Private Sector THR Rules: Schedule, Amounts, Taxation, and How to Report to the THR Help Desk

Private Sector THR Rules: Schedule, Amounts, Taxation, and How to Report to the THR Help Desk

Jakarta, CNBC Indonesia - Eid al-Fitr is approaching. Naturally, the Tunjangan Hari Raya (THR) is something awaited. So, when are the schedule, the amount, tax, and sanctions for violations in granting THR to private-sector employees? Here are the details.

Schedule

Employers are urged to pay THR to private-sector workers in accordance with applicable regulations, i.e., no later than 7 days before Eid al-Fitr. The payment window is therefore expected to begin on 11-12 March 2026.

Minister of Manpower (Menaker) Yassierli has stated that he has issued Circular Letters (SE) regarding the implementation of THR payments for 2026. “We require THR to be paid no later than 7 days before Eid al-Fitr. However, we encourage companies to pay THR earlier than that deadline,” Yassierli said at a press conference at the Coordinating Ministry for Economic Affairs on Tuesday (3/3/2026).

Amounts

Coordinating Minister for Economic Affairs Airlangga Hartarto reminded that private-sector companies must pay THR to employees without instalments. “For those who have worked at least one year, the amount should be at least one month’s wages. For less than one year, it is proportional. Of course, each private company varies,” Airlangga said at a press conference in his office in Jakarta, quoted on Saturday (7/3/2026).

Tax Obligations

The certainty of THR disbursement is indeed the most awaited moment for employees ahead of Lebaran. However, it must be remembered that THR is also subject to tax obligations.

Referring to Director General of Tax (DJP) Regulation PER-16/PJ/2016 on Guidelines for the Tax Withholding, Payment, and Reporting of Income Tax Article 21 and/or Income Tax Article 26 in connection with Persons’ Work, Services, and Activities, THR falls under the category of non-regular income that is subject to Income Tax Article 21 (PPh 21).

Quoted from a tax article by Yolanda Permata Yanra, a DJP employee, THR provision follows the latest tax regulations governed by Government Regulation and Minister of Finance Regulation.

Notably, withholding of income tax (PPh 21) on THR is not arbitrary; it must follow the progressive tax rate scheme. With the implementation of an Average Tax Rate (TER) based on Minister of Finance Regulation No. 168 of 2023 on Guidelines for Withholding Tax on Income Related to Work, Services, or Activities of Individuals (PMK 168/2023), THR tax calculation is now more structured and easier for workers.

Yolanda explained that THR itself is categorised as additional income that is non-regular in nature, so withholding refers to a different PPh 21 rate from the regular monthly income received by permanent employees.

“This system aims to simplify tax calculation in a single month,” Yolanda said.

If THR is not paid by a company: Report!

Minister of Manpower (Menaker) Yassierli directly reviewed the THR and Religious Holiday Bonus (BHR) Post (Operational Post) for 2026 opened by the Ministry of Manpower (Kemnaker). The THR/BHR Post, located at the One-Stop Integrated Service (PTSA) of Kemnaker, B Building, 1st Floor, South Jakarta, exists to ensure workers’ rights to THR and BHR are fulfilled ahead of Eid al-Fitr 1447 H.

The THR and Religious Holiday Post provides two main services: consultation and complaints handling. The consultation service has been open since 2 March 2026, addressing questions about THR and BHR rights, from recipient eligibility and calculation methods to issues arising in special circumstances such as termination of employment (PHK).

Yassierli explained that the most frequently asked questions at this Post relate to rights and calculation mechanisms for THR, including in PHK situations. “People usually ask, ‘Am I entitled to THR when I’m employed but then there’s a PHK case and so on?’ and how to calculate it. This Post is here to answer all those questions,” he said when reviewing Kemnaker’s THR and BHR Post in South Jakarta, quoted on Saturday (7/3/2026).

Each complaint received will be promptly followed up by the on-duty labour inspectors. With this mechanism, Kemnaker ensures that every workers’ report receives a swift response and proper handling in accordance with the law.

To broaden the service reach, Kemnaker also provides online access to consultation and complaint services via the website poskothr.kemnaker.go.id and WhatsApp Chat at number 081280001112. Yassierli emphasised that the ease of access is designed so that all workers can use the Posko without necessarily visiting in person.

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