Airlangga: Festive Holiday Allowance Cannot Be Paid in Instalments, Must Be Distributed by H-7 Eid

Jakarta — Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has emphasised that Tunjangan Hari Raya (THR/Festive Holiday Allowance) for private sector workers must be paid in full no later than H-7 Eid and cannot be paid in instalments.

The allowance is equivalent to one month’s salary for workers with a minimum of one year of service. For workers with less than one year of service, the THR is provided on a proportional basis, Airlangga stated during a press conference in Jakarta on Tuesday.

“THR is provided to workers with a minimum of one year of service, and the amount is one month’s salary. For workers with less than one year of service, it is provided proportionally,” he said.

Based on data from the Indonesian Workers’ Social Security Agency (BPJS Ketenagakerjaan), the number of registered wage earners totals 26.5 million workers. With this figure, the total THR to be paid by the private sector is estimated to reach Rp124 trillion.

Airlangga expressed hope that the distribution of THR in the private sector can significantly boost national consumption.

“This is expected to drive national consumption significantly,” he said.

In the same statement, Labour Minister Yassierli announced that a circular letter has been issued regarding the implementation of THR payments for 2026. He urged companies to distribute THR to their employees more quickly. “We are requesting that THR be paid at the latest, with companies encouraged to pay faster.”