Here’s How to Calculate Your Employee Holiday Religion Allowance!

For those of you owners of companies that have employees or who work in the HR department would have been familiar with the term holiday religion allowance (tunjangan hari raya, THR) paid to employees at the approaching celebration of the holiday. There are several provisions of Regulation of the Minister of Manpower No. 6 of 2016 ("Permenaker 6/2016") that you should pay attention to.

First about employees are entitled to get THR. Earlier in Permenaker 4/1994, Holiday Allowance was granted to workers with a minimum of 3 months’ service life. In Permenaker 6/2016, workers with minimum 1 month working period are entitled to THR. And THR is obliged to be paid no later than seven days before the religious holiday.

In Indonesia, this religious holiday is also used as a national holiday and sabbatical. For Muslims, THR is given ahead of Idul Fitri, on Christmas Day for Catholics and Protestants, Nyepi is given to Hindus, and Buddhists are given on Vesak Day. And Imlek given to workers who are Confucian religion.

Regarding the amount, a worker that already has 12 months continuous working period or more, then he is entitled to get one month full salary THR. While for the working period less than 12 months, the calculation is the number of months divided by 12 months multiplied by one month salary.

Regardless, your company can make its own rules regarding THR in the work agreement or company regulations. The company must provide minimum THR according to the provisions of Permenaker 9/2016. This means that the company may provide THR in larger quantities.

What if there are companies that do not pay THR? The company must be prepared to accept sanctions because the government through Permenaker Number 20 of 2016 on the Procedure of Administering Administrative Sanctions and Government Regulation (PP) Number 78 of 2015 on Remuneration, has set strict sanctions for companies that intentionally not pay or neglect to pay THR.

Companies that are not paying or failing to give THR will be fined 5 percent of the total THR to be paid to employees. In addition, there are also administrative sanctions to be provided to companies that are found to be infringing, ranging from sanctions in the form of written warning to restrictions on business activities. However, these sanctions do not apply to companies that have financial or financial problems.

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