One month’s salary, due seven days before the holiday

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And a 5% penalty if it is late.

In this guide
  1. The amount
  2. The deadline
  3. Which holiday
  4. It is separate from severance
  5. Contracts and wage structure
  6. PKWT and THR
  7. Minimum wages
  8. Total employment cost
  9. If THR is late or short

Tunjangan Hari Raya — THR — is a mandatory annual religious holiday bonus, and it functions effectively as a 13th month.

The amount

Typically one month's salary for employees with a year or more of service. Prorated below that.

The deadline

It must be paid at least seven days before the relevant religious holiday.

Late payment incurs a 5% penalty.

Which holiday

The relevant religious holiday for the employee — so the timing varies depending on the employee's religion rather than following a single national date.

It is separate from severance

THR is an annual entitlement, unconnected to termination. If you leave partway through a year, the position on prorating depends on your circumstances.

Contracts and wage structure

Because both THR and severance are calculated on monthly salary, how your package is structured matters.

PP 35/2021 defines the salary components used for severance and BPJS calculations. A package weighted toward allowances outside that definition produces smaller entitlements.

Ask at offer stage what counts as salary for THR and severance purposes.

PKWT and THR

Fixed-term employees receive THR, though the prorating follows their service length.

Minimum wages

Indonesia sets minimum wages at provincial (UMP) and municipal (UMK) level, so the applicable floor depends on where you work rather than a national figure.

Total employment cost

Combined with BPJS at 10 to 12% and severance obligations that can reach 25 or more months for long-tenured employees, total employment cost is substantially higher than base salary suggests.

That is worth knowing when negotiating: your cost to the employer is well above your salary.

If THR is late or short

The 5% penalty applies. Raise it with your employer, then the local Manpower Office.

Frequently asked questions

What is THR?
Tunjangan Hari Raya, a mandatory annual religious holiday bonus typically equal to one month’s salary for employees with a year or more of service, prorated below that.
When must THR be paid?
At least seven days before the relevant religious holiday. Late payment incurs a 5% penalty.
Does the timing follow a national date?
No. It follows the relevant religious holiday for the employee, so timing varies by the employee’s religion.
Why does salary structure matter?
Because both THR and severance are calculated on monthly salary, and PP 35/2021 defines which components count. Allowances outside that definition produce smaller entitlements.
Is there a national minimum wage?
No. Indonesia sets minimum wages at provincial (UMP) and municipal (UMK) level, so the floor depends on where you work.

Sources

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