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March 12, 2025 | 12:35 pm
TEMPO.CO, Jakarta - The government through the Manpower Ministry has officially issued Circular Letter (SE) Number M/2/HK.04.00/III/2025, which regulates the distribution of Eid allowances (THR) for workers and laborers in companies.
The regulation clearly states that THR payments must be made in full and cannot be paid in installments.
According to the circular, THR is provided to help workers and their families meet their needs during religious celebrations. At the end of March 2025, two major religious holidays will take place; Nyepi on March 29, 2025, and Eid al-Fitr, which is expected to fall on March 31, 2025.
The obligation to provide THR is stipulated in Government Regulation (PP) Number 36 of 2021 on Wages and Minister of Manpower Regulation Number 6 of 2016 on Holiday Allowances for Workers and Laborers in Companies.
"Religious THR must be paid in full by employers and cannot be paid in installments," states Circular Letter Number M/2/HK.04.00/III/2025, as cited on Wednesday, March 12, 2025.
Additionally, THR must be paid no later than seven days before the religious holiday. This means that if Eid al-Fitr falls on March 31, 2025, companies are required to distribute THR by March 24, 2025, at the latest.
The circular also specifies that THR is granted to employees who have worked continuously for at least one month. This applies to workers under both indefinite-term and fixed-term employment contracts.
The amount of THR varies based on the length of employment. Workers who have been employed for 12 months or more are entitled to one month’s wage as THR.
Meanwhile, those who have worked for at least one month but less than 12 months will receive a proportional amount, calculated by dividing the length of service by 12 and multiplying it by one month's wage.
The circular also includes provisions for workers under daily wage agreements. Those who have worked for 12 months or more will have their THR calculated based on their average earnings over the last 12 months. For those with less than 12 months of employment, the THR is based on the average monthly wage received during their tenure.
For workers whose wages are determined based on output or production units, the THR amount is calculated using the average income over the 12 months preceding the religious holiday.
To ensure compliance, Manpower Ministry has set up a complaint and consultation center for THR-related concerns in 2025. The center, located at PTSA, Manpower Ministry, provides in-person consultations from 8:00 AM to 2:00 PM WIB.
"Providing THR is a mandatory obligation for employers," said Minister of Manpower Yassierli in a statement from his office in Jakarta on Tuesday, March 11, 2025. Similar consultation centers have also been established at provincial, district, and municipal manpower offices across Indonesia.
Adil Al Hasan contributed to the writing of this article.
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