TaxSavvyID

Wage base for THR

THR dihitung dari gaji pokok atau ditambah tunjangan?

The situation

The THR wage is basic wage plus fixed allowances, or net wage if there are no allowances.

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

Variable items such as meal allowance tied to attendance are not included. Example: basic IDR 5 million and fixed position allowance IDR 1 million gives THR of IDR 6 million for a full year worker.

What to do

  1. List pay items.
  2. Include fixed allowances.
  3. Exclude variable allowances.
  4. Compute THR.

Using basic only when fixed allowances exist underpays THR.

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

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