This is Employee Service Award Money in the Job Creation Perppu.

The Indonesian government issued Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation on Friday, December 30, 2022.

This Perppu replaces Law Number 11 of 2020 concerning Job Creation, which the Constitutional Court (MK) declared conditionally unconstitutional in 2021.

The Job Creation Perppu re-regulates several matters, one of which concerns severance pay and service awards given by employers to employees in the event of termination of employment (PHK).

"In the event of termination of employment, the employer is obligated to pay severance pay and/or service awards and compensation for rights that should have been received," reads Article 81 paragraph 47 of the Job Creation Perppu, which amends Article 156 of Law Number 13 of 2003 concerning Manpower.

The following details the amount of service awards for employees affected by PHK under the Job Creation Perppu:

* 3 (three) years or more but less than 6 (six) years of service: 2 (two) months' salary
* 6 (six) years or more but less than 9 (nine) years of service: 3 (three) months' salary
* 9 (nine) years or more but less than 12 (twelve) years of service: 4 (four) months' salary
* 12 (twelve) years or more but less than 15 (fifteen) years of service: 5 (five) months' salary
* 15 (fifteen) years or more but less than 18 (eighteen) years of service: 6 (six) months' salary
* 18 (eighteen) years or more but less than 21 (twenty-one) years of service: 7 (seven) months' salary
* 21 (twenty-one) years or more but less than 24 (twenty-four) years of service: 8 (eight) months' salary
* 24 (twenty-four) years or more of service: 10 (ten) months' salary

Service awards are only given to employees who are victims of PHK and have worked for a minimum of 3 years, with an amount of 2 times the monthly salary. Employees with more than 24 years of service receive a maximum of 10 times their monthly salary.