If your PPh 21 deduction seems to change for no reason — tiny one month, huge the next, and something odd in December — you are seeing TER at work. It is not a new tax. It is a new way of spreading the same tax across the year.
The one-line version
January to November: this month's gross × one rate from a table. December: work out the real tax for the whole year and subtract what was already taken.
A normal month
Budi is single (TK/0, so table A) and earns Rp8,000,000 a month. His employer also pays Rp363,200 of BPJS premiums for him, so his monthly gross for TER is Rp8,363,200. In table A that falls in the 1.5% band, so each month he pays:
| Item | Amount |
|---|---|
| Monthly gross for TER | Rp8,363,200 |
| TER rate (category A) | 1.5% |
| PPh 21 withheld | Rp125,448 |
December catches up
Budi's real tax for the year, using the full formula with biaya jabatan, BPJS and PTKP, is Rp1,923,000. Eleven months of TER took Rp1,379,928. So December's PPh 21 is Rp543,072 — more than four times a normal month. Nothing is wrong; TER just rounds most salaries down.
Now add THR
Suppose Budi gets one month's salary as THR in March. That month's gross doubles to Rp16,363,200, which sits in the 7% band, so March's withholding jumps to Rp1,145,424 — nine times normal.
But THR only raises his annual tax to Rp2,303,000. By December, TER has already taken Rp2,399,904. So instead of paying more in December, Budi gets Rp96,904 back on his December payslip.
Takeaway: a big THR or bonus month over-withholds, and December gives it back. Steady pay under-withholds slightly, and December collects it.
See your own monthly rate and December figure.
Use the PPh 21 TER Calculator →Which table am I on?
- A — TK/0, TK/1, K/0
- B — TK/2, TK/3, K/1, K/2
- C — K/3
The full tables are in our TER guide.
Frequently asked questions
Does TER mean I pay more tax?
No. Your annual tax is still calculated with the Pasal 17 rates in December. TER only changes the monthly split.
Why did I get a PPh 21 refund in December?
Usually because a THR or bonus month was withheld at a high TER rate. The December recalculation returns the excess.