Answer ... The minimum wage applies to probationary, regular and contract employees, regardless of whether they are paid on a daily or monthly basis. The applicable minimum wage varies depending on the location of the business. There are different minimum wages for each province and, if applicable, each district/city. Minimum wages are reviewed and determined annually.

Answer ... In accordance with Government Regulation 35/2021, overtime is payable at a rate of 1.5 times the hourly wage for the first hour and twice the hourly wage thereafter. Overtime pay is calculated based on an employee’s monthly wage, with the hourly wage being equal to 1/173 of the monthly wage. Government Regulation 35/2021 also specifies overtime pay for work done during rest days (eg, Saturday and Sunday), depending on whether the employee is on a six-day or five-day working week.

A company must pay overtime to all employees, with the exception of certain categories of employees who are not entitled to receive overtime payment. These employees are, literally translated, employees with responsibilities as thinkers, planners, executors and controllers of the company’s operations whose working hours cannot be limited and who receive higher salaries. It is widely thought that employees with these responsibilities are those at or above management level or professional employees. These special categories of employees should be specified in the employment contract, company regulations (work rules) or collective labour agreement. Otherwise, all employees will be entitled to overtime pay.

Answer ... Employees are entitled to minimum annual leave of 12 days per year insofar as the employee has worked for 12 months consecutively. The employer can decide a suitable time for the employee to take his or her leave. These provisions also apply to fixed-term employees.

The implementation of annual leave should be specified in the employment contract, company regulation or collective labour agreement.

Answer ... The Labour Law stipulates that an employer is prohibited from terminating an employee who is absent because he or she is sick, provided that the employee provides a doctor’s note. If the employee suffers from prolonged sickness, the employer must pay:

• full wages for the first four months of sick leave;
• 75% of full wages for the second four months;
• 50% for the third four months; and
• 25% thereafter until the employer terminates the employee.

Further, female employees are not obliged to work on the first and second days of menstruation if they feel sick and notify the employer. However, this provision should be further regulated in the employment agreement, company regulations (work rules) or collective labour agreement.

Answer ... The labour laws do not specifically regulate the retirement age. Provisions relating to retirement age can be found in several regulations. The retirement age must be stipulated in the employment contract, company regulations (work rules) or collective labour agreement. In practice, employers commonly follow the provisions of Government Regulation 45/2015 on the Organisation of Retirement Security Programme. This regulation stipulates that as from 1 January 2019, the retirement age is 57 years old and will rise by an additional year every three years until it reaches the age of 65 in 2043.