Summary of "INSPIRING PROFESSIONAL #SERIES 174: UU KIA 24: Cuti Melahirkan 6 Bulan & Dampaknya"

Summary of Business-Specific Content from Webinar

Topic: Indonesian KIA Law Number 4 of 2024 – Six-Month Maternity Leave & Its Impact on Payroll KPIs and Manpower Planning

Presenters

Mrs. Titi Agustina, S.E., CMT, CPRM Deputy Chairperson of Central Java Chamber of Commerce and Industry for Education and Culture, HR practitioner and former Indofood HR manager with 27 years experience.
Dr. Josef Teguh Santoso Founder of Toploker.com and University of Computer Science and Technology Semarang.
Mrs. Dra. Ari Widi Kristiani Daily Chairperson 2 of PPPTI.
Moderator: Siti Mulailatul Munawarah

Key Business Themes & Frameworks

1. Overview of KIA Law Number 4 of 2024

Maternity leave extended from 3 months (previous Manpower Law 13) to 6 months total:
- 1.5 months pre-birth (adjustable based on medical certificate)
- 4.5 months post-birth (adjustable based on medical certificate)
Wage payments during leave:
- 100% salary for first 2 months
- Minimum 75% salary for months 3 to 6
Fathers receive 2 days mandatory leave to accompany childbirth, extendable based on wife’s condition.
Prohibition on discrimination, demotion, or termination due to pregnancy or maternity leave.
Mandatory workplace lactation rooms and breastfeeding support facilities.
Law emphasizes work-family balance and protection of mother and child welfare during the first 1000 days of life.

2. HR Strategy and Organizational Impact

Policy Adaptation: HR must revise policies and SOPs to comply with the new law, including updates to company regulations (PP).
Payroll Impact:
- Employee costs increase significantly due to longer leave and wage payments.
- Example simulation:
  - Old system (3 months leave): ~IDR 37 million cost per employee
  - New system (6 months leave): ~IDR 62 million cost per employee (~64% increase)
- Suggested cost sharing with BPJS (Indonesian social security) to mitigate financial burden.
Productivity & Performance Management:
- Individual KPIs/QPIs should be adjusted pro-rata based on leave duration.
- Use team-based or rolling QPI models to distribute targets and maintain collective performance.
- Adjust evaluation periods and redistribute targets to accommodate leave.
Manpower Planning:
- Extended leave requires adaptive workforce planning.
- Use competency and skills matrix to identify internal talent pools and temporary replacements.
- Consider hiring contract or temporary workers to cover maternity leave.
- Succession and disaster planning for critical roles to avoid operational disruption.
Employee Engagement & Retention:
- Implement return-to-work parenting support programs to ease reintegration.
- Maintain open communication to prevent disengagement and retention issues.
Legal Compliance & Risk Management:
- Avoid discrimination lawsuits through clear policies and consistent application.
- Monitor medical certificates carefully to prevent misuse or falsification.
- HR must proactively manage relationships with owners and unions to implement policies smoothly.

3. Challenges & Recommendations for HR Practitioners

HR acts as a bridge and influencer between employees and management, often under pressure (“sandwich position”).
Need for soft skills and emotional intelligence (e.g., Certified Mind Therapy techniques) to positively influence stakeholders.
Importance of building trust and being on the same frequency with management and employees.
HR must be flexible and agile to handle policy changes and industrial relations.
Introverted HR professionals are encouraged to transform through community engagement and practice to improve communication skills.
HR should prepare for disputes related to rights violations and have strategies to manage industrial relations.

4. Q&A Highlights & Practical Insights

Company regulations (PP) must be updated to reflect the 6-month maternity leave law, but current PP may still show 3 months until revised.
Maternity leave applies regardless of length of service; no minimum tenure required.
Annual leave and maternity leave are separate; maternity leave should not deduct from annual leave entitlement.
Sanctions for non-compliance include verbal and written warnings; disputes can escalate to industrial relations courts.
Allowances during leave depend on whether they are fixed or variable; variable allowances tied to attendance may not be paid during leave.
Law applies broadly to all employment types, including PT (companies), CVs, and potentially civil servants (subject to specific regulations).
HR must carefully manage payroll, manpower planning, and performance metrics to balance compliance with business productivity.

Key Metrics & KPIs

Payroll cost increase: +64% due to extended maternity leave duration.
Wage payment during leave: 100% for first 2 months, minimum 75% for months 3-6.
Leave duration: Up to 6 months total maternity leave.
Temporary replacement duration: Typically 6 months contract aligned with leave period.
Work hours and overtime: Overtime capped at 4 hours/day to avoid productivity loss and fatigue.
Performance measurement: Use pro-rata KPI adjustment and team-based QPI to maintain output.
Employee engagement: Retention and return-to-work support programs recommended.

Actionable Recommendations

Revise company policies and SOPs to align with KIA Law 4/2024.
Conduct payroll simulations to budget for increased maternity leave costs.
Collaborate with BPJS for possible cost-sharing mechanisms.
Implement adaptive manpower planning using competency matrices and talent pools.
Develop temporary replacement plans for maternity leave coverage.
Adjust performance management systems to incorporate prorated and team-based KPIs.
Enhance communication and engagement programs for employees on leave and returning to work.
Train HR teams on influencing skills and emotional intelligence to manage stakeholder relationships.
Monitor medical documentation rigorously to prevent abuse of leave policies.
Prepare for industrial relations challenges with clear dispute resolution mechanisms.

Summary

This webinar provided a comprehensive framework for HR professionals and organizational leaders to understand and implement the extended six-month maternity leave mandated by Indonesia’s KIA Law Number 4 of 2024. It emphasized balancing legal compliance with maintaining productivity, managing increased payroll costs, and adapting workforce and performance management systems. The session also highlighted the strategic role of HR as a business partner and influencer, equipped with both technical and interpersonal skills to navigate policy changes and stakeholder management effectively.

Sources / Presenters

Mrs. Titi Agustina, Deputy Chairperson Central Java Chamber of Commerce and Industry for Education and Culture
Dr. Josef Teguh Santoso, Founder of Toploker.com and University of Computer Science and Technology Semarang
Mrs. Dra. Ari Widi Kristiani, Daily Chairperson 2 of PPPTI
Moderator: Siti Mulailatul Munawarah