The government through the Ministry of Manpower has issued a circular letter regulating the implementation of the provision of Holiday Allowance (THR) to employees.
The circular letter in question is SE Number M/2/HK.04/III/2024 concerning the Implementation of Providing Religious THR 2024 for Workers / Laborers in Companies. THR itself is a non-wage income that must be paid by companies to their employees ahead of religious holidays. This is as stipulated in the Minister of Manpower Regulation (Permenaker) No. 6/2016 concerning Religious Holiday Allowances for Workers/Laborers in Companies. Minister of Manpower Ida Fauziah revealed that the most important thing is that THR 2024 must be given no later than H-7 Lebaran and must be paid in full, not in installments. This means that the THR must be received by workers / laborers on April 3, 2023. Then the second decision is who is entitled to receive THR. According to Ida, religious THR is given to workers/laborers who have a working relationship with employers based on an indefinite time work agreement or a specific time work agreement (contract). Ida explained that the religious holiday allowance is given to workers or laborers with a work period of 1 month continuously or better, whether the relationship is based on PKWTT, a specific time work agreement including casual workers or daily laborers. The nominal received will differ depending on the employee’s tenure. To better understand it, here are the provisions and how to calculate the 2024 THR for employees.
THR at a glance
THR or holiday allowance, is non-wage income that must be paid by employers to workers or their families ahead of religious holidays. The religious holidays in question are Eid al-Fitr for Muslim workers, Christmas for Catholic and Protestant workers. Then, there is Nyepi for Hindu workers, and Vesak for Buddhist employees. In addition, as explained by the Ministry of Manpower, THR is mandatory to be paid to workers who have expended their labor for the company.
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Therefore, every individual or company that employs people in exchange for wages is obliged to pay holiday allowances.
How is the 2024 THR calculated?
As mentioned earlier, the provision of THR depends on the length of service of employees in a company. This calculation applies both to employees with indefinite term employment agreements (PKWTT) or permanent employees and to employees with specific time employment agreements (PKWT) or contract employees. Referring to the Minister of Manpower Circular Letter Number M/2/HK.04/III/2024 concerning the Implementation of Providing Religious Holiday Allowances in 2024 for Workers/Laborers in Companies, the amount of religious holiday allowance is given as follows:
- For workers/laborers who have had a work period of 12 (twelve) months continuously or more, 1 (one) month’s wage is given.
For example: If an employee has worked for more than 12 months and has a wage of Rp 5,000,000, then the amount of THR given is Rp 5,000,000.
- For Workers/Laborers who have a work period of 1 (one) month continuously but less than 12 (twelve) months, it is given proportionally according to the calculation: work period multiplied by one month’s wage then divided by twelve.
For example: A person works in a company with a work period of 6 months. The income earned each month is Rp 5,000,000, then the way to calculate THR is as follows: Period of employment: 6 months Income: Rp 5,000,000 THR received: 6 x 5,000,000/12 = Rp 2,500,000 Then the THR obtained on religious holidays is Rp 2,500,000. Meanwhile, for companies that determine the value of Religious THR in work agreements, company regulations, collective bargaining agreements, or customs, greater than the value of Religious THR as mentioned above, the Religious THR paid to workers/laborers is in accordance with the work agreement, company regulation, collective bargaining agreement, or custom.
Sanctions for Companies that Violate the 2024 THR Provisions
Any company that does not pay or install the THR payment on Lebaran in 2024 will be subject to sanctions as stipulated in Government Regulation (PP) No. 36/2021 concerning Wages. “The imposition of sanctions in the form of written warnings, restrictions on business activities, temporary or partial suspension of production equipment, to the suspension of business activities,” said Director General of Industrial Relations and Social Security Development Indah Anggoro Putri. Currently, there is no longer an excuse for companies not to pay or install THR. Not only that, if the company is late in paying THR, it will be subject to a fine of 5% of the total Religious THR that must be paid since the expiration of the deadline for employers to pay. Currently, the Ministry of Manpower has also established a task force command post or task force post for consulting services and law enforcement for religious holiday allowances in 2024 to monitor and serve complaints related to THR in provinces and city districts.
KH Contact
This is the explanation about the provisions and how to calculate THR 2024. So, if your KH Friend runs a business or company, it is mandatory to pay THR in accordance with applicable regulations, yes! Also, make sure that the provisions and policies regarding this THR are outlined in the employment contract so that it can protect the company and employees from the risk of disputes in the future. For that, you can utilize Kontrak Hukum in making all types of business contracts, including employee work agreements both PKWT and PKWTT.
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No need to hesitate because the services at Kontrak Hukum are lawyer approved and can be completed in just 48 hours, 100 percent online without face-to-face so it is guaranteed to be safe, easy, and certainly affordable. Let’s run a safe working relationship by visiting the KH Services – Employment Contract page. If you have questions about other business needs, feel free to consult for free at Tanya KH or send a direct message (DM) to Instagram @Kontrakhukum.
