Jakarta, ThedailyID — Companies in Indonesia cannot deduct government-designated collective holidays from employees’ annual leave entitlement. Law No. 27 of 2026 on Employment Protection introduced this rule, which took effect on October 28, 2026.
“Where a company implements collective leave designated by the central government, its implementation must not reduce the annual leave entitlement of workers or laborers,” Article 118 paragraph (6) of the law states.
Article 118 paragraph (1) requires employers to provide workers with rest periods and leave. Meanwhile, paragraph (5) guarantees at least 12 working days of annual leave after employees complete 12 consecutive months of service.
For 2027, the government has designated 18 national public holidays and eight collective leave days. Under the new law, companies cannot deduct those eight collective holidays from employees’ annual leave entitlement.
Here is the official 2027 collective holiday schedule:
- February 5 (Friday): Chinese New Year 2578 Kongzili.
- March 9, 12, and 15 (Tuesday, Friday, and Monday): Eid al-Fitr 1448 Hijri.
- March 25 (Thursday): Good Friday.
- May 18 (Tuesday): Eid al-Adha 1448 Hijri.
- May 19 (Wednesday): Vesak Day 2571 BE.
- December 24 (Friday): Christmas Eve.
The regulation provides clearer protection for employees’ annual leave rights. As a result, workers can retain their minimum 12-day annual leave entitlement even when companies follow the government’s collective holiday schedule.
