TaxSavvyID

THR for contract workers

Pekerja kontrak (PKWT) dapat THR?

The situation

Yes. Contract workers with at least 1 month of service are entitled to THR.

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

The rule covers permanent and fixed term workers. If a contract ends shortly before the holiday, check the rule on entitlement. Example: 6 months PKWT on IDR 5 million: IDR 2,500,000.

What to do

  1. Include contract workers in the THR list.
  2. Compute pro rata.
  3. Pay on time.
  4. Keep records.

Leaving out contract staff leads to complaints.

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

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