Indonesia offers US$65.7m in wage subsidies for almost a million workers

Updated: Oct 2, 2021

INDONESIA: The government of Indonesia has dispensed wage subsidies worth USD 65.7 million (IDR 947 billion) to 947,499 workers, as part of its support strategy for businesses impacted by the Covid-19 pandemic.

Its Finance Ministry said employees under Level 3 and Level 4 public mobility restrictions will receive a wage subsidy of one million rupiah for two consecutive months. Recipients will need to be registered with the Workers' Social Security Agency, which will pass the information on to the Ministry of Manpower for funds disbursement.

Directory-General of Treasury at the Finance Ministry said the assistance would help companies recover from the pandemic, while ensuring workers are able to continue meeting their most basic needs.

The government hopes that the subsidy can prevent massive layoffs, as employers are facing difficulties paying out their workers’ wages,” the Ministry said.

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