ASN THR Not Taxed, But Private Sector THR Tax Cut; Purbaya Urges Workers to Protest to Their Employers

Jakarta, VIVA – The government has revealed that the tax on Tunjangan Hari Raya (THR) for Aparatur Sipil Negara (ASN) is not taxed because it is borne by the state. This policy differs from the private sector.

Finance Minister Purbaya Yudhi Sadewa emphasised that tax policy is carried out fairly, in response to criticism over deductions of THR for employees in the private sector.

“We will implement taxation that is fairly administered,” Purbaya said during a media briefing at the Ministry of Finance in Jakarta, quoted on Saturday, 7 March 2026.

Purbaya explained that the THR tax policy for civil servants (ASN) is borne by the government because they work in government institutions. Therefore, for private-sector employees, Purbaya advised voicing their aspirations to their respective company leadership.

“For ASN it is borne by (the government) the boss. So, if the private sector protests, protest to the boss,” he added.

The Finance Minister also doubted the potential for changes to policies related to THR tax borne by the government for the private sector. “It is difficult to change this partial regulation to satisfy one side,” he said.

At the same time, the Director General of Taxes Bimo Wijayanto added that private-sector employees have their own allowance facilities governed by each company.

Bimo also stated that the adoption of the average effective rate (TER) has no impact on tax deductions. Because the TER implementation aims to distribute the tax burden monthly, not to alter the amount of tax payable.

“Actually there is no problem; rather, it makes it easier for taxpayers to allocate the burden monthly,” said Bimo.

THR is part of an employee’s income that falls within the object of PPh Article 21. Based on Government Regulation (PP) No. 58 of 2023, the calculation of tax deductions on THR uses the average effective rate (TER) mechanism, divided into three categories, namely TER monthly A, TER monthly B, and TER monthly C.

The grouping is based on the amount of Non-Taxable Income (PTKP) according to marital status and number of dependents of the taxpayer. The rate charged for each category ranges from 0 percent to 34 percent, and depends on the amount of monthly income received.