjaan was chosen as the data source, considering that the current data is considered to be the most accurate and complete.

“It will be used by the government as a basis for providing subsidised assistance quickly and on target."

The other criteria are:

• Those who are living in areas imposed with Level 4 of Emergency Community Activity Restrictions (Pemberlakuan Pembatasan Kegiatan Masyarakat, or PPKM);
• Those who pay contributions with the amount of contributions calculated based on wages below IDR 3.5mn; and
• Those who are in sectors affected by PPKM, which includes the consumer goods industry, trade and services (except for education and health services), transportation, various industries, and property and real estate.

"The provision of BSU is expected to be able to increase purchasing power and maintain the level of welfare of workers and laborers, Minister Ida said.

“The existence of BSU is also expected to be able to help ease the burden on entrepreneurs to be able to maintain their business during the COVID-19 pandemic."

Once the BSU is approved, the Minister shared, workers and labourers can expect to receive IDR 1mn each via bank transfer.

Related news: Indonesia’s Ministry of Manpower urges employers to avoid layoffs, pay proper wages to WFH staff during PPKM

Image / Indonesia's Ministry of Manpower's Facebook

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!