Legal basis
THR (Tunjangan Hari Raya Keagamaan) is governed by PP 36/2021 on wages and Permenaker 6/2016. Each year the Minister of Manpower also issues a circular (Surat Edaran) reminding employers of the deadline for that year's Idul Fitri and setting up THR complaint posts.
Who is entitled
- Every employee with at least one month of continuous service — permanent (PKWTT) or fixed-term (PKWT), monthly or daily paid.
- Permanent employees whose employment ended within 30 days before the holiday are still entitled.
- Employees who move to another company in the same group keep their entitlement based on total service.
How much
| Service at the holiday | Amount |
|---|---|
| 12 months or more | 1 month of wage |
| 1 month to under 12 months | months of service ÷ 12 × 1 month of wage |
| Daily workers, 12 months or more | average monthly wage over the last 12 months |
| Daily workers, under 12 months | average monthly wage over the months worked |
| Piece-rate workers | average monthly wage over the last 12 months |
"Wage" is basic salary plus fixed allowances, or the clean wage if no allowances are paid. Variable allowances — meal, transport, attendance — are excluded. Contracts, company rules or collective agreements can give more, but never less.
Calculate your THR and the tax on it.
THR Calculator →When it must be paid
THR is paid once a year for the employee's religious holiday — Idul Fitri, Christmas, Nyepi, Vesak or Lunar New Year — unless the employer and employees agree a common date. It must be paid in full no later than 7 days (H-7) before the holiday. The government has repeatedly said it may not be paid in instalments.
Idul Fitri 1448 H is expected in March 2027; the exact date follows the government's sidang isbat, so THR for most Muslim employees will be due in early March 2027.
If THR is late or unpaid
- An employer that pays late owes a fine of 5% of the THR, payable to the employee — on top of the THR itself.
- Non-payment can lead to administrative sanctions: a written warning, restrictions on business activity, and temporary suspension of production.
- Employees can report to the Ministry of Manpower's THR command post (Posko THR) online or at the local manpower office.
How THR is taxed
THR is taxable income. Under TER, it is added to the month's salary and the combined gross is taxed at the TER rate for that total, so withholding jumps that month. December's annual recalculation corrects any over-withholding. The real tax on THR is simply your marginal Pasal 17 rate on it — typically 5% or 15% for most employees.
Check the Ministry of Manpower's annual THR circular for the current year's dates and any changes.