Based on an article on the Mekari Talenta Blog, compensation in the scope of a company means all rewards received by an employee for services or results of his work. The government has regulations related to compensation regulated in the Manpower Law Regulations that companies must comply with.
Important
Tax
0-50,000,000 -> 0%
>50,000,000 -100,000,000 -> 5%
>100,000,000 - 500,000,000 -> 15%
>500,000,000 -> 25%
The following is a Mekari Talenta multiplier guide regarding compensation for reasons of employee resignation based on these regulations.
A. Multiplier Reason of Resignation Mekari Talenta
No. | Reason for Resignation | Compensation | Manpower Law Regulation no. 35/2021 | ||
UP : Severance Pay | UPMK: Merit Pay | UPH: Compensation Pay | |||
1 | Resign without pressure | x | x | √ + separation fee | Article 50 |
2 | Failed Probation Period | x | x | x | |
3 | Completed PKWT | x | x | x | |
4 | Workers commit violations of employment agreements, collective work agreements, or company regulations | 0.5x | 1x | √ | Article 52 paragraph 1 |
5 | Workers file for layoffs due to employer violations | 1x | 1x | √ | Article 48 |
6 | Termination of employment due to a company decision not to violate the Employment Agreement, Joint Work Agreement, or Company Regulations | x | x | √ + separation fee | Article 49 |
7 | Companies are carrying out efficiency or closing down because the company is making losses | 0.5x | 1x | √ | Article 43 paragraph 1, article 44 paragraph 1 |
8 | Companies carry out efficiency to prevent losses | 1x | 1x | √ | Article 43 paragraph 2 |
9 | Merger, Acquisition, change of status and Workers do not want to continue the employment relationship | 1x | 1x | √ | Article 41 |
10 | Merger, Acquisition, change of status and Employer does not want to continue the employment relationship | 1x | 1x | √ | Article 41 |
11 | Company Takeover | 1x | 1x | √ | Article 42 paragraph 1 |
12 | Company Takeover and Workers/Laborers are unwilling to continue the Employment Relationship | 0.5x | 1x | √ | Article 42 paragraph 2 |
13 | The company closed not because of losses | 1x | 1x | √ | Article 44 paragraph 2 |
14 | Layoffs due to force majeure and company closures | 0.5x | 1x | √ | Article 45 paragraph 1 |
15 | Layoffs due to force majeure but the company does not close | 0.75x | 1x | √ | Article 45 paragraph 2 |
16 | The company is in a state of debt obligation suspension due to losses | 0.5x | 1x | √ | Article 46 paragraph 1 |
17 | The company is in a state of debt obligation suspension not due to losses | 1x | 1x | √ | Article 46 paragraph 2 |
18 | Bankrupt company | 0.5x | 1x | √ | Article 47 |
19 | Worker died | 2x | 1x | √ | Article 57 |
20 | Worker is absent for 5 days or more and has been summoned 2 times appropriately | x | x | √ + separation fee | Article 51 |
21 | Workers who are sick for a long time or due to a work accident (after 12 months) | 2x | 1x | √ | Market 55 |
22 | Workers entering retirement age | 1.75x | 1x | √ | Article 56 |
23 | Workers are detained and unable to perform work (after 6 months) which is detrimental to the company | x | x | √ | Article 54 paragraph 1 |
24 | Workers are detained and unable to perform work (after 6 months) but do not harm the company | x | 1x | √ | Article 54 paragraph 2 |
25 | Workers are detained and found guilty of causing harm to the company | x | x | √ | Article 54 paragraph 4 |
26 | Worker was arrested and found guilty but did not harm the company | x | 1x | √ | Article 54 paragraph 5 |
27 |
Workers/Laborers commit violations of a criminal nature urgent as stipulated in the Employment Agreement, Regulations Company, Other Agreements. |
x | x | √ | Article 52 paragraph 2 |
28 | Others |
B. Severance Pay Multiplier
No. | Calculation of Severance Pay [Article 40 paragraph (2) Employment Law no 35/2021] | Article 156 paragraph 2 of Government Regulation in Lieu of Law Number 2 of 2022 | |
Period of Service (Length of Service) | UP that can be obtained | ||
1 | less than 1 (one) year | 1x | 1 Month Wages |
2 | 1 (one) year or more but less than 2 (two) years | 2x | 1 Month Wages |
3 | 2 (two) years or more but less than 3 (three) years | 3x | 1 Month Wages |
4 | 3 (three) years or more but less than 4 (four) years | 4x | 1 Month Wages |
5 | 4 (four) years or more but less than 5 (five) years | 5x | 1 Month Wages |
6 | 5 (five) years or more, but less than 6 (six) years | 6x | 1 Month Wages |
7 | 6 (six) years or more but less than 7 (seven) years | 7x | 1 Month Wages |
8 | 7 (seven) years or more but less than 8 (eight) years, | 8x | 1 Month Wages |
9 | 8 (eight) years or more | 9x | 1 Month Wages |
C. Merit Pay Multiplier
No. | Calculation of Length of Service Award Money [Article 40 paragraph (3) of Manpower Law no. 35/2021] | Article 156 paragraph 3 of Government Regulation in Lieu of Law Number 2 of 2022 | |
Period of Service (Length of Service) | UPMK that is obtained | ||
1 | 3 (three) years or more but less than 6 (six) years | 2x | 1 Month Wages |
2 | 6 (six) years or more but less than 9 (nine) years | 3x | 1 Month Wages |
3 | 9 (nine) years or more but less than 12 (twelve) years | 4x | 1 Month Wages |
4 | 12 (twelve) years or more but less than 15 (fifteen) years | 5x | 1 Month Wages |
5 | 15 (fifteen) years or more but less than 18 (eighteen) years, | 6x | 1 Month Wages |
6 | 18 (eighteen) years or more but less than 21 (twenty one) years | 7x | 1 Month Wages |
7 | 21 (twenty one) years or more but less than 24 (twenty four) years | 8x | 1 Month Wages |
8 | 24 (twenty four) years or more | 10x | 1 Month Wages |
D. Compensation Pay Multiplier
Calculation of Replacement Money [Article 40 paragraph (4) Employment Law no 35/2021] | Article 156 paragraph 4 of Government Regulation in Lieu of Law Number 2 of 2022 |
UPH consists of: | |
a. annual leave that has not been taken and has not yet expired; | |
b. costs or expenses for workers and their families to return to the place where the worker was accepted to work; | |
c. replacement of housing as well as medical and treatment is set at 15% (fifteen percent) of severance pay and/or service bonus for those who meet the requirements; | |
d. other matters stipulated in the employment agreement, company regulations or collective work agreement. |
This is the Mekari Talenta multiplier guide regarding compensation for reasons of employee resignation based on government regulations.