THR in Indonesia: Holiday Allowance Rules and Calculator
THR is Indonesia's religious holiday allowance: who qualifies, how one month's wage is worked out, the seven-day deadline, and a calculator for your own staff.
References (2)
- Permenaker No. 6 Tahun 2016 tentang Tunjangan Hari Raya Keagamaan bagi Pekerja/Buruh di Perusahaan — the standing instrument. Article 2 sets eligibility, Article 3 the amount and what counts as one month's wage, Article 4 the effect of a more generous contract or practice, Article 5(4) the deadline, Article 6 payment in money, Article 7 dismissal within 30 days, Article 10 the late-payment fine, Article 11 administrative sanctions
- Permenaker No. 6 Tahun 2016, Article 12 — revokes the predecessor, Permenaker No. PER.04/MEN/1994
THR — Tunjangan Hari Raya Keagamaan, the religious holiday allowance — is a payment every employer in Indonesia must make to every qualifying employee once a year, before their religious holiday. It is not a bonus in the sense of being discretionary. It is an obligation with a deadline, a formula, and a penalty for missing it.
It is often described as a thirteenth month of pay. That is a fair shorthand for a full-year employee and misleading for everyone else, because the amount is proportionate to service and the wage it is calculated on is not always the one people assume.
The rules below come from the instrument that governs them, Permenaker No. 6 of 2016, which replaced the 1994 regulation and is still the standing rule. Article numbers are given so each point can be checked.
Who qualifies
Anyone with one month of continuous service or more, under Article 2(1). Length of service then decides the amount: a full month’s wage at twelve months, proportionate below that.
It applies to both fixed-term contracts (PKWT) and indefinite ones (PKWTT), under Article 2(2).
Two situations catch employers out, and both are in the regulation:
- An employee on an indefinite contract whose employment the employer ends from 30 days before the holiday is still entitled to that year’s THR (Article 7(1)–(2)). Terminating shortly before the holiday does not avoid the payment for an employee on an indefinite contract.
- An employee transferred from another company with continuous service is entitled at the new employer, if the previous one has not already paid (Article 8).
That protection does not extend to a fixed-term contract that ends before the holiday (Article 7(3)).
How much, and on what wage
| Description | Amount |
|---|---|
| One month's wage, as defined below | IDR 8,000,000 |
| Months of continuous service | 7 |
| Proportion of a year (7 ÷ 12) | 0.5833 |
| THR payable | IDR 4,666,667 |
Twelve months of continuous service or more earns one month’s wage. Below twelve months it is proportionate: months of service divided by twelve, multiplied by one month’s wage. Both are in Article 3(1). To work it out for one employee, with the latest date to pay, use the THR calculator.
One month's wage is not always basic pay alone
Article 3(2) defines one month’s wage as either the clean wage, a wage with no allowances, or basic pay including fixed allowances. Where employees are paid a basic plus fixed allowances, those allowances form part of the figure THR is calculated on. Advice that THR is “basic salary only” is wrong for those employees, and any shortfall is owed to them.
For casual daily workers (harian lepas), Article 3(3) calculates one month’s wage as the average received over the last twelve months before the holiday, or the monthly average over the period actually worked where that is shorter.
When, and what happens if it is late
The deadline is at the latest seven days before the employee’s religious holiday, under Article 5(4). Each employee’s entitlement follows their own religion — Idul Fitri, Christmas, Nyepi, Waisak or Imlek — although Article 5(3) lets a company agree otherwise with its workforce, recorded in the employment agreement, company regulations or a collective agreement.
| Paid late | Not paid | |
|---|---|---|
| What applies | A fine of 5% of the total THR, from the end of the payment deadline (Article 10(1)) | Administrative sanctions (Article 11) |
| Does it discharge the obligation | No. The THR is still owed in full on top of the fine (Article 10(2)) | No |
| Where the money goes | To worker welfare, as set out in company regulations or the collective agreement (Article 10(3)) | Not applicable |
The destination of the fine is worth noting. Under Article 10(3) it is managed and used for employee welfare, as set out in the company’s own regulations or collective agreement.
Where a contract or a custom pays more
Article 4 is short. Where an employment agreement, company regulations, a collective agreement or an established practice provides more than the regulation requires, the higher amount is what is payable.
The last of those is the one to watch. A company that has paid a full month to everyone regardless of service, or added a fixed sum each year, may have created an expectation that binds it. The question to ask before reducing a payment is not only what the regulation requires, but what the company has actually done in previous years.
Two practical points
THR must be paid in money, in rupiah (Article 6).
It is also taxable. THR counts as part of the employee’s gross income for income tax (PMK 168/2023, Article 5(3)(b)), so the income tax withheld in the month it is paid is higher than usual. That is a payroll calculation rather than a manpower one. Where staff are employed through an employer of record, THR is one of the statutory benefits it handles.
For the wider question of how the holiday period affects working hours, collective leave and office closures, that is a separate subject with its own rules.