For employees who have worked for 1 year or more, the amount of THR received will be equivalent to one month's salary. This is different from those who have not reached 1 year of service, where THR will be calculated proportionally according to their length of service. In this article, Ipresens. Will discuss how to calculate THR for employees who have not worked for 1 year, the basic formula, and various case examples.
How to Calculate Basic Employee THR
Before understanding how to calculate THR for employees who have not worked for 1 year, here are the basic provisions for granting THR in general:
Contract and Permanent Employees (PKWTT & PKWT)
Employees who have worked for 12 months or more receive THR of 1 month's full salary (basic salary + fixed allowance). Meanwhile, for employees with less than 12 months of service, THR is calculated based on proportional using the following formula:
THR = (Work Period / 12) × Monthly Salary
Casual Daily Worker (Freelance)
Freelance workers who have worked for 12 months or more are entitled to THR equal to their average monthly income for the last 12 months. For work periods of less than 12 months, the average is calculated from earnings during the work period, with the formula:
THR = (Years of Service / 12) × Average Monthly Income
How Do You Calculate THR for Employees Who haven’t Worked for 1 Year?
Providing THR is an obligation that has been regulated by the government through Minister of Manpower Regulation (Permenaker) Number 6 of 2016. THR must be given to permanent employees (PKWTT), contract employees (PKWT), to casual daily workers (freelance) even if they have not worked for 1 year. Therefore, the THR calculation is proportional so that employees still get their rights even though they have not worked for 1 year.
Basic Proportional THR Formula
THR = (Work Period / 12) × Monthly Salary
The following is a complete explanation and examples according to employee type:
Contract Employees
Contract employees who have not worked for even a year will receive THR based on their basic salary plus fixed allowances.
The following is an example of the calculation:
Sample case:
Santi started working as administrative staff at a company on March 1 2024 with a salary of 7,000,000 per month. How much THR is Santi entitled to receive if the holiday falls in May 2024?
Answer:
Santi's working period: 3 months (March, April, May)
THR calculation:
THR = (3 / 12) × 7,000,000 = 1,750,000
So, Santi's THR is 1,750,000.
Freelance Employees
THR for freelancers is calculated based on the average income received each month while working, then multiplied by the working period ratio.
Sample case:
Budi worked as a freelancer at a printing shop for 4 months. The income is:
Month 1: 3,000,000
Month 2: 2,500,000
Month 3: 4,000,000
Month 4: 3,500,000
Calculation steps:
Calculate the average monthly salary:
Average salary = (3,000,000 + 2,500,000 + 4,000,000 + 3,500,000) / 4 = 3,250,000
Calculate proportional THR:
THR = (4 / 12) × 3,250,000 = 1,083,333
So, the THR that Budi received was 1,083,333.
What are the Rules Regarding THR
As previously explained, THR is one of the workers' rights that must be fulfilled by employers.
This rule has been regulated expressly in Government Regulation (PP) no. 36 of 2021 and Minister of Manpower Regulation (Permenaker) No. 6 of 2016 concerning Religious Holiday Allowances for Workers/Labourers in Companies. Companies are required to provide THR once a year, precisely before workers' religious holidays. According to the regulations, THR must be paid no later than seven days before the religious holiday takes place. Apart from that, the Minister of Manpower also appealed to THR payments to be made early without installments, to ensure workers can use them on time.
Based on applicable regulations, THR recipients include:
Workers with an Indefinite Time Work Agreement (PKWTT).
Workers with a Specific Time Work Agreement (PKWT).
Casual daily workers who meet statutory requirements.
What are the Sanctions for Companies that are Late in Paying THR?
Holiday Allowance (THR) is an obligation that every company must fulfill to its workers or laborers. Non-compliance with the THR payment rules can result in the application of sanctions regulated in Minister of Manpower Regulation No. 6 of 2016. The following is a detailed explanation regarding the sanctions that can be imposed:
Fine of 5% of the total THR
Article 10 paragraph (1) Minister of Manpower Regulation No. 6 of 2016 regulates that companies that are late in paying THR will be subject to a fine of 5% of the total THR that must be paid. However, there are several things you need to pay attention to:
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This fine does not eliminate the company's obligation to continue paying THR according to the nominal value that workers or laborers should receive.
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The fine is valid from the end of the THR payment deadline, which is no later than seven days before the religious holiday.
Administrative Sanctions
Apart from fines, companies that do not pay THR may be subject to administrative sanctions. This is regulated in Article 11 of Minister of Manpower Regulation No. 6 of 2016, which explains that administrative sanctions are applied in accordance with applicable laws and regulations.
Forms of Administrative Sanctions:
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A written warning from an authorized party, such as the Ministry of Manpower or the local Manpower Service.
2. Restrictions on business activities, including freezing business permits if the company continues to not comply with the rules.
3. Revocation of business permits in cases of serious or repeated violations.
Dispute resolution Efforts
When workers do not receive THR rights, this case can be categorized as a rights dispute in accordance with Law no. 2 of 2004 concerning Settlement of Industrial Relations Disputes.
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Workers can report these problems through the THR Command Post provided by the Ministry of Manpower or the Manpower Service in their respective regions.
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If an agreement cannot be reached, the case can proceed to a mediation process or even an industrial relations court.
With this sanction, the government hopes that all companies can comply with THR payment regulations, so that workers' rights are fulfilled and their welfare during religious holidays can be guaranteed.
Conclusion
THR must be given to employees, even if the employee has not worked for one year, namely with a proportional calculation. The basic formula used is THR = (Period of Work / 12) × Monthly Salary. This provision applies to all types of workers, including contract employees (PKWT) and freelancers. THR is calculated based on the work period that has been undertaken up to the time the THR is awarded.
The rules for giving THR are regulated in Minister of Manpower Regulation Number 6 of 2016, which requires companies to pay THR no later than seven days before religious holidays. Companies that do not comply will be subject to sanctions in the form of a fine of 5% of the total THR that must be paid or other administrative sanctions. This aims to ensure that workers' rights are fulfilled even though their work period has not reached a full year.
