Content of Minister of Manpower Circular No. M/2/HK.04.00/III/2025 Regarding the Implementation of Holiday Allowance (THR) 2025, Workers Must Know This!

Kapanlagi.com - The government through the Ministry of Manpower has officially issued the Minister of Manpower Circular Number M/2/HK.04.00/III/2025 regarding the Implementation of Religious Holiday Allowance (THR) for the year 2025. This letter is addressed to all governors in Indonesia and regulates the obligations of companies in paying THR for workers/laborers in Indonesia, especially ahead of Eid al-Fitr.

In this Circular, Minister of Manpower Yassierli emphasizes that the religious THR must be fully paid by employers no later than 7 days before the Religious Holiday. There is no option for installment payments of THR, and all companies are asked to give full attention to this provision.

This regulation is based on Government Regulation Number 36 of 2021 concerning Wages and Minister of Manpower Regulation Number 6 of 2016 concerning Religious Holiday Allowances for Workers/Laborers. The implementation of THR distribution is not only normative but is also monitored through local government supervision and special complaint posts. Here is the information, summarized by Liputan6, Sunday (23/3).

1. Mandatory Holiday Allowance to be Given Without Installments and on Time

The government emphasizes that all companies in Indonesia are required to provide Religious Holiday Allowances to workers or laborers in full and not in installments, with the payment deadline no later than seven days before the Religious Holiday takes place, in accordance with the provisions outlined in the Circular Letter of the Minister of Manpower Number M/2/HK.04.00/III/2025.

The payment deadline for the holiday allowance is absolute and must be followed by all companies without exception, and any violation may lead to administrative sanctions as stipulated in applicable labor regulations.

The provision of this holiday allowance is a form of the company's responsibility in fulfilling workers' rights while also maintaining the economic stability of workers' households ahead of religious holidays, as well as part of strengthening the national wage system.

"The provision of Religious Holiday Allowances (THR) for Workers/Laborers is an effort to meet the needs of Workers/Laborers and their families in welcoming the Religious Holiday. Based on Government Regulation Number 36 of 2021 concerning Wages and Minister of Manpower Regulation Number 6 of 2016 concerning Religious Holiday Allowances for Workers/Laborers in Companies, the provision of Religious Holiday Allowances is an obligation that must be fulfilled by employers to Workers/Laborers." reads the letter, quoting poskothr.kemnaker.go.id.

2. Who is Entitled to Receive THR?

Workers who are entitled to receive religious THR based on the Circular Letter include all workers or laborers who have worked for one month or more continuously, regardless of their employment status whether under a permanent work agreement (PKWTT) or a fixed-term work agreement (PKWT).

For workers who have worked for 12 months or more continuously, the amount of THR given is equivalent to one month's wages according to the last salary received before the Religious Holiday.

Meanwhile, for workers with a work period of between one to twelve months, the amount of THR is given proportionally using the calculation formula of the length of service divided by 12 multiplied by one month's wages, thus reflecting fairness and suitability with the contributions made.

"Religious THR is given to: a. Workers/Laborers who have had a work period of 1 (one) month continuously or more. b. Workers/Laborers who have an Employment Relationship with Employers based on a permanent work agreement or a fixed-term work agreement." states the letter.

3. Calculation of THR According to Length of Service and Wage System

The calculation of THR is adjusted according to the type of employment relationship and the wage system of workers, where for workers with a length of service of one year or more, THR is calculated from one full month’s wage received over the last 12 months on average before the Religious Holiday.

For daily workers who have worked for 12 months or more, THR is calculated based on the average daily wage over the last 12 months, while for those who have worked for less than 12 months, it is calculated from the average wage during that period.

If workers are paid based on output or a piece-rate system, then the THR calculation follows the average income from work results over the last 12 months, thus reflecting the income that workers are entitled to receive ahead of the holiday.

4. Additional Provisions If THR Exceeds Employment Agreement

If there is a work agreement, company regulations, collective labor agreement, or company practices that establish a value for religious holiday allowance (THR) greater than the provisions set by the government, then the employer is still required to pay THR according to that greater value.

This means that companies that consistently provide THR greater than one month’s salary based on internal policy or mutual agreement cannot reduce the THR value to the minimum level set by the government.

This policy aims to maintain the continuity of worker welfare and provide legal certainty that workers' rights, which have become customary or agreed upon, cannot be unilaterally reduced by the company.

"For companies that set the amount of religious holiday allowance (THR) in the Work Agreement, Company Regulations, Collective Labor Agreement, or practices, which is greater than the religious THR value as stated in number 3 above, then the religious THR paid to workers should be in accordance with the Work Agreement, Company Regulations, Collective Labor Agreement, or those practices." reads point number 6 of the circular letter.

5. Supervision Mechanism and THR Post 2025

To ensure that all companies comply with the obligation to provide THR as per regulations, the Ministry of Manpower instructs Governors across Indonesia to encourage companies to pay THR on time and to establish an integrated THR Task Force Command Post through the website https://poskothr.kemnaker.go.id.

In addition to monitoring THR payments, this post also serves as a consultation service and law enforcement regarding violations of THR provision, whether in the form of delays or non-compliance with the amount paid.

Through this post, workers can file complaints or reports if discrepancies are found in THR provision, while local governments are tasked with disseminating this circular letter to district heads, mayors, and relevant stakeholders.

"To anticipate complaints arising from the implementation of THR payments, each provincial and district/city area is to establish a Task Force Command Post (Posko Satgas) for Employment Consultation Services and Law Enforcement of Religious Holiday Allowance for 2025 integrated through the website:https://poskothr.kemnaker.go.id/dashboard" the circular letter also states.

The full content of the letter can be accessed here: Content of the Minister of Manpower Circular on the Implementation of THR 2025

6. Questions and Answers About THR 2025

1. What is the deadline for THR 2025 payment?

At the latest, 7 days before the Religious Holiday (Idulfitri 2025).

2. Can THR be paid in installments by the company?

No, THR must be paid in full and cannot be paid in installments.

3. Who is entitled to receive THR?

All workers with a minimum continuous working period of 1 month.

4. How is THR calculated for daily contract workers?

Calculated based on the average wage of the last 12 months or the working period if less than 12 months.

5. Can a company pay THR more than 1 month's salary?

Yes, if it is stated in the employment agreement or company practices.

(kpl/frr)