What is the Religious Holiday Allowance (THR) in Indonesia?

In Indonesia, the Religious Holiday Allowance, known locally as Tunjangan Hari Raya (THR), is a mandatory annual bonus that employers must provide to their employees ahead of significant religious holidays. This allowance is designed to support employees in celebrating their respective religious festivities.

Who Is Eligible for THR?

All employees in Indonesia, whether on permanent or fixed-term contracts, are entitled to receive THR, provided they have worked for their employer for at least one continuous month. The amount of THR is determined as follows:

Employees with 12 Months or More of Service: Entitled to a THR equal to one month's salary.
Employees with Less Than 12 Months of Service: Receive a proportional THR based on their length of employment, calculated using the formula:
$(L e n g t h o f S er v i ce in M o n t h s /12) x M o n t h l y S a l a ry$

For example, an employee who has worked for six months would receive half of their monthly salary as THR.

When Is THR Paid?

Employers are required to disburse the THR payment at least seven days before the employee's respective religious holiday.
The recognized religious holidays for THR payments include:

Eid-ul-Fitr for Muslims
Christmas for Christians
Nyepi for Hindus
Vesak for Buddhists
Chinese New Year for Confucianists

Given that the majority of Indonesian workers adhere to Islam, it is customary for many businesses to pay THR to Muslim employees before the Eid-ul-Fitr holiday and to non-Muslim employees before their respective religious holidays.

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Indonesia

What is the Religious Holiday Allowance (THR) in Indonesia?