Minister of Manpower Yassierli Responds to Workers’ Protests: THR Tax 2026 Remains in Line with Rules

Tunjangan Hari Raya (THR) is subject to Income Tax under Article 21 (PPh 21). However, not all workers bear the same deductions. Under the 2026 regulations, most private-sector employees still face tax deductions. The calculation uses the Average Effective Tax Rate (TER) scheme under Government Regulation (PP) No. 58 of 2023. Tax is calculated from the total running monthly gross income (Salary plus THR).

Under PP No. 14 of 2024 updated for 2026, THR tax for Civil Servants (ASN), members of the TNI, and Polri is borne by the government, meaning they receive THR in full without personal tax deduction.

In 2026, the government provides a PPh 21 Tax Withheld by Government (DTP) for workers with Rupiah salary up to 10,000,000 in five sectors. The amount of tax deduction is determined by TER category based on PTKP (Penghasilan Tidak Kena Pajak).

Example: A private-sector employee (TK/0) with a monthly salary of 6,000,000 receives THR equal to 1 month’s salary. Total March income becomes 12,000,000 Rupiah.

Who is THR tax-exempt for 2026? See details of private-sector sectors eligible for PPh 21 DTP and the full THR for ASN.

The government confirms THR 2026 remains taxable under PPh 21. See the TER tariff simulation and the schedule for the disbursement of THR for ASN and private sector here.

Disnaker Sumut and six UPTs have established THR complaint posts in their respective districts.

Disnaker will monitor THR disbursement to hundreds of thousands of workers employed in 1,667 companies operating in Depok.

PT Sarinah predicts the peak in transactions will occur from 6 to 13 March 2026, coinciding with the THR disbursement period.

Minister of Economic Affairs Airlangga Hartarto emphasised that THR for private-sector workers is paid in full, i.e., not in installments.