THR Calculator: Indonesia's Religious Holiday Allowance
Work out the THR an employee is owed from the monthly wage and the length of service.
The rule
THR (tunjangan hari raya) is a mandatory allowance paid before a religious holiday. Under Permenaker 6/2016, every employee with at least one month of continuous service is entitled to it. An employee with 12 months of service or more receives one month of wages; an employee with one to under 12 months receives a pro rata amount, the months of service divided by 12 and multiplied by one month of wages. "Wages" here means basic salary plus fixed allowances.
Example
With a monthly wage of IDR 8,000,000: after 18 months the THR is IDR 8,000,000; after 6 months it is IDR 4,000,000.
When and for which holiday
THR is paid once a year, for the employee's own religious holiday (for example Eid al-Fitr, Christmas, Nyepi, Vesak or Chinese New Year), unless the employment agreement sets otherwise, and no later than seven days before that holiday. A contract or company regulation may give more than this minimum, never less. A permanent employee whose employment ends within 30 days before the holiday is still entitled to THR. Employees whose THR is late or unpaid can report to the local manpower office.
Frequently asked questions
Do contract (PKWT) employees get THR?
Yes. Any employee with at least one month of continuous service is entitled, contract employees included.
Is THR taxed?
Yes. THR is taxable income for PPh 21; the month it is paid has a higher TER withholding. The salary calculator explains the method.
Do foreign employees get THR?
The regulation applies to employees in Indonesia without a nationality condition, so the same rule is the starting point for foreign employees; check the employment contract as well.