Am I Entitled to Religious Bonus Pay if I've Worked Less Than a Year? Here Are the Rules and Amounts According to Regulation

Ahead of Eid al-Fitr, many workers in Indonesia eagerly anticipate the Religious Holiday Allowance, commonly known as THR. This allowance represents an important entitlement typically used to meet various pre-Eid needs, ranging from travelling home, purchasing household necessities, to sharing with family members.

However, numerous workers remain uncertain about their THR entitlements, particularly new employees who have not yet completed one year of service. Questions such as “If I’ve worked less than a year, am I entitled to the Eid bonus?” frequently arise, especially amongst recently hired staff members who have been employed for only a few months.

The actual rules governing THR payments for workers with less than one year of service are as follows, according to clarifications from the Ministry of Labour.

Workers Entitled to Receive THR

Several categories of workers are entitled to receive religious holiday allowances:

1. Workers with a minimum of one month’s service

Workers or employees engaged under Fixed-Term Employment Agreements (PKWT or contract) as well as Indefinite-Term Employment Agreements (PKWTT or permanent staff) are entitled to receive THR provided they have maintained continuous service of at least one month at the company.

2. Workers dismissed near a religious holiday

Workers or employees with permanent status (PKWTT) who are terminated by the employer within 30 days prior to a religious holiday remain entitled to receive THR.

3. Workers transferred to another company

Employees transferred to another company whilst maintaining continuous service are also entitled to receive THR, provided they have not previously received the allowance from their former employer.

Many incorrectly assume that THR is only granted to workers who have completed a full year of employment. However, applicable regulations stipulate that workers with a minimum of one month’s service remain entitled to receive THR.

For workers employed less than 12 months, the THR amount is typically calculated on a proportional basis. This means the amount received will be lower than that of workers who have been employed for one year or longer.