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

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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

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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.

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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.

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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.

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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.

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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