2026 Civil Service Holiday Allowance Disbursed; Family Allowances, Position Allowances, and Tax Covered by State Budget

Indonesia’s government commenced disbursement of the 2026 Tunjangan Hari Raya (Holiday Allowance) for civil servants on 26 February 2026.

The disbursement of the 2026 holiday allowance is being conducted in phases, targeting members of the civil service (PNS), contract-based workers (PPPK), TNI soldiers, National Police (Polri), and retirees from their respective agencies.

With a 2026 budget allocation of Rp55 trillion, the government has allocated funds to three components. According to the Coordinating Minister for Economic Affairs Airlangga Hartarto: “Components paid at full 100 per cent include basic salary, family allowances, food allowances, and position/performance allowances in accordance with applicable regulations.”

The 2026 holiday allowance differs from the 13th-month salary, which will be distributed in June 2026.

According to Inge Diana Rismawati, Director of Outreach, Services, and Community Relations at the Directorate General of Taxes, the government uses the State Budget (APBN) to cover income tax for civil servants. “The holiday allowance for civil servants, TNI, and Polri is not exempt from income tax deduction; it is still subject to income tax, but because the source comes from the state budget, all such income tax is covered by the government,” she explained.

Compared to the previous year, the deficit has increased significantly, whereas February 2025 stood at only Rp30.7 trillion. For this reason, fiscal authorities aim to boost tax collection in the first months of 2026. “Tax collection in the first two months of 2026 grew 30 per cent. We will ensure this remains stable going forward,” officials stated.

Furthermore, fiscal pressure on the state budget has intensified due to rising global oil prices resulting from the Israel-US versus Iran conflict. This has prompted budget authorities to consider reducing several budget allocations.