When Rina, an office worker in Jakarta, received her Tunjangan Hari Raya (THR) before Eid, she immediately sent part of it to her parents in the village. For her family, THR was not just a financial bonus—it was a tradition that allowed them to celebrate the holidays with dignity.

THR (Religious Holiday Allowance) is a mandatory payment by employers in Indonesia, provided once a year before major religious holidays. Unlike performance bonuses, THR is a statutory right. All employees with at least one month of service, regardless of contract type (PKWT or PKWTT), are entitled to THR.

Legal Framework

Based on Minister of Manpower Regulation No. 6/2016, THR must be paid at least 7 days before the holiday. The amount is generally equivalent to one month’s wage for employees with 12 months of continuous service. For those with less than 12 months, THR is prorated according to their service period.

Real Case in Indonesia

In 2021, the Ministry of Manpower issued warnings to dozens of companies that delayed or failed to pay THR on time. Some faced legal sanctions and were required to compensate employees with fines. This case highlighted how seriously the government enforces THR compliance.

Best Practices for Foreign Employers

• Plan Ahead: Budget for THR early in financial planning.
• Pay on Time: Ensure payment at least 7 days before the relevant holiday.
• Communicate Clearly: Inform employees about calculation and payment dates.
• Respect Religious Diversity: Provide THR according to employees’ faith, not only the dominant religion.
• Avoid Disputes: Register policies in company regulations and consult with HR experts.

Conclusion

THR is more than a legal requirement—it is a cultural cornerstone in Indonesia’s workforce. Employers who honor this obligation not only ensure compliance but also strengthen trust, loyalty, and harmony in their organizations.

References

• Ministry of Manpower Regulation No. 6/2016 on Religious Holiday Allowance
• Circular Letter of Ministry of Manpower No. M/1/HK.04/IV/2022 on THR Payment