SPCAAM president J Solomon cited “Belanjawanku”, a study by EPF, which revealed that people in the Klang Valley spend close to an entire month’s salary on annual social and festive activities.

He said Indonesia set a “remarkable precedent”, mandating a month’s salary as festival aid to all employees.

“This practice has been especially beneficial to low-income workers, ensuring that the spirit of the festivities remains undiminished by financial concerns.

“Many companies that operate here also operate in Indonesia, including government-linked companies (GLCs), and are paying one month’s salary to workers in Indonesia (for this purpose),” he said in a statement.

Solomon said last year, the Selangor government provided a month’s salary as festival aid to its employees to address the rising cost of living, especially for those who fall within the B40 and M40 income groups.

“After sustained advocacy by the National Union of Bank Employees (NUBE), banks also provided similar aid to their employees in 2023.

“However, this year’s retraction of this support by the banks, despite prior agreements, is both surprising and disconcerting,” he said.

He added that the action by some employers in Malaysia in retracting such aid appears to undermine the fundamental basic employee benefits and Prime Minister Anwar Ibrahim’s clear directive on the importance of workers’ welfare.

“This is especially true when many of these companies, including GLCs, enjoy substantial profits, a portion of which could be shared as festival aid,” he said.

“We must safeguard the workers’ right to a fulfilling life, which includes celebrating our cultural richness without the burden of financial strain,” he added.