Tunjangan Hari Raya (THR)

Oct 6th, 2006, in Business & Economy, by

The payment of the end-of-Ramadhan bonus to workers is compulsory, according to the Labour minister.

At the end of the Ramadhan fasting month for Muslims, or what is just before the week long holiday called Lebaran or Idul Fitri, it is customary for businesses to pay their workers and staff a bonus of one month’s pay, the payment being called locally “tunjangan hari raya” (THR, pronounced “tee-hah-air”). Not only customary but, as the minister for Labour and Transmigration Erman Suparno, says, obligatory according to law and those companies which fail to pay the bonus face prosecution.

The requirements and consequent penalties for failing to pay the THR are set out in law “UU Nomor 13, 2003” and a ministerial edict, “nomor 4 1994”. Companies must make the extra payments at least seven days before the end of the fasting month, which this year means by the 17th of October. Should companies feel that they are unable to make the payments on time, or at all, they must make a written submission to the Labour department detailing their financial situation and the results of meetings held with labour representatives on the matter.

Ordinarily those workers who have been on staff for at least one year are to receive a full extra month’s pay while those who have been employed for less than a year, but at least for three months, are meant to receive an amount proportionate to the length of time they have so far served.

In order to deal with any problems arising from the matter this year special “posko”, or action stations, have been set up in Jakarta by labour associations in which place any worker who feels he has been cheated out of his bonus can make a complaint.

7 Comments on “Tunjangan Hari Raya (THR)”

  1. Adzlina says:

    Dear Sir/ Madam,

    Is Tunjangan Hari Raya applicable to a one year contract staff?

  2. SS says:

    Dear Sir / Madam,

    Is Tunjangan Hari Raya payment can be installed in salary package for each month? (Salary package per month is inclusive of Tunjangan Hari Raya (THR)). Is this applicable? or is this vilolated the regulations/law?

    Thank you

  3. EDDIE CHU says:

    Dear Sir / Madam / Miss,

    I need to understand about the extra allowances ” TUNJANGAN THR ”

    for Hari Raya / Chinese New Year / Christmas & etc

    Our company already granted an annual bonus to all staff annually

    Is it a compulsory for all Employer to pay for all staff even to offices fixed salary staff accordingly to Indonesia Labour Law ?

    Thank you very much for your valuable advice.

    Eddie CHU

  4. Kris Chee says:

    Dear Officer In-charge,

    If our Company have been giving annual bonus to our staff annually, do we still need to give Tunjangan Hari Raya payment?

    Thank you for your advice.

    Kris Chee

  5. Azhar says:

    Dear Officer in-charge

    when, the latest we have to pay THR?

  6. Felix Villanueva says:

    Dear Sir/Madam,

    Are foreign nationals working for a company here in Indonesia also entitled in Tunjangan Hari Raya even if their employment contracts do not specify it? If it was not given/paid for the previous years of our employment, can we still collect them now along with the payment for the current year.

    Thank you for advice.

    Felix Villanueva

  7. Rena says:

    Dear Sir,

    My question would be similar to the earlier questions stated. Can we consider our company bonus (min 1 month) payout as THR? and This is paid every July which may not be the timing of religious celebration, is this ok?

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