Politics · Indonesia · 1 day ago
Indonesia's New Labour Law Protects Annual Leave From Collective Leave
Indonesia's new labour law took effect on 28 October 2026 and replaced the country's 2003 labour law.
Workers who have completed 12 consecutive months of work are entitled to 12 working days of annual leave.
Government-set collective leave does not count against annual leave, under the new rules.
The law also provides at least three months of maternity leave, with a possible three-month extension in certain documented cases.
Workers dismissed from their jobs can receive compensation for annual leave they have not used and that has not expired.
Detailed rules are due within one year of the law's enactment.
Indonesia’s Law No. 27 of 2026 says government-designated collective leave does not reduce workers’ annual leave.
The law took effect on 28 October 2026, the day it was promulgated.
Workers who have completed 12 consecutive months of work are entitled to 12 working days of annual leave.
Employers must provide rest time and leave, and can face criminal penalties for failing to do so.
The law also sets rules for maternity leave, leave to accompany a spouse during childbirth, and compensation for unused annual leave after termination.
- Who
- Workers and employers in Indonesia.
- What
- A new law protects annual leave from being reduced by government-designated collective leave.
- When
- The law took effect on 28 October 2026.
- Where
- Indonesia.
- Why
- Not stated
This story does not have two clearly opposing sides.
Law No. 27 of 2026 was promulgated and took effect.
CNBC Indonesia reported on the law’s leave provisions.
- Law
- No. 27 of 2026 on Employment Protection
- Effective date
- 28 October 2026
- Annual leave entitlement
- 12 working days after 12 consecutive months of work
- Collective leave
- Does not reduce annual leave
- 2027 holidays
- 18 national holidays and 8 collective leave days, according to a decree by three ministers
What people are saying
In the event that a company applies collective leave determined by the Central Government, its implementation does not reduce the annual leave rights of Workers/Laborers.