Workers protest THR taxation; Purbaya: protests should be directed at employers, only civil servants' taxes are borne by the state

Jakarta — Finance Minister Purbaya Yudhi Sadewa has responded to complaints by some workers about the taxation of the holiday allowance (THR). He said the policy is part of the tax system that applies to all forms of income. ‘If workers protest about THR being taxed, the protest should be directed at their boss. Civil servants (ASN) have bosses who are the government and the taxes are borne,’ Purbaya said during an iftar gathering at the Ministry of Finance in Jakarta on Friday, 6 March 2026. He explained the government applies the same tax system for all incomes, including THR. Therefore, the rules cannot be changed just to accommodate objections from a particular group. ‘The government runs a fairly applied tax system. It would be difficult if the regulations were changed just to satisfy one party,’ he said. Director General of Taxation Bimo Wijayanto explained THR is irregular income received by employees within a year. Therefore, the taxation treatment is the same as other incomes. ‘THR is part of irregular income within a year. All incomes are taxed,’ he said. He added that tax deductions also apply to civil servants (ASN), members of the TNI, and Polri. The difference is that for their THR, taxes are borne by the government so employees still receive THR in full. ‘If it is ASN, TNI, or Polri, taxes are also deducted. The only difference is because the funds come from the APBN, the taxes are borne by the government,’ he said.