The THR formula
Under Permenaker 6/2016 (Ministry of Manpower Regulation), workers with 12 months of continuous service or more are entitled to THR equal to one month’s wage. Workers with at least one month but less than 12 months of service receive pro-rata THR: months of service ÷ 12 × one month’s wage. Example: a wage of Rp5,000,000 and 6 months of service gives 6 ÷ 12 × Rp5,000,000 = Rp2,500,000.
The wage used is the basic wage plus fixed allowances. Non-fixed allowances, such as meal or transport allowances paid according to attendance, are generally not included. Religious holiday THR must be paid no later than seven days before the holiday.