Jakarta. Ahead of Eid al-Fitr, the government has reaffirmed employers' obligation to provide the Tunjangan Hari Raya (THR), or Eid bonus, to private sector workers. Manpower Minister Yassierli recently issued a circular letter outlining the rules for THR distribution, emphasizing that it must be paid in full and on time.

In a significant policy shift, the government has also urged ride-hailing and delivery companies to provide Eid bonuses for online drivers and couriers, extending financial relief to gig workers who traditionally do not receive THR.

What is THR?

THR is a mandatory religious holiday allowance employers must provide their employees before major religious celebrations. For Muslim workers, this falls before Eid al-Fitr. The requirement is regulated under Government Regulation No. 36 of 2021 on Wages and Manpower Minister Regulation No. 6 of 2016 on THR.

Who is Eligible for THR?

Under the existing regulations, private sector employees are entitled to THR if they meet the following criteria:

1. Minimum One Month of Employment

   • Employees who have worked for at least one month continuously—whether under an indefinite (PKWTT) or fixed-term (PKWT) contract—are eligible.
   • This includes daily wage workers and those employed under a piece-rate system, provided they meet legal requirements. A piece-rate system is a payment method where workers are paid based on the number of units they produce or tasks they complete, rather than receiving a fixed hourly wage or monthly salary.

2. Workers with One Year or More of Service

   • Employees who have worked for 12 months or longer are entitled to one month’s salary as THR.

3. Workers with Less Than One Year of Service

   • Employees with less than 12 months of service receive a proportional THR payment based on their length of employment.

THR for Ride-Hailing and Delivery Drivers

For the first time, app-based transport and delivery service companies are being encouraged to provide holiday bonuses to online drivers and couriers. This move follows President Prabowo Subianto’s directive to extend financial relief to informal gig workers.

Manpower Minister Yassierli issued a circular instructing ride-hailing and delivery companies to grant Eid bonuses in cash. According to the directive:

• High-performing and productive drivers should receive a bonus equivalent to 20 percent of their average net monthly income over the past 12 months.
• Other drivers should also receive bonuses, subject to the company’s financial capacity.
• Payments must be made no later than seven days before Eid.

When Should THR Be Paid?

The regulation mandates that THR must be paid no later than seven days before Eid al-Fitr. Employers cannot pay it in installments—the full amount must be disbursed in a single payment.

Government Oversight and Complaint Handling

To ensure compliance, the Manpower Ministry has established the 2025 THR Task Force at its headquarters. This task force serves as a platform for workers to seek consultations and report non-compliance by employers.

What Happens if a Company Fails to Pay THR?

If a company fails to pay THR on time or in full, it may face legal and administrative penalties under Indonesian labor laws.

According to Government Regulation No. 36 of 2021 on Wages, non-compliant companies may be subject to:

• Fines: Employers can be fined 5 percent of the total THR amount owed if they fail to meet the payment deadline (seven days before Eid).
• Work Restrictions: Authorities may impose temporary business suspensions or freeze certain company operations until the THR obligations are fulfilled.