Government Regulation (PP) Number 36 of 2021 stipulates that employers are obligated to provide Religious Holiday Allowance (THR) to their employees.
The amount of THR for private sector employees is generally determined based on their monthly salary or wages. Employees who have worked for one year or more are entitled to a THR equivalent to one month's salary.
For employees who have worked less than a year, the THR amount is calculated proportionally using the formula: length of service (months) divided by 12, then multiplied by one month's salary.
Employees with the highest THR are estimated to be from the financial services and insurance sector.
This is because, according to data from the Central Bureau of Statistics (BPS), in 2022 the average net salary for employees in the financial services and insurance sector reached Rp5.18 million per month, the highest compared to other sectors.
The income of employees in the financial services and insurance sector is even significantly higher than that of government and defense sector workers (PNS/TNI/Polri), whose average salary in 2022 was only Rp3.8 million per month.
However, in actuality, government employees may receive more THR than private sector employees, as their THR is calculated from their basic salary plus various allowances.
According to PP Number 15 of 2023, the amount of THR and "thirteenth month salary" for PNS/TNI/Polri this year consists of:
* Basic salary;
* Family allowance;
* Food allowance;
* Position allowance or general allowance; and
* 50% of performance allowance according to their rank or job class.