THR (Tunjangan Hari Ruwet)

Tunjangan Harai Raya (THR) or 13th Month Pay is an Asian financial privilege afforded to employees, and none more so as celebrated as in the Republic of Indonesia, the world’s largest Moslem population, as they celebrate Idul Fitri.

THR is to be paid to every worker, regardless of the religion. Christians receive it 7 days before Christmas, while Buddhist and Hindus receive it 7 days before their main religious celebration.

It is stipulated in the article 4 of the decision of the Ministry of Manpower number 4 year 1994 .

Pasal 4

1. Pemberian THR sebagaimana dimaksud pasal 2 ayat (2) disesuaikan dengan hari raya Keagamaan, masing-masing pekerja kecuali kesepakatan pengusaha dan pekerja menentukan lain.

2. Pembayaran THR sebagairnana dimaksud dalam ayat (1) wajib dibayarkan oleh pengusaha selambat-lambatnya 7 (tujuh) hari sebelum Hari Raya Keagamaan.

The law makes absolutely no distinction of nationality (“Pekerja adalah tenaga kerja yang bekerja pada Pengusaha dengan menerima upah“). Any worker with more than 3 months in a company is eligible for the payment of THR, which is calculated as:

  • 1 month of salary for any worker with 12 months + seniority in the company
  • THR will be proportional to the seniority of those who have a seniority in between 3 to 12 months
  • Pro-rata calculation based on the entry of the regular employee

Companies that fail to provide such benefit would face immediate prosecution unless they can prove that they are on the verge of bankrupcy (which is a motive for exemption).

Also, part of the THR can be substituted or negotiated — with the agreement of the employee — by other means than money (ex: medicine, travel vouchers, and other amenities). However, this should be written and reflected in the working contract.

Which makes it, really, Tunjangan Hari Ruwet (THR) …

Complicated Money.

About Asmartrock

N. Mark Castro is the chief political communications strategist for PT AsiaLeads, a political and communications policy-making body based in Jakarta, Indonesia. He is also the Executive Director at the Southeast Asia Consulting Group, an investment advisory company assisting clients roll out their presence for the ASEAN Economic Integration in partnership with government. The views posted here are his own and do not in any way reflect the views of the companies he represents.

Posted on July 31, 2012, in General and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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