TEMPO.CO, Jakarta – The DPR RI has officially passed Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation or Job Creation Perpu become law. Rules for severance received by employees who are victims of termination of employment (layoffs) became one of the highlights in the policy.
The rules for severance are listed in Article 156 paragraph 1 U of the Job Creation Perpu or what has now become Job Creation Law. The article states that severance pay shall be borne nine times by employers.
“In the event of layoffs, employers are obliged to pay money severance pay and/or service reward money and compensation money that should have been received,” reads the provisions of Article 156 paragraph (1) of the Job Creation Law.
Employees who have been laid off with a maximum of eight years of service or more will receive a severance pay of nine months’ wages. The following details the severance pay that employees who have been laid off under the Job Creation Law.
1. Employees who have only worked for less than one year, the amount of severance pay they get is only one month’s wages.
2. For employees with a period of one year or more but less than two years, they will receive a severance pay of two months’ wages.
3. Employees who have worked for two years but less than three years, will receive a severance pay of three months’ wages.
4. Meanwhile, those who have worked for three years or more but less than four years, receive severance pay of four months’ wages.
5. If the working period is four years or more but less than five years, get a severance pay of five months’ wages.
6. Meanwhile, for work period of five years or more but less than six years, get severance pay of six months wages.
7. For a period of six years but less than seven years, employees will receive a severance pay of seven months’ wages.
8. Employees with a working period of seven years or more, but less than eight years, will receive a severance pay of eight months’ wages.
9. With a service period of eight years or more, employees will receive nine months’ severance pay.
