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Indonesia’s 60% Salary for Laid-Off Workers: A Temporary Relief?

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Algo Research Team

Economics | Feb 19, 2025 | Views: 333

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Key Summary:

  • Laid-off employees to receive 60% of their monthly salary for 6 months
  • But, there is a maximum salary cap at IDR 3 million per month
  • Only provides temporary financial relief for those effected

President Prabowo Subianto has enacted a new regulation to protect workers affected by layoffs under the Jaminan Kehilangan Pekerjaan (JKP) program.


Effective February 7, 2025, the policy ensures that laid-off employees will receive 60% of their monthly salary for up to six months but with a caveat.

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