Garment: Compensation

Overtime Pay for Garment Workers

What is overtime work?

Overtime work is all work exceeding normal working hours or working hours on a weekly rest day and/or public holidays set by the Government. Indonesian Labour Laws stipulates that working hours are limited to 40 hours per week, in the following way:

• 8 hours per day for 5 normal working days a week
• 7 hours per day for 6 normal working days a week

Thus, any work beyond 40 hours is considered overtime, except for some types of work that must be performed continuously and are regulated by a Ministerial decree.

Do I get paid in case of overtime work?

Basically, employers who employ workers to work overtime have to pay overtime wages. However, the provisions of overtime work does not apply to certain business sectors or type of work that is regulated by a Ministerial decree.

Is there a maximum limit of overtime hours for garment workers?

Overtime work should not exceed 3 hours per day or 14 hours per week, but this time restrictions on overtime work do not include overtime work performed on a weekly rest day or a public holiday. This regulation also does not apply to certain business sectors or type of work that is regulated by a Ministerial decree

Can garment factories force their workers to work overtime because of peak target orders from buyers?

Overtime is voluntary, which means that employers must obtain the written consent of the workers to do overtime. Overtime may occur if there is an agreement between workers and employers. If the workers do not want to do overtime employers cannot enforce it.

However, according to the Ministerial decree NO: KEP.233 / MEN / 2003, there are several types of jobs that require overtime work even without consent of the workers, while it is still considered to be and counted as overtime work.

Does the garment sector fall under the category of types and nature of jobs that must be performed uninterrupted as regulated by Ministerial decree?

The garment sector is not included in types of job that must be performed uninterrupted. Below is a list of sectors and the job types where continuous service is to be provide, according to the Ministry of Manpower Decree on Types and Nature of Jobs that Must be Performed Uninterrupted

• Health sector
• Telecommunications and postal services
• Transport
• Electricity
• Water, oil and natural gas
• Tourism industry
• Supermarkets
• Mass media
• Security
• Conservation
• Type of jobs which - if stopped - will interrupt the production process, material damage, and including the repair of production equipment.

How do I calculate overtime pay?

Hourly wages are calculated by multiplying 1/173 times the monthly wage. Workers who work overtime on ordinary work days should be paid 1,5 times the hourly wage for the first hour of overtime worked, and 2 times the hourly wage for second hours and each additional hour worked.

Do employers have to provide food for the workers who work overtime?

If the overtime exceed more than 3 hours, employers must provide meals and drinks of at least 1,400 calories to workers who work overtime

Night Work Compensation in Garment Sector

What is the compensation for night work?

Compensation is everything received by workers as financial rewards in exchange for work performed. Compensation for night work are financial rewards received by workers who perform night work

Are garment workers entitled to night work compensation?

Women workers who work at night (between the hours of 23:00 to 7:00) shall be provided with nutritious food and drinks, and must be guaranteed security and decency while at work. For women who work between 23:00 and 05:00 the employer is obliged to provide shuttle transportation.

Is the employer also required to pay a premium for night work?

There are no regulations specifically stipulating premium for night work. The prohibition and obligation on night work only applies to women workers and children under 18 years.

However, the employer can arrange the premium for night work in employment agreements, company regulations or collective bargaining agreements, as long as it does not violate Labor Law and harm labour rights.

Holidays and Weekly Rest Day Replacement in Garment

Can the garment employer replace holidays and weekly rest days of their employee?

In special circumtances, workers could work on weekly rest days and public holidays, however the regulations do not specifically stipulate holidays and weekly rest day replacement

Compensation To Work On Holidays and Weekly Rest Day in Garment

Is a garment worker entitled to a weekly rest day and national holiday?

Garment workers are entitled to a day-off after a week of work, both for workers who work 5 days a week and 6 days a week. In addition, garment workers are also entitled to a break on a national holiday.

Can a garment company employ workers during a weekly rest day/national holiday?

Employers can employ workers on a weekly rest day /national holiday on the basis of an agreement. If the workers agree/consent to work on a weekly rest day/national holiday, then employers may employ workers, but must pay overtime wages.

How to calculate overtime pay on a weekly rest day/national holiday?

For overtime performed on a weekly rest day/national public holiday for a 5-day work week:

a. the first eight hours: 2x the hourly wage;

b. the ninth hour: 3x the hourly wage;

c. the tenth and eleven hour: 4x the hourly wage.

For overtime performed on a weekly rest day/national holiday which falls on a weekly rest day for a 6-day work week:

a. the first seven hours: 2x the hourly wage

b. the eight hour: 3x the hourly wage;

c. the ninth and tenth hour: 4x the hourly wage.

If overtime occurs on a regular working day, then the overtime wage is 2x the wage per hour for the first hour until the seventh hour, 3x for eight hours, 4x for the ninth and tenth

What can be done by workers whose company is violating the regulation on compensation or overtime pay?

If a company is violating the regulation on compensation or overtime pay, a worker can take action as follows:

• negotiate with the company about the violation. If the negotiation is unsuccessful the worker can take the matter to tripartite level, involving mediation from the local manpower office.
• report the problem directly to the labor inspector who is available in the manpower office at the Provincial level.