English | 中文 | 下载审德中文简介 

Hotline +62-812-8702-3281

Apr

05

Companies Shall Provide the THR No Later Than Seven Days Before Eid Al-Fitr 2023

The Religious Holiday Allowance or Tunjangan Hari Raya (THR) is a mandatory bonus payment for employees in Indonesia before religious holidays, such as Eid al-Fitr or Christmas. The payment is intended to help employees celebrate the holidays and cover their expenses during the festive season.

In Indonesia, the THR regulation is governed by the Ministry of Manpower, and the bonus amount is determined by several factors, including the employee's length of service, salary, and company profits. Employers must pay the THR to their employees seven days before the holiday.

Regarding the implementation of THR distribution, it has been regulated in the Circular Letter (Surat Edaran) of the Minister of Manpower No. M/2/HK.04.00/III/2023 dated 27 March 2023 concerning the Implementation of Religious THR Distribution for Workers in Companies in 2023.

Ida Fauziah, the Minister of Manpower, explained that the THR will be given to workers who have been employed for one month or more. The THR will also be given to workers with an employment relationship with employers based on an unspecified period of employment agreement (Perjanjian Kerja Waktu Tidak Tertentu or PKWTT) and a specified period of employment agreement (Perjanjian Kerja Waktu Tertentu or PKWT).

The Minister of Manpower requests private companies to provide the THR no later than seven days before Eid al-Fitr 2023, which means that the THR disbursement for private employees is expected to occur no later than 14-15 April 2023. Articles 8 and Articles 9 of the Government Regulation No. 36 of 2021 concerning Wages have explicitly stated this requirement. However, the Minister hopes companies can pay the THR earlier than the stipulated date.

Furthermore, employers who fail to pay the THR can face fines and imprisonment. Additionally, employees who do not receive their THR can file complaints with the Ministry of Manpower or pursue legal action to recover the payment. The imposition of sanctions related to THR violations is also regulated in the Government Regulation No. 36 of 2021 concerning Wages, such as a written warning; a restriction of business activities; a temporary or complete cessation of production equipment; and the freezing of business activities.

If you need consultation concerning THR or labor issues, Schinder Law Firm is one of many corporate law firms in Indonesia. Our professional civil lawyers strive to understand your unique needs and concerns; we will develop creative, cost-effective ways to assist you. Contact us at info@schinderlawfirm.com today to schedule a confidential consultation to discuss your situation and how we can help.

Author: Dewi Susanti

Recent Posts

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Our Service

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
Read More