Companies Failing to Pay Eid Allowance Face 5 Per Cent Fine Penalty

Jakarta — Indonesia’s Labour Minister Yassierli has reminded companies to pay the Tunjangan Hari Raya (THR), or Eid allowance, in accordance with legal requirements. Companies that fail to meet this obligation will face sanctions. The penalties consist of payment of the unpaid THR plus a 5 per cent fine to workers.

“They must pay plus a five per cent fine,” Yassierli said when met after overseeing a free exodus support initiative at the Labour Ministry’s offices in Jakarta on Tuesday (17/3/2025).

Complaints are being followed up through inspections conducted by a supervisory team. Companies found to be in breach remain required to pay the THR in accordance with regulations.

“After we follow up, they must pay accordingly,” Yassierli stated.

The Ministry of Labour opened THR consultation service desks from fourteen days before Eid. Complaint desks for breach violations opened from seven days before Eid. Data from three days before Eid recorded 1,121 companies having been reported. The breakdown included 975 cases of unpaid THR, 378 cases of THR payments not in accordance with regulations, and 302 cases related to late THR payments.

“These desks are also located in the regions, and we continue to monitor this. Those cases we can follow up on, we do so directly,” Yassierli said.

Payment must also be made in full. Instalment schemes are not permitted.

These requirements are set out in a Circular Regulation concerning the implementation of THR payments for 2026.

“For the private sector, it is mandatory to pay in full, instalments are not allowed, and payment must be made no later than seven days before Eid,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference in Jakarta on Tuesday (3/3/2026).