Blog

Employers all around the world are facing the far-reaching consequences of the ongoing COVID-19 pandemic – perhaps one of the most profound being the impact on workers’ and their well-being. Even before the pandemic, millions of lower- and middle-income workers in Indonesia struggled with emergency savings to cover for unexpected expenses and basic needs. These challenges have only been exhilarated by potential loss of income and higher employee stress driving employees to focus more on their financial issues instead of their jobs.

Most people believe that overall well-being can only be achieved through good nutrition, well-balanced diet and exercise. They are wrong. According to the Health Living Index study by AIA, money is the top source of stress factor in Indonesia. Indonesian household finances cause them more stress than work, relationships, or even their physical health.

In Indonesia, 75% of the lower and middle income workers live paycheck to paycheck — every single month. With less than Rp 500.000 in savings, the majority of households are just one missed paycheck away from falling into a vicious cycle of debt as unexpected expenses force them to turn to payday loans, short term credit or overdraft.