Tracing the Roots of the THR Giving Tradition Ahead of Eid, The Story Behind the Joy

Kapanlagi.com - The Holiday Allowance (THR) is an important part of the celebration of Eid al-Fitr in Indonesia, where Muslims celebrate victory after a month of fasting.

THR, which is regulated by the Minister of Manpower Regulation Number 6 of 2016, is a non-wage income that must be provided by employers to workers ahead of the holiday, and this tradition is also found in various other Muslim countries.

The origin of THR dates back to the medieval period during the rule of the Fatimid Caliphate, where the giving of money, clothing, and sweets to citizens on the first day of Eid al-Fitr became a tradition that developed until the Ottoman Empire.

The giving of THR is not just a material gesture, but also a symbol of love and appreciation, especially for children who have successfully observed fasting, making THR a symbol of togetherness and joy in celebrating this blessed day, as reported by Kapanlagi.com from various sources, Monday (10/3/2025).

1. THR in Indonesia Since 1951

Since 1951, Indonesia has recognized the tradition of Holiday Allowance (THR), which began with the suggestion of Prime Minister Soekiman to provide financial assistance to Civil Servants (PNS) in the form of a one-time payment or initial loan, in order to enhance the welfare of the community during major religious celebrations. Although initially the money had to be repaid through salary deductions, over time, THR has evolved into an obligation for companies to provide allowances to workers and laborers, in accordance with existing regulations. Now, THR is not just an obligation, but has also become an inseparable part of Indonesian culture that is eagerly awaited before Eid, bringing happiness and a new spirit to every family.

2. THR in Neighboring Countries

In Indonesia's neighboring countries, such as Malaysia and Singapore, the tradition of providing Holiday Allowance (THR) is also deeply rooted, referred to as "Uang Raya." This Uang Raya is usually presented in green envelopes or packages that symbolize luck and blessings. The amount of money distributed varies, reflecting the financial condition of the family and the richness of local cultural traditions, making this moment full of meaning and hope.

3. How to Calculate Holiday Allowance (THR)

In calculating the Holiday Allowance (THR), there are several important steps to consider to ensure the process runs smoothly. First, determine the employee's monthly salary.

If an employee has served for more than one month, the THR received is equivalent to one month's salary. However, for employees who have just joined for less than a year, the THR will be calculated proportionally according to their length of service.

By understanding this THR mechanism, both employees and employers can fulfill their rights and obligations properly, creating a more harmonious and productive work environment.

(kpl/rao)