Why TER was introduced
Before 2024, payroll teams projected each employee's annual income every month, applied the PTKP and Pasal 17 rates, and divided by twelve. It was accurate but laborious, and it went wrong whenever pay changed. PP 58/2023 and PMK 168/2023 replaced this with TER — tarif efektif rata-rata, the average effective rate. For January to November, the employer simply looks up one rate in a table and multiplies it by the month's gross pay.
TER does not change how much tax you owe for the year. It only changes how the tax is spread across the months.
The monthly calculation
- Find your category. Your PTKP status on 1 January decides it: A for TK/0, TK/1 and K/0; B for TK/2, TK/3, K/1 and K/2; C for K/3.
- Add up the month's gross. Salary, all allowances, overtime, bonuses, THR, taxable benefits in kind, and the premiums the employer pays for your JKK, JKM and BPJS Kesehatan. No deductions are taken off.
- Look up the rate for that gross in your category's table and multiply. That is the month's PPh 21.
The December recalculation
In the final tax period — December for full-year employees, or the month an employee leaves — the employer does the traditional annual calculation: total gross for the year, minus biaya jabatan, JHT and JP contributions, minus PTKP, then Pasal 17 rates. December's PPh 21 is the annual tax minus everything withheld in the earlier months. If TER withheld too much, the employer returns the excess to you with your December pay.
See your own monthly rate and December figure.
PPh 21 TER Calculator →Common payslip surprises
"My THR month was taxed at 15%"
TER looks at one month in isolation. Doubling a month's gross with THR can move you from, say, 2.5% to 9% or more for that month. The excess is corrected in December.
"December took a huge chunk"
For employees whose pay sits just inside a TER band, TER slightly under-withholds each month, and December catches up. Pay rises during the year make this worse, because earlier months were withheld at lower rates.
"I got a refund in December"
Large one-off payments earlier in the year, or a mid-year drop in pay, often mean TER over-withheld. A refund in December is normal.
"I changed jobs and owe tax in my SPT"
Each employer calculates PTKP and the lower tax brackets as if it were your only employer. With two jobs in a year, you end up under-taxed and settle the difference when filing your annual SPT.
The three TER tables
Bands begin one rupiah above the previous upper limit. Rates top out at 34% for very high monthly earnings.
Category A — TK/0, TK/1, K/0
| Category A — monthly gross | TER rate |
|---|---|
| Up to Rp5,400,000 | 0% |
| Rp5,400,001 – Rp5,650,000 | 0.25% |
| Rp5,650,001 – Rp5,950,000 | 0.5% |
| Rp5,950,001 – Rp6,300,000 | 0.75% |
| Rp6,300,001 – Rp6,750,000 | 1% |
| Rp6,750,001 – Rp7,500,000 | 1.25% |
| Rp7,500,001 – Rp8,550,000 | 1.5% |
| Rp8,550,001 – Rp9,650,000 | 1.75% |
| Rp9,650,001 – Rp10,050,000 | 2% |
| Rp10,050,001 – Rp10,350,000 | 2.25% |
| Rp10,350,001 – Rp10,700,000 | 2.5% |
| Rp10,700,001 – Rp11,050,000 | 3% |
| Rp11,050,001 – Rp11,600,000 | 3.5% |
| Rp11,600,001 – Rp12,500,000 | 4% |
| Rp12,500,001 – Rp13,750,000 | 5% |
| Rp13,750,001 – Rp15,100,000 | 6% |
| Rp15,100,001 – Rp16,950,000 | 7% |
| Rp16,950,001 – Rp19,750,000 | 8% |
| Rp19,750,001 – Rp24,150,000 | 9% |
| Rp24,150,001 – Rp26,450,000 | 10% |
| Rp26,450,001 – Rp28,000,000 | 11% |
| Rp28,000,001 – Rp30,050,000 | 12% |
| Rp30,050,001 – Rp32,400,000 | 13% |
| Rp32,400,001 – Rp35,400,000 | 14% |
| Rp35,400,001 – Rp39,100,000 | 15% |
| Rp39,100,001 – Rp43,850,000 | 16% |
| Rp43,850,001 – Rp47,800,000 | 17% |
| Rp47,800,001 – Rp51,400,000 | 18% |
| Rp51,400,001 – Rp56,300,000 | 19% |
| Rp56,300,001 – Rp62,200,000 | 20% |
| Rp62,200,001 – Rp68,600,000 | 21% |
| Rp68,600,001 – Rp77,500,000 | 22% |
| Rp77,500,001 – Rp89,000,000 | 23% |
| Rp89,000,001 – Rp103,000,000 | 24% |
| Rp103,000,001 – Rp125,000,000 | 25% |
| Rp125,000,001 – Rp157,000,000 | 26% |
