Government Orders Full 2026 THR Payment by Employers

RRI.CO.ID, Jakarta - Indonesian Manpower Minister Yassierli emphasized that companies are required to pay the 2026 Religious Holiday Allowances (THR) in full and are prohibited from paying it in installments. The government will take action against employers who fail to meet this obligation.

“THR and the Eid Bonus (BHR) are workers’ rights that must be fulfilled. We will not hesitate to take action against employers who ignore this obligation,” Minister Yassierli said in Jakarta on Tuesday, March 3, 2026, as quoted on the official Ministry of Manpower website.

The provision is stipulated in Minister of Manpower Circular Letter Number M/3/HK.04.00/III/2026 concerning the Implementation of the 2026 Religious Holiday Allowance (THR) for workers in companies. Under this regulation, the government instructed governors to oversee THR payments at the regency and city levels.

Under the circular, THR is granted to workers who have worked continuously for at least one month, whether under indefinite-term employment agreements (PKWTT) or fixed-term agreements (PKWT).

THR must be paid no later than seven days before religious holidays, with the government encouraging earlier payments to ensure workers’ peace of mind and family planning ahead of the celebrations.

Workers with 12 months or more of continuous service are entitled to one month’s wages. Those with less than 12 months of service receive THR proportionally, calculated as length of service divided by 12, multiplied by one month’s wages.

For daily workers, the calculation is based on average wages: for 12 months or more, the average of the last 12 months. For less than 12 months, the average monthly wage during the period of employment. For workers paid by output, one month’s wages are calculated based on the average of the last 12 months.

The minister also reminded companies that if employment agreements, company regulations, collective labor agreements, or established practices stipulate THR amounts greater than the general provisions, then the higher amount must be paid.

To strengthen consultation and complaint services, the Ministry of Manpower established THR and BHR Service Posts in 2026, with one main post located at the Ministry’s One-Stop Integrated Service (PTSA) in South Jakarta.

The post provides consultation and complaint services for workers regarding THR rights, including issues related to calculations or payments not in line with regulations. Consultation services opened on March 2, 2026, while complaint services will be activated seven days before the holiday.

Complaints received will be immediately followed up by labor inspectors on duty at the post daily. Workers can also submit complaints online through the poskothr.kemnaker.go.id website or via WhatsApp at 0812-8000-1112.

Minister Yassierli urged regional administrations to establish similar posts at provincial, regency, and city manpower offices, as well as in industrial areas. These posts are expected to be integrated with the Ministry of Manpower’s post to ensure worker complaints are handled quickly and effectively. ***