Regulations on THR and BHR Payments for Ride-hailing Drivers and Sanctions for Violations
Jakarta — The Indonesian government through the Ministry of Labour has issued a further warning to all employers in Indonesia to pay Religious Holiday Allowance (THR) on time.
This warning was conveyed by Labour Minister Yassierli in a circular issued on 2 March 2026 with number M/3/HK.04.00/III/2026.
In the circular, Yassierli requested all provincial governors throughout Indonesia to reiterate the provision of THR to workers and labourers of companies.
The core of the circular contains seven points regarding the implementation of Religious Holiday Allowance provision, detailing the payment of allowances to workers.
The second point urges companies to pay THR early, at least seven days before the religious holiday takes place.
The third point concerns the amount of THR that must be paid by employers. For workers with a tenure of 12 months or more, the allowance is equivalent to one month’s salary.
For those with less than 12 months of service, the calculation is (tenure divided by 12 months) multiplied by one month’s salary.
The fourth point regulates daily wage workers, whose THR is calculated based on the average wage received over the previous 12 months of employment.
The fifth point addresses workers whose wages are determined based on output units; in such cases, one month’s wage is calculated as the average wage over the previous 12 months.
The final seventh point stipulates that Religious Holiday Allowances must be paid by employers in full and cannot be paid in instalments.
Beyond THR for company employees, the government has also issued a circular regarding the provision of Religious Holiday Bonus (BHR) to ride-hailing motorcycle taxi drivers and app-based couriers.
Circular Menaker Number M/4/HK.04.00/III/2026 contains five points. The first states that BHR is provided by application companies to registered ride-hailing and courier drivers who have been active for the previous 12 months.
The second point specifies that Religious Holiday Bonus is provided in cash of at least 25 percent of the average net income over the previous 12 months.