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Company rule higher than THR minimum

Perusahaan kami kasih THR 2 kali gaji. Itu boleh?

The situation

Yes. The law sets a minimum. Contracts, company rules or agreements can give more, and then the higher amount applies.

The law

  • Minister of Manpower Regulation 6/2016 on religious holiday allowance (THR): Workers with 1 month or more of service get THR; 12 months or more get 1 month's wage, less get a pro rata share; pay at least 7 days before the holiday

What it means for you

Keep the rule consistent and written to avoid disputes. The extra amount is also taxable. Example: 2 months' wage of IDR 8 million each gives THR of IDR 16 million, all of it subject to PPh 21 in that month.

What to do

  1. Write the policy in company rules.
  2. Apply it consistently.
  3. Include in PPh 21.
  4. Budget for it.

Promised THR becomes a binding entitlement.

We can do this for youReligious holiday allowance (THR): who qualifies, the amount, timing and tax: IDR 1.000.000

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