Private Sector Employees Must Know! 2026 Holiday Allowance Rules: Payment Schedule and Amount
Jakarta – Ahead of religious celebrations, one of the most anticipated benefits for workers is the receipt of the Holiday Allowance (THR). Beyond helping meet holiday expenses, THR is a worker’s entitlement that employers must provide in accordance with applicable regulations.
Each year, the government through the Ministry of Labour issues official guidelines to ensure THR payments are orderly and do not disadvantage workers.
For 2026, the government has once again regulated the mechanism for providing THR to private sector workers through an official circular. These regulations detail who is eligible to receive THR, when payment must be made, and how to calculate the amount.
THR is income outside the basic salary that employers must provide to workers or their families before religious celebrations. The requirement to pay THR has been formally established in the Ministry of Labour Regulation Number 6 of 2016. This regulation requires every company to provide THR to workers who meet the employment period requirements. As an implementation guide each year, the Minister of Labour also issues a circular explaining the technical details of THR provision.
2026 THR Rules for Private Sector Employees
The provisions for providing THR in 2026 are contained in the Ministry of Labour Circular No. M/3/HK.04.00/III/2026 concerning the Implementation of Holiday Allowance Provision for the Year 2026 for Workers in Companies.
This circular applies to workers with permanent or contract employee status. Based on these regulations, workers entitled to receive THR include:
Workers who have had a minimum of one month of continuous employment.
Workers who have an employment relationship with the company through an Indefinite Period Work Agreement (PKWTT) or a Fixed Period Work Agreement (PKWT).
This means permanent employees and contract employees have equal rights to receive THR as long as they meet the employment period requirements.
2026 THR Payment Schedule
Under the applicable regulations, companies must pay THR at the latest seven days before religious holidays. If Eid al-Fitr 2026 is estimated to fall on 21 March 2026, then THR for private sector employees must be paid no later than 14 March 2026. Companies are also prohibited from delaying THR payment beyond this deadline.