Indonesian Political, Business & Finance News

Labour Minister Issues Circular Demanding Religious Holiday Allowance Posts in District/City Administrations

| Source: CNBC Translated from Indonesian | Social Policy

Jakarta - The Minister of Manpower (Menaker) Yassierli announced that the Ministry of Manpower has issued a Circular Letter (SE) regarding the payment of Religious Holiday Allowance (THR) for 2026. The circular contains several key points, ranging from the deadline for THR payment to the steps that must be taken by district and city administrations.

“The Ministry of Manpower has issued a Circular Letter. First, concerning the implementation of THR payment, which refers to Government Regulation (PP) No 36 of 2021 on Wages and Ministerial Regulation (Permenaker) No 6 of 2016 on Religious Holiday Allowance for Workers/Labourers in Companies,” said Yassierli during a joint press conference on 2026 THR-BHR (Religious Holiday and Bonus Holiday Allowance) with Coordinating Minister for Economic Affairs Airlangga Hartarto and other relevant ministers in Jakarta on Tuesday (3 March 2026).

The second point, he continued, stipulates that THR is provided to workers with continuous service of one month or more, or those under fixed-term work agreements (PKWT).

“We are requesting that THR be paid at the latest seven days before Eid 2026. Companies are encouraged to pay more quickly. We emphasise that THR must be paid in full and cannot be paid in instalments,” added Yassierli.

“District and city administrations are asked to establish THR coordination posts that are integrated with the Ministry of Manpower’s posts,” Yassierli stated firmly.

According to data from the Labour Social Security Agency (BPJS Ketenagakerjaan) which records approximately 26.5 million workers, the estimated total amount of THR for private sector employees in 2026 is Rp124 trillion.

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