Indonesian Political, Business & Finance News

Can Probationary Workers Receive Holiday Allowance? Here's What the Labour Ministry Says

| Source: DETIK Translated from Indonesian | Social Policy
Can Probationary Workers Receive Holiday Allowance? Here's What the Labour Ministry Says
Image: DETIK

The Ministry of Labour (Kemnaker) has clarified that workers still in their probationary period remain eligible to receive the religious holiday allowance (THR), provided their length of service exceeds one month.

According to the Ministry’s official announcement, probationary periods can only be stipulated in indefinite-term employment agreements (PKWTT) for a maximum duration of three months. Workers in probation who have completed more than one month of service are entitled to receive a proportional THR based on their actual length of service.

Calculation of Proportional THR

The proportional THR is calculated using the following formula:

  • Length of service/12 × 1 month’s salary

How to Calculate 2026 Eid Holiday Allowance for Private Sector Employees

Based on the Labour Ministry’s Circular Letter Number M/3/HK.04.00/III/2026, the following rules apply:

For workers with 12 consecutive months of service or more: They receive one full month’s salary as THR.

Example: An employee earning 6 million rupiah monthly with two years of service receives 6 million rupiah in THR.

For workers with one continuous month or more but less than 12 months of service: They receive a proportional amount calculated as:

Length of service/12 × 1 month’s salary

Example: An employee earning 5 million rupiah monthly with six months of service receives 2.5 million rupiah (6/12 × 5 million).

Other Provisions

For daily-wage workers:

  • Those with 12 months or more of service: One month’s salary is calculated based on the average salary received over the 12 months preceding the religious holiday.

  • Those with less than 12 months of service: One month’s salary is calculated based on the average salary received per month during their tenure.

For workers on piece-rate or output-based compensation: One month’s salary is calculated based on the average salary earned over the 12 months preceding the religious holiday.

For companies where the THR amount stipulated in the employment agreement, company regulations, collective bargaining agreement, or established practice exceeds the statutory minimum: The THR paid to workers follows the higher amount specified in these arrangements.

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