Cara Hitung THR: Dasar Upah, Proporsional, dan Pajaknya

Every holiday season, the same question arises in the office group: why is my THR not exactly the same as my monthly salary? Those asking are rarely accusing anyone of wrongdoing. The numbers are indeed different, and often both HR and employees feel their calculations are correct.

The discrepancy almost always stems from three points that are rarely read in full.

The basis is not the large number on the payslip

The Minister of Manpower Regulation Number 6 of 2016 uses the term "one month's wages," not "one month's income." The difference is significant. This regulation mentions two possible calculation bases: wages without allowances, which is the net wage, or basic wages including fixed allowances.

This means that meal and transportation allowances that are disbursed based on attendance are not included in the calculation. Such components fall into the category of non-fixed allowances, and Government Regulation Number 36 of 2021 on Wages indeed separates them explicitly from fixed allowances.

If your take-home pay is high due to attendance components, the THR will feel smaller. That is not a calculation error.

The denominator is always twelve

The right to THR opens after one full month of continuous work. Many people still use a three-month benchmark, which was indeed correct at one time: the three-month requirement originated from the Minister of Manpower Regulation PER.04/MEN/1994, which was revoked on March 8, 2016.

A work period of twelve months or more entitles you to one month's wages. Below that, it is proportional, meaning the work period is divided by twelve and then multiplied by one month's wages. Note the denominator. An employee who has worked for five months receives five twelfths, not five fifths.

Daily workers have their own formula. After twelve months or more, the basis is the average wage of the last twelve months before the holiday. If not yet a year, the basis is the average wage during the actual working period.

THR is subject to tax, and deductions accumulate in one month

This part often comes as a surprise. THR is classified as irregular income, and since PMK Number 168 of 2023 came into effect, regular and irregular income are no longer separated. Both are summed first, then multiplied by the average effective monthly rate, which is listed in Government Regulation Number 58 of 2023.

The Indonesian Tax Consultant Association once provided an easy-to-follow example. A permanent employee with a status of TK/0 and a gross salary of Rp 8 million per month is subject to an effective rate of category A of 1.5 percent. In the month they receive THR equal to one month's salary, the gross becomes Rp 16 million, and the rate increases to 7 percent.

However, this is not an additional tax. The Directorate General of Taxes emphasizes that the monthly effective rate is only used for tax periods other than the last tax period. In the last tax period, the annual calculation reverts to the rate in Article 17 paragraph (1) letter a of the Income Tax Law, so the total for the year remains the same as long as the Taxable Income does not change. If there is an over-deduction, the excess can be compensated in the following tax period.

Deadline H-7, and a five percent fine if late

THR must be paid no later than seven days before the religious holiday, paid in full, not in installments. If the deadline is missed, Article 62 of Government Regulation 36/2021 along with Article 10 of Minister of Manpower Regulation 6/2016 imposes a fine of 5 percent of the total THR that should have been paid. The fine does not eliminate the obligation to pay the THR.

There are further layers, starting from written warnings, restrictions on business activities, temporary cessation of part or all production equipment, to freezing business activities.

As for how often this happens, there is a picture. From March 28 to April 15, 2023, the Ministry of Manpower handled 1,988 reports related to THR, consisting of 1,050 consultations and 938 complaints.

If you just need the numbers, the THR calculator already contains the proportional formula, daily worker variants, and estimated PPh 21 deductions.

One note to avoid misreference. The Wage Regulation has been amended twice, most recently by Government Regulation Number 49 of 2025, which takes effect from December 17, 2025. This change touches on minimum wage articles and wage scale structure, not Article 62. The THR fine provisions above still apply.

THR is not one month's salary that you receive.

The basis is not the large number on the payslip

The denominator is always twelve

THR is subject to tax, and deductions accumulate in one month

Deadline H-7, and a five percent fine if late

Sources