Indonesian Political, Business & Finance News

Ramadan Halfway Through: When Will Private Sector Employees Receive Eid Allowances?

| Source: CNBC Translated from Indonesian | Social Policy

Jakarta - Indonesia’s Labour Minister Yassierli has confirmed that the Eid allowance (Tunjangan Hari Raya, THR) for private sector employees and workers must be paid before Eid al-Fitr 1447 Hijriah, or Eid 2026. Yassierli has even urged companies to pay the allowance more promptly.

The Labour Minister stated that THR payments are governed by Government Regulation (PP) No 36 of 2021 on Wages and the Labour Ministry Regulation (Permenaker) No 6 of 2016 on Religious Eid Allowances for Workers in Companies.

“We require that THR must be paid at the latest seven days before Eid al-Fitr,” Yassierli stated during a press conference at the Coordinating Ministry for Economic Affairs on Tuesday, 3 March 2026. “However, we appeal to companies to be able to pay THR earlier before this deadline,” he explained.

Beyond this, Yassierli mandated that companies pay the full THR amount within the specified timeframe, with no instalment payments permitted. “We emphasise that THR must be paid by companies in full and cannot be paid in instalments,” he stressed.

With regards to the specific date when private sector employees’ THR should be disbursed, the government previously set 1 Ramadan 1447 Hijriah to fall on Thursday, 19 February 2026. This was announced by Religious Affairs Minister Nasaruddin Umar in a press statement at the Borobudur Hotel, Central Jakarta, on Tuesday, 17 February 2025.

“Based on calculations and no hilal sighting reports, it was agreed that 1 Ramadan 1447 Hijriah falls on Thursday, 19 February 2026,” he said.

Muhammadiyah, however, had earlier set the start of Ramadan based on Wednesday, 18 February 2026, according to astronomical calculations endorsed by the Tarjih and Tajdid Council of Muhammadiyah’s Central Leadership.

Based on these dates, the Ramadan fasting period in 2026 has already progressed approximately 13-14 days, or roughly halfway through.

Meanwhile, Eid al-Fitr/Eid 2026 is predicted to fall on 20-21 March 2026. Based on simple calculation, the final deadline for paying private sector employees’ THR is estimated to be around 13-14 March 2026.

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