THR: What Does It Mean? Check the Rules and How to Calculate It in Indonesia!

Kapanlagi.com - Every employee in Indonesia surely wants to know more about THR, which stands for Tunjangan Hari Raya, a benefit that is their right ahead of the holiday. THR is not just a term, but an important benefit that must be understood by all workers in various industrial sectors.

For several decades, the meaning of THR has been a major focus in the world of employment in the country. This allowance plays a very strategic role, helping workers prepare for all their needs ahead of religious celebrations. Therefore, it is important for every employee to understand well the mechanism of THR distribution that has been regulated in national labor regulations.

Understanding THR cannot be taken lightly; it is crucial for both workers and employers. This allowance is more than just a number in the bank; it is a symbol of the company's appreciation for the dedication of its employees throughout the year. With in-depth information about THR, workers can be more aware of their rights and ensure they receive compensation that aligns with applicable regulations.

For more information, check out the complete review at Kapanlagi.com, Tuesday (21/1/2025).

1. The Abbreviation of THR is Tunjangan Hari Raya

THR (Tunjangan Hari Raya) is an additional income that companies are required to provide to employees ahead of religious holiday celebrations.

THR is considered non-wage income and is generally given to employees who have worked for at least one year, while employees with less than a year of service receive THR proportionally.

The purpose of providing THR is to help employees meet their needs during the holiday celebrations, in accordance with regulations from the Minister of Manpower of the Republic of Indonesia.

THR is a right that must be fulfilled by the company, and its provisions are regulated to protect workers' rights.

Understanding THR is important so that employees can plan their holiday needs and know their rights related to the provision of THR.

2. Regulations on THR Provisions in Indonesia

In Indonesia, the provision of Tunjangan Hari Raya (THR) is regulated by the Minister of Manpower and Transmigration Regulation Number 6 of 2016, which guarantees employees' rights to celebrate holidays.

Employees who have worked for at least one month, whether under a Fixed-Term Employment Agreement (PKWT) or an Indefinite Employment Agreement (PKWTT), are entitled to receive THR.

The amount of THR for employees who have worked for 12 months or more is equivalent to one month's salary, while those with less than that receive a proportional calculation.

THR is calculated based on the basic wage and fixed allowances, and must be paid no later than seven days before the holiday, providing a sense of security for employees in celebrating special moments.

3. How to Calculate THR Correctly

Employees who have served for 12 months or more are entitled to receive the Holiday Allowance (THR) equivalent to one month's salary, which is calculated from a combination of basic wages and fixed allowances.

For example, if Employee A has a basic salary of Rp 4,000,000 and a fixed allowance of Rp 1,000,000, then the THR they receive is Rp 5,000,000.

For those who have worked less than 12 months, such as Employee B who has worked for 6 months with a basic salary of Rp 3,000,000 and an allowance of Rp 500,000, their THR is calculated proportionally, which amounts to Rp 1,750,000. Meanwhile, for employees with fluctuating salaries, THR is calculated based on the average salary of the last 12 months.

According to the Minister of Manpower Regulation No. 6/2016, companies are required to pay THR no later than 7 days before the holiday, making it important for employees to understand this calculation method to ensure the accuracy of the THR received.

(kpl/rao)