Employees' Eid al-Fitr Allowance: Period and Value Estimation

JAKARTADAILY.ID - THR, or Religious Holiday Allowance, is non-wage income received by workers from corporations in advance of religious holidays. 

According to Circular Number M/6/HK.04/IV/2021, Minister of Manpower Ida Fauziah, THR should be paid a maximum of seven days before Eid.

Workers/laborers who get THR have a working period of one month or longer and are paid once a year in cash.

The religious holidays include Eid al-Fitr, Christmas, Nyepi, Vesak, Chinese New Year, and other holidays based on the worker's/labor's faith.

THR is one of the measures to satisfy the requirements of workers/laborers and their families on religious holidays. This policy is aimed to enhance areas of worker welfare and protection.

Workers/laborers with a working period of one month are entitled to Religious Holiday Allowance from the company, according to Minister of Manpower Regulation No. 6/2016. Workers/laborers who have worked for 12 months or more will earn a THR equal to one month's salary.

Meanwhile, workers/laborers who have worked for at least one month continuously but fewer than twelve months are granted THR proportionately, calculated by dividing the number of years of service by 12 months multiplied by one month's earnings.

Companies who have controlled the payment of religious THR in a work agreement, business regulation (PP), or a Collective Labor agreement (PKB) and it turns out to be better and greater than the foregoing rules shall pay THR to workers/laborers based on the PP or the PKB.

The amount of THR is specified in Article 3 paragraph 1 of Minister of Manpower No. 6/2016 about THR for Workers in Companies. This rule governs the computation of the THR worth depending on the employee's length of service, beginning with permanent workers and ending with contract employees.

Permenaker No. 6 of 2016 also stipulates sanctions in the form of fines for entrepreneurs who ignore/violate THR regulations.

Entrepreneurs that are late in paying THR will be fined 5% of the amount they should have paid, with the need to continue paying to persist.

Negligent employers will also face administrative fines. Entrepreneurs who violate the regulations will face penalties such as written warnings and limits on their economic activities.

The article was translated from Pikiran-Rakyat.com's article titled "Kapan THR Lebaran 2022 untuk Pekerja Cair? Simak Bocoran dan Perkiraan Nilainya".

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