Religious Holiday Allowance (Tunjangan Hari Raya or “THR“) is one of the rights of a worker, serving as both a tradition and an effort to meet the needs of workers and their families in celebrating religious holidays to improve welfare and protection. THR is regulated under the Ministry of Manpower Regulation Number 6 of 2016 concerning Religious Holiday Allowance for Workers/Laborers in Companies (“MoP Regulation“). As defined in this regulation, THR is a non-wage income that employers must provide to their employees or their families before the respective Religious Holidays. It is given once a year according to the Religious Holidays. Additionally, Government Regulation Number 36 of 2021 concerning Remuneration, mandates that THR be provided by employers to employees no later than 7 (days) before the religious holiday.

The calculation for employee THR, as outlined in Article 3 and 4 of MoP Regulation, is as follows:

1. Workers/laborers who have worked continuously for 12 (twelve) months or more are given 1 (one) month’s wages;
2. Workers/laborers who have worked continuously for 1 (one) month but less than 12 (twelve) months, are given proportionally according to the work period with the calculation: work period/12 x 1 (one) month wage.

On March 19, 2024, the Minister of Manpower, Ida Fauziyah issued Circular Letter Number M/2/HK.04/III/2024 concerning the Implementation of 2024 Religious Holiday Allowances for Workers in Companies. The letter was published with the aim to emphasize the implementation of THR and underscores the obligation that must be paid in full by employers no later than 7 (seven) days before the religious holiday.

The Minister of Manpower has ensured several main points towards governors regarding the implementation of the THR Payment, including: 

1. Ensuring companies in provincial and city areas pay THR in accordance with the provisions;
2. Urging companies to pay THR early before the obligation is due;
3. Establishing a Command Post for Employment Consultation Services and THR Law Enforcement in 2024 in each provincial and city area, integrated via the website https://poskothr.kemnaker.go.id. Additionally, the Minister has opened a Command Post for THR to provide consultations on THR calculations for complaints online or face to face.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author: Dewi Susanti