Providing the Religious Holiday Allowance or THR is a mandatory obligation for every company as officially regulated by the government. Accurate prorated THR calculation is essential to maintain fairness while complying with current regulations.
Based on Minister of Manpower Regulation Number 6 of 2016, employees who have worked for at least one month continuously are entitled to receive THR. If calculations are done carelessly, your company credibility may be at risk and relationships with employees could become disharmonious.
Official Prorated THR Calculation Formula
For employees with a service period of less than 12 months, you must use a proportional calculation. Here is the standard formula that you are required to use:
Prorated THR = (Length of Service in Months/12) x 1 Month Salary
One month salary here includes basic pay plus fixed allowances received by employees regularly. With this formula, every employee will receive their rights fairly according to the time contribution they have provided to the company.
Provisions for New and Resigning Employees
It is important for you to understand the specific rules to avoid misunderstandings at the end of the month. Here are the crucial points to note:
-
New Employees: The absolute requirement is having worked for at least one month. If the service period is only two weeks, the company is not yet obligated to provide THR.
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Resigning Employees (Permanent/PKWTT): For permanent employees who resign, they are still entitled to THR if the employment relationship ends at most 30 days before the religious holiday.
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Contract Employees (PKWT): Unlike permanent employees, contract workers whose contracts end before the holiday are usually not entitled to THR according to the applicable rules.
Service Period Conditions
|
Service Period Condition |
Amount of THR Received |
|
More than 12 Months |
1 Full Month Salary |
|
Between 1 to 12 Months |
Calculated Using the Prorated Formula |
|
Less than 1 Month |
Not Yet Entitled to Receive THR |
iPresens: Automated and Accurate THR Calculation Solution
Calculating THR for dozens or hundreds of employees manually is certainly risky for errors. iPresens is here to ensure all your company allowance calculations run automatically and in accordance with the law. Here are the advantages of iPresens that will simplify your tasks:
|
✅ Automated Payroll System |
The system will automatically detect the service period of each employee and calculate their prorated THR value instantly. |
|
✅ Attendance Integrated |
Attendance data and employee contract status are directly connected so there is no need to re enter data manually. |
Manage Your Team Smarter
Do not let holiday moments be disrupted by allowance calculation error drama. iPresens is the best choice for building a more professional, accurate, and transparent HR management system. You can prove the ease yourself by utilizing the FREE PERUSAHAAN package.
Get a free demo opportunity for 2 full months for a capacity of up to a maximum of 50 employees. After the trial period ends, the subscription fee remains very affordable starting from 45 thousand rupiah per month.
What are you waiting for? Register your company on the official iPresens website and activate the system today!
