Every Hari Raya, A Unique Indonesian Law Obliges Employers To Pay Workers 1 Month Bonus

In Malaysia, it’s pretty common for companies to give out bonuses in conjunction with certain religious and festive holidays. For example, most bonuses are given in the same month as Chinese New Year or Hari Raya Aidilfitri.

However, these are nothing more than common practices and most of the time, it’s not even written within one’s employment contract. There is nothing really forcing our bosses to give us a bonus or even an Ang Pow when its festive time.

Tunjangan Hari Raya

Well, did you know that in our neighbouring country Indonesia, there’s actually a law that requires employers to pay one month full salary to their employees during the major religious holiday in which the employee celebrates?

Called the Tunjangan Hari Raya (THR) or ‘Religious Holiday Allowance’, it a law governed under the Republic’s Ministry of Manpower under Regulation M/6/HK.04/IV/2021 which states that:

• Permanent employees must receive financial support once a year before their longest religious festivities.
• The payment must be made in the form of money. Alternative methods are not allowed.
• The THR amount must be equivalent to the employee’s one month salary for those who have worked for 12 months continuously.
• If the employee has not worked for 12 months, the payment must be prorated in accordance to the amount of months working.
• THR must include basic salary as well as fixed monthly allowance, but doesn’t have to include bonuses.

For illustrative purposes.

Who is eligible for THR?

If you’re working in Indonesia, you would only be receiving THR if you are a permanent employee or if you’re signed under an agreement for a specific period (PKWT) or an indefinite period (PKWTT). Freelance workers, however, are not eligible for THR.

It also doesn’t matter if you’ve only worked for one month and then your respective religious holiday came along, you’re still obliged to get THR. Woah!

Furthermore, you would only receive THR if you profess the below religions which are recognised by the Indonesian government:

• Islam
• Protestantism
• Catholicism
• Hinduism
• Buddhism
• Confucianism

For illustrative purposes.

When will employees get THR?

THR will be paid out by the latest, 7 days before the employee’s religious holiday. In fact, the Indonesian Ministry of Manpower will be putting out a THR payment deadline for all employers to adhere to.

However, if all the employers and employees agree to set out a preferred payment time, THR can be paid at one specific religious holiday to all staffs, regardless of their religion.

For illustrative purposes.

Awesome! What a unique way to empower employees as well as make festivities more affordable for the masses. Do you think Malaysia should adapt THR into our law? Share your thoughts with us in the comments.

Also read: Indonesian Man Robs His Own Wife After She Decided To Leave Him