New Labor Law Says Joint Leave Cannot Cut Annual Leave
The new law caps PKWT contracts at four years, down from a previous maximum of five years.
Law No. 27 of 2026 on Employment Protection took effect on Oct. 28 and stipulates that joint leave set by the central government may not reduce workers' annual leave entitlement. The rule is set out in Article 118 paragraph 6. The same law also changes the maximum length of Perjanjian Kerja Waktu Tertentu, or PKWT, to two years, with two extensions of up to one year each, for a total of four years. Previously, PKWT contracts could run for up to five years. According to Antara, the measure follows Constitutional Court Decision No. 168/PUU-XXII 2023, was signed by President Prabowo Subianto, and is available to the public through JDIH Kementerian Sekretariat Negara.