Private Sector Holiday Allowance Must Be Paid in Full and Cannot Be Instalments
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, has emphasised that religious holiday allowance (THR) payments to private sector workers must be paid in full and cannot be distributed in instalments. The release of THR funds has been requested no later than seven days before Lebaran.
“For the private sector, it is mandatory to pay in full, no instalments,” he said during a press conference regarding THR policy, basic holiday allowance (BHR), and the realisation of the 2026 Ramadan stimulus at the Ministry of Coordinating Affairs for Economic Affairs office in Jakarta on Tuesday, 3 March.
Airlangga explained that THR for private sector workers is given to workers with a minimum of one year of service equal to one month’s wages. Meanwhile, workers with less than one year of service will receive THR on a pro-rata basis.
“Of course, this THR nominal amount will vary for each company,” he said.
Based on data from the Employment Social Security Agency (BPJS Ketenagakerjaan), the number of registered wage earners reaches 26.5 million workers. The total estimated THR for the private sector to be paid reaches Rp124 trillion. The government hopes that the disbursement of these funds can significantly encourage national consumption during the Ramadan and Lebaran period.
On the same occasion, Minister of Manpower Yassierli emphasised that religious holiday allowance is given to workers or labourers who have had a continuous work period of one month or more, and who have a work relationship with employers based on employment agreements either for indefinite or definite periods of time.
The government has requested that religious holiday allowance must be paid no later than seven days before the religious holiday.
“However, we encourage companies to pay it earlier before that deadline,” he said.
The Ministry of Manpower has also emphasised that religious holiday allowance must be paid in full by companies and cannot be distributed in instalments.
The Ministry of Manpower has issued Circular Letter Number M/3/HK.04.00/3/2026 concerning the Implementation of Religious Holiday Allowance Provision in 2026 for Workers or Labourers in Companies. The circular letter was addressed to governors throughout Indonesia.
In the circular letter, there are several important points. First, the provision of THR refers to Government Regulation Number 36 of 2021 concerning Wages and the Ministry of Manpower Regulation Number 6 of 2016 concerning Religious Holiday Allowance for Workers/Labourers in Companies.
“We request governors to take steps. Namely, to ensure that companies in their respective regions pay religious holiday allowance in accordance with the provisions of the law,” the minister said firmly.
To anticipate complaints arising from the implementation of religious holiday allowance payments, each provincial and regency/city region has been asked to establish a Task Force Command Post (Posko Satgas) for Labour Services, Consultation and Law Enforcement for Religious Holiday Allowance 2026, which will later be integrated with the Ministry of Manpower’s THR Command Post website.