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Regulations For Terminated Employees To Receive 60% Of Their Salary For Six Months: Here Are The Requirements
Wednesday, 19 Feb 2025
President Prabowo Subianto has officially signed a new regulation concerning victims of termination of employment (PHK). This regulation is outlined in Government Regulation Number 6 of 2025, which amends Government Regulation Number 37 of 2021 regarding the implementation of the Job Loss Guarantee (JKP) program.
Article 21, Paragraph (1) of this regulation states that workers affected by PHK who are registered in the JKP program are entitled to receive cash benefits each month amounting to 60% of their wages for a maximum duration of six months.
"The cash benefit is provided monthly at 60% of the wage, for a maximum of six months," as stated in Article 21 of Government Regulation Number 6 of 2025, cited on Monday, February 17, 2025.
Previously, under Government Regulation Number 37 of 2021, victims of PHK received wages for six months, with the payment structure being 45% of their salary for the first three months and 25% for the subsequent three months.
However, there is a wage cap set at a maximum of IDR 5 million for this regulation. This provision refers to the amendments in Article 21, paragraphs 1 and 3. If the last wage exceeds IDR 5 million, the cash benefit provided will be based on this upper wage limit.
This decision aims to enhance protection and welfare while reducing social risks for workers who experience termination of employment due to economic conditions, necessitating the government to issue adaptive policies. The government has established protective measures for workers affected by PHK through the Job Loss Guarantee (JKP) program, ensuring they can maintain a decent standard of living during periods of unemployment or job loss.
"This program offers cash benefits, labor market information, and training benefits," as stated in the regulation.
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