Religious Festivity Allowance is Obligatory: Minister

    Annisa ayu artanti - 12 April 2021 17:55 WIB
    Religious Festivity Allowance is Obligatory: Minister
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    Jakarta: Providing religious festivity allowance (THR) is an obligation employers must carry out to their workers, Minister of Manpower Ida Fauziyah has said.

    "I emphasize that the THR for workers must be paid no later than 7 days prior to the religious holidays," Ida said during a virtual press conference here on Monday.

    If companies are still affected by the covid-19 pandemic and consequently unable to provide this year’s THR payment according to the time specified in the laws and regulations, governors and regents/mayors are ordered to seek solutions by requiring employers to discuss the issue with workers/laborers to reach an agreement amicably.

    As for the implementation, the THR payment is made to workers who have a continuous service period of 1 month or more. THR is also given to workers based on a work agreement for an unspecified period of time or a fixed-term work agreement.

    For workers with a continuous service period of 12 months or more, THR will be given equivalent to one month’s salary. Meanwhile, for workers with one month service period continuously, but less than 12 months, THR will be given proportionally according to the calculation of working period divided by 12 months and multiplied by 1 month’s salary.

    For workers who work based on a daily work agreement that has worked for 12 months or more, 1 month’s salary is calculated based on the average wages received during the last 12 months prior to religious holidays. Meanwhile, for workers who have worked for less than 12 months, 1 month’s salary is calculated based on the average wages received each month during the working period.


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