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There are various public holidays throughout the year in Indonesia. In addition to official public holidays, the government also provides joint leaves (collective leave days). The concept of joint leaves was introduced to stimulate the local tourism industry and is counted as a public servants’ overall leave.

However, due to the pandemic, the government has not issued a decree on joint leaves, but this could change depending on the pandemic situation.

The public holidays for 2022 are the following dates:

New Year’s Day

  • January 1

Chinese New Year

  • February 11

Ascension of the Prophet Muhammad (Isra Mi’raj)

  • February 28

Hindu New Year

  • March 3

Good Friday

  • April 15

International Labor Day

  • May 1

Eid-al-Fitr

  • May 2-3

Waisak (Vesak)

  • May 16

Ascension of Jesus Christ

  • May 26

Pancasila Day

  • June 1

Eid-ul-Adha

  • July 9

Islamic New Year

  • July 30

Independence Day

  • August 17

Maulid Nabi

  • October 8

Christmas

  • December 25

Religious Holiday Allowances in Indonesia: Obligations for Businesses

Indonesia’s Ministry of Manpower issued Circular Letter Number M/1/HK.04/IV/2022 which states that this year’s religious allowance, Tunjangan Hari Raya (THR), must be paid in full. For the previous two years, businesses have been given leeway by the government to delay the THR bonus or pay in installments, although they had to prove their inability to pay in full.   

What is THR?

The Tunjangan Hari Raya is a yearly bonus given to employees at least one week before the start of the religious holiday observed by the employee (based on the employee’s religion). The recognized religious holidays for THR payments are:

  • Eid-il-Fitr for Muslims;
  • Christmas for Catholics and Protestants (considered two different religions in Indonesia);
  • Nyepi for Hindus;
  • Vesak for Buddhists; and
  • Chinese New Year for Confucianists.

[tips title="Did You Know"]Since the majority of Indonesian workers adhere to the Islamic faith, the practice of many businesses in the country has been to pay the THR of Muslim employees before the Eid-il-Fitr break and non-Muslim employees before the Christmas holidays.[/tips]

Who is eligible to receive THR and how is it calculated?

All local employees, whether permanent or contract-based are eligible for THR and it must be paid using Indonesian rupiah.

Businesses are not obligated to pay their foreign workers the THR bonus.

The bonus is the equivalent of one month’s salary for employees who have worked at least 12 months or more, while those who have worked less than 12 months will have their bonus calculated on a pro-rate basis.

The pro-rate basis is calculated using the following formula:

(service period/12) x 1 month’s salary

Freelance workers are also entitled to THR. Those working for more than 12 continuous months must receive the equivalent of one month’s salary, which is calculated on the average salary they received throughout this period.

For those working for more than one month and less than 12 months, the THR is calculated based on the average monthly salary throughout the employment period.  

What are the sanctions for businesses that do not pay THR?

Employees can report their employer to the Ministry of Manpower if the company delays or does not pay the THR bonus. Only businesses with explicit permission from the Ministry of Manpower can delay paying this allowance.

Employers are eligible for a fine, and other administrative sanctions which include:

  1. A fine of five percent of the total THR owed to the employee;
  2. Written warning;
  3. Restrictions on business activities including delays in receiving business permits or restrictions in the production capacity of goods and services;
  4. Temporary suspension of all production; and
  5. Suspension of business activities within a certain period;

These sanctions are given in stages and do not waiver the employer’s obligations to pay the THR.

Further, employees who are still owed their THR from previous years must also be paid in full.

If after the sanctions are implemented and the employer still does not pay the THR, then the employee has the right to take their employer to the Industrial Relations Court.

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