Indonesia Expat
Featured News

Ensuring Prompt Disbursement of Eid al-Fitr Allowance: Vice President’s Call to Private Companies

Ensuring Prompt Disbursement of Eid al-Fitr Allowance: Vice President's Call to Private Companies
Ensuring Prompt Disbursement of Eid al-Fitr Allowance: Vice President's Call to Private Companies

Vice President Ma’ruf Amin urged private companies to promptly disburse their employees’ Eid al-Fitr allowance (THR) in accordance with the government’s specified deadline.

The Religious Holiday Allowance, known as Tunjangan Hari Raya (THR), is a compulsory bonus provided to employees in Indonesia ahead of significant religious holidays like Eid al-Fitr or Christmas. This payment aims to assist employees in commemorating the holidays and managing their expenses throughout the festive period.

THR should not be ignored. Otherwise, employers will be sanctioned. Hence, I would like to urge private employers to pay attention to this matter,” Amin said to the press.

The Vice President delivered this statement at a press briefing following the inauguration of the Islamic Economy and Finance Committee (KDEKS) in the West Kalimantan Governor’s Office.

Amin also emphasised the importance of promptly disbursing the Eid al-Fitr Religious Holiday Allowance (THR) to maintain positive relationships between employers and employees, as outlined in employment regulations.

“The [Eid al-Fitr Religious Holiday Allowance (THR)] payment is designed to foster strong bonds between employers and their employees, resulting in mutual benefits. Disregarding this aspect is not advisable for any employer,” he confirmed.

The government had issued these regulations in Circular Letter No. M/2/HK.04/III/2024 from the Ministry of Manpower. It is mandated that this year’s Eid al-Fitr Religious Holiday Allowance (THR) must be disbursed no later than a week before the holiday and cannot be divided into instalments.

Amin urged employers to comply with these regulations and ensure that their workers receive their rightful allowances. According to the circular, employers are required to disburse the Eid al-Fitr Religious Holiday Allowance (THR) by the 3rd of April 2024, at the latest, with sanctions outlined for non-compliance.

Furthermore, Government Regulation No. 36 of 2021 explains the sanctions for employers who don’t pay the full Eid al-Fitr Religious Holiday Allowance (THR).

However, in Indonesia, the Religious Holiday Allowance (THR) remains non-mandatory for foreign workers in the country. Foreign workers complying with Indonesian company regulations are eligible for THR, whereas those bound by their home country’s employment laws are exempt from this benefit.

The entitlement to THR for foreign workers is determined by their employment status. Historically, foreign workers in Indonesia faced two options: to adhere to both Indonesian and home country regulations or solely comply with their home country’s laws. Companies may choose to grant THR to foreign workers at their discretion, with some providing this benefit to foreign employees as they would to domestic staff.

Related posts

Rob Davies: The Entrepreneur Behind Appsolute Digital

Indonesia Expat

World Businessmen Attending B20 Summit in Bali

Indonesia Expat

Virtual Midnight Shopping from Home

Indonesia Expat

Teenager Receives 18 Months? Jail Sentence for Insulting President Jokowi

Sania Rasyid

Why should every child learn multiple languages?

Indonesia Expat

2021: Another Indonesian Year of Living Dangerously

Indonesia Expat