TaxSavvyID

Paying THR in instalments

Bisa bayar THR dicicil?

The situation

The rule requires THR to be paid in full by the deadline. Instalments after the deadline count as late.

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
  • PP 36/2021 on wages, as amended by PP 51/2023: An employer that pays THR late pays a fine of 5 percent of the THR due, on top of the THR itself

What it means for you

In past years the Minister issued circulars on THR; some allowed agreements in hard times, but the general rule is full payment. Check this year's circular.

What to do

  1. Plan cash early.
  2. Check the yearly circular.
  3. Pay in full on time.
  4. If impossible, talk to workers and the labour office.

Late amounts attract the 5 percent fine.

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

Related