Tax Incentives for Workers Expanded: PPh 21 DTP Allocation for 2026 Nears Rp 500 Billion
JAKARTA, KOMPAS.com - The Directorate General of Taxation (DJP) of the Ministry of Finance has raised the budget ceiling for the government-borne income tax incentive under Article 21 (PPh 21 DTP) for certain employees in 2026.
Director of Dissemination, Services, and Public Relations at the Directorate General of Taxation (DJP), Inge Diana Rismawanti, stated that the budget allocation for the Income Tax (PPh) Article 21 Government-Borne (DTP) incentive in 2026 is nearly touching Rp 500 billion.
“We had a budget of nearly Rp 400 billion that was not fully utilised. It wasn’t 100% used. Finally, because many have requested it, we are implementing it again in 2026 with the allocation becoming nearly Rp 500 billion,” said Inge, quoted on Friday (17/4/2026).
The increase in the budget ceiling is driven by the high interest from business actors in utilising the incentive in the previous year.
She explained that the realisation of the PPh 21 DTP incentive utilisation in 2025 reached around 96.96% or Rp 383 billion from the total provided budget.
The high absorption rate serves as the basis for the government to continue and expand the incentive allocation this year.
“Because it wasn’t widely disseminated to all business actors last time, this policy is extended into 2026,” she said.
The PPh 21 DTP incentive is part of the economic stimulus package set by the government through Minister of Finance Regulation (PMK) No. 105 of 2025.
This policy applies for the tax period from January to December 2026.
In the regulation, Inge stated that the government emphasises that the incentive is provided to maintain the sustainability of public purchasing power while supporting economic and social stabilisation.
The incentive recipients are focused on workers in labour-intensive sectors, such as the textile and clothing industry, footwear, furniture, leather and leather goods, as well as the tourism sector.
Overall, there are 133 business field classifications covered by this policy.
The incentive is given to employees with a maximum gross income of Rp 10 million per month.
Meanwhile, for non-permanent workers, the limits include a maximum daily wage of Rp 500,000 or equivalent to Rp 10 million per month.