Deputy Labour Minister writes to Finance Minister Purbaya, calls for abolition of THR and severance tax

JAKARTA — Deputy Minister of Labour Afriansyah Noor says he has sent a letter to Finance Minister Purbaya Yudhi Sadewa to abolish the tax on the Tunjangan Hari Raya (THR) and severance pay (pesangon). ‘We have sent a letter to the Ministry of Finance about the proposal to abolish the THR and pesangon tax,’ Afriansyah told workers demonstrating outside the Ministry of Manpower in Jakarta on Wednesday, 4 March 2026. Ahead of Lebaran THR, Afriansyah will coordinate again with the Ministry of Finance regarding the workers’ demand. ‘The Ministry of Manpower will again coordinate with the Ministry of Finance on the proposal to abolish the THR and pesangon tax,’ he added. ‘If the Minister of Finance does not listen, then Mr Purbaya, we will stage demonstrations again. Don’t be so positive all the time; workers think about it.’ Because, they say, the THR taxed is not enough to go home for the holidays and to buy Eid outfits. Moreover, the workers are said to have already paid taxes faithfully. Also, salaries are taxed before reaching workers’ hands. ‘We want the THR paid to employers not to be taxed. The THR already goes to cover travel home, to meet the needs of their families, to buy clothes, Eid cakes and so on. This country must be fair,’ Suparno said. Besides this, the workers also opposed the import of pickup trucks from India, urged the reactivation of participants in the BPJS Kesehatan PBI programme, and pushed for the enactment of the Domestic Workers Act.