THR (Tunjangan Hari Raya), or Religious Holiday Allowance, is a mandatory annual payment for every employee in Indonesia — often called the country’s “13th-month pay.” Unlike a discretionary bonus, THR is a legal obligation with a strict payment deadline tied to each employee’s major religious holiday, and missing it exposes employers to labor complaints and penalties.
This guide explains exactly how THR is calculated, who qualifies, and when it must be paid.
- THR applies to any employee who has completed at least 1 month of continuous service, including permanent, fixed-term, daily, and part-time workers.
- Employees with 12+ months of service receive a full 1x monthly salary plus fixed allowances; employees with 1–11 months receive a prorated amount.
- The calculation base is basic salary plus fixed allowances only — variable pay like overtime and performance bonuses is excluded.
- THR must be paid at least 1 week before the employee’s major religious holiday (for Muslim employees, before Eid al-Fitr) — not a flexible or negotiable deadline.
The THR Calculation Formula
The calculation base includes basic salary and any fixed monthly allowances (e.g. a fixed transport or meal allowance paid every month regardless of performance). Variable components — overtime pay, sales commissions, performance bonuses — are excluded from the THR base.
Who Qualifies for THR
THR eligibility is broad by design: it covers permanent employees (PKWTT), fixed-term contract employees (PKWT), daily workers, and part-time workers, as long as they’ve completed at least one month of continuous service before the payment deadline. There is no carve-out for contract type the way there sometimes is for other statutory benefits — virtually every employee relationship in Indonesia triggers a THR obligation once the one-month threshold is met.
The Payment Deadline
THR must be paid at least one week before the employee’s major religious holiday. For Muslim employees, this is tied to Eid al-Fitr; for employees of other religions, it’s tied to their own major religious holiday (Christmas for Christian employees, Nyepi for Hindu employees, Vesak for Buddhist employees, and Chinese New Year for Confucian employees, per Indonesian regulation). This means THR isn’t a single company-wide date — it can vary by employee depending on their religion, and HR needs to track each relevant holiday date.
Common Mistakes Employers Make
The most frequent error is treating THR as a single company-wide payment date tied only to Eid al-Fitr, when employees of other religions are legally entitled to THR timed to their own holiday. A second mistake is including variable pay (overtime, commissions) in the calculation base, which overstates the required amount. A third is failing to prorate correctly for employees with less than 12 months of tenure, either underpaying or overpaying the amount owed.
Don’t want to calculate THR deadlines yourself?
Asiacruit calculates and disburses THR correctly and on time for every Indonesia hire — whether you have a PT PMA or not.
Book a Demo →Frequently Asked Questions
THR (Tunjangan Hari Raya) is a mandatory Religious Holiday Allowance, often called Indonesia’s 13th-month pay, that must be paid annually to every employee with at least 1 month of service.
Employees with 12+ months of tenure receive a full month’s salary plus fixed allowances. Employees with 1–11 months receive a prorated amount: (months worked ÷ 12) × monthly salary and fixed allowances.
At least 1 week before the employee’s major religious holiday — this varies by employee depending on their religion, not a single company-wide date.
Yes. An EOR like Asiacruit calculates THR correctly based on tenure and salary, and disburses it on time ahead of each employee’s relevant religious holiday.