| Rp157,000,001 – Rp206,000,000 | 27% |
| Rp206,000,001 – Rp337,000,000 | 28% |
| Rp337,000,001 – Rp454,000,000 | 29% |
| Rp454,000,001 – Rp550,000,000 | 30% |
| Rp550,000,001 – Rp695,000,000 | 31% |
| Rp695,000,001 – Rp910,000,000 | 32% |
| Rp910,000,001 – Rp1,400,000,000 | 33% |
| Above Rp1,400,000,000 | 34% |
Category B — TK/2, TK/3, K/1, K/2
| Category B — monthly gross | TER rate |
|---|---|
| Up to Rp6,200,000 | 0% |
| Rp6,200,001 – Rp6,500,000 | 0.25% |
| Rp6,500,001 – Rp6,850,000 | 0.5% |
| Rp6,850,001 – Rp7,300,000 | 0.75% |
| Rp7,300,001 – Rp9,200,000 | 1% |
| Rp9,200,001 – Rp10,750,000 | 1.5% |
| Rp10,750,001 – Rp11,250,000 | 2% |
| Rp11,250,001 – Rp11,600,000 | 2.5% |
| Rp11,600,001 – Rp12,600,000 | 3% |
| Rp12,600,001 – Rp13,600,000 | 4% |
| Rp13,600,001 – Rp14,950,000 | 5% |
| Rp14,950,001 – Rp16,400,000 | 6% |
| Rp16,400,001 – Rp18,450,000 | 7% |
| Rp18,450,001 – Rp21,850,000 | 8% |
| Rp21,850,001 – Rp26,000,000 | 9% |
| Rp26,000,001 – Rp27,700,000 | 10% |
| Rp27,700,001 – Rp29,350,000 | 11% |
| Rp29,350,001 – Rp31,450,000 | 12% |
| Rp31,450,001 – Rp33,950,000 | 13% |
| Rp33,950,001 – Rp37,100,000 | 14% |
| Rp37,100,001 – Rp41,100,000 | 15% |
| Rp41,100,001 – Rp45,800,000 | 16% |
| Rp45,800,001 – Rp49,500,000 | 17% |
| Rp49,500,001 – Rp53,800,000 | 18% |
| Rp53,800,001 – Rp58,500,000 | 19% |
| Rp58,500,001 – Rp64,000,000 | 20% |
| Rp64,000,001 – Rp71,000,000 | 21% |
| Rp71,000,001 – Rp80,000,000 | 22% |
| Rp80,000,001 – Rp93,000,000 | 23% |
| Rp93,000,001 – Rp109,000,000 | 24% |
| Rp109,000,001 – Rp129,000,000 | 25% |
| Rp129,000,001 – Rp163,000,000 | 26% |
| Rp163,000,001 – Rp211,000,000 | 27% |
| Rp211,000,001 – Rp374,000,000 | 28% |
| Rp374,000,001 – Rp459,000,000 | 29% |
| Rp459,000,001 – Rp555,000,000 | 30% |
| Rp555,000,001 – Rp704,000,000 | 31% |
| Rp704,000,001 – Rp957,000,000 | 32% |
| Rp957,000,001 – Rp1,405,000,000 | 33% |
| Above Rp1,405,000,000 | 34% |
Category C — K/3
| Category C — monthly gross | TER rate |
|---|---|
| Up to Rp6,600,000 | 0% |
| Rp6,600,001 – Rp6,950,000 | 0.25% |
| Rp6,950,001 – Rp7,350,000 | 0.5% |
| Rp7,350,001 – Rp7,800,000 | 0.75% |
| Rp7,800,001 – Rp8,850,000 | 1% |
| Rp8,850,001 – Rp9,800,000 | 1.25% |
| Rp9,800,001 – Rp10,950,000 | 1.5% |
| Rp10,950,001 – Rp11,200,000 | 1.75% |
| Rp11,200,001 – Rp12,050,000 | 2% |
| Rp12,050,001 – Rp12,950,000 | 3% |
| Rp12,950,001 – Rp14,150,000 | 4% |
| Rp14,150,001 – Rp15,550,000 | 5% |
| Rp15,550,001 – Rp17,050,000 | 6% |
| Rp17,050,001 – Rp19,500,000 | 7% |
| Rp19,500,001 – Rp22,700,000 | 8% |
| Rp22,700,001 – Rp26,600,000 | 9% |
| Rp26,600,001 – Rp28,100,000 | 10% |
| Rp28,100,001 – Rp30,100,000 | 11% |
| Rp30,100,001 – Rp32,600,000 | 12% |
| Rp32,600,001 – Rp35,400,000 | 13% |
| Rp35,400,001 – Rp38,900,000 | 14% |
| Rp38,900,001 – Rp43,000,000 | 15% |
| Rp43,000,001 – Rp47,400,000 | 16% |
| Rp47,400,001 – Rp51,200,000 | 17% |
| Rp51,200,001 – Rp55,800,000 | 18% |
| Rp55,800,001 – Rp60,400,000 | 19% |
| Rp60,400,001 – Rp66,700,000 | 20% |
| Rp66,700,001 – Rp74,500,000 | 21% |
| Rp74,500,001 – Rp83,200,000 | 22% |
| Rp83,200,001 – Rp95,600,000 | 23% |
| Rp95,600,001 – Rp110,000,000 | 24% |
| Rp110,000,001 – Rp134,000,000 | 25% |
| Rp134,000,001 – Rp169,000,000 | 26% |
| Rp169,000,001 – Rp221,000,000 | 27% |
| Rp221,000,001 – Rp390,000,000 | 28% |
| Rp390,000,001 – Rp463,000,000 | 29% |
| Rp463,000,001 – Rp561,000,000 | 30% |
| Rp561,000,001 – Rp709,000,000 | 31% |
| Rp709,000,001 – Rp965,000,000 | 32% |
| Rp965,000,001 – Rp1,419,000,000 | 33% |
| Above Rp1,419,000,000 | 34% |
Other workers
- Non-permanent and daily workers use the daily TER: 0% up to Rp450,000 a day and 0.5% from Rp450,001 to Rp2,500,000.
- Non-employees such as freelancers, consultants and speakers are withheld at Pasal 17 rates on 50% of their gross fee.
- Pensioners receiving monthly pensions are withheld under the same TER tables, with biaya pensiun deducted in the annual calculation.
Tables from PP 58/2023; procedures from PMK 168/2023. Check DJP for updates.