- The Minister of Manpower has issued Circular No. M/2/HK.04.00/III/2023 on the Granting of the Religious Holiday Allowance (Tunjangan Hari Raya – "THR") for 2023 to Employees/Laborers Working at Companies, which has been in force since 27 March 2023.
- THR should be paid to the following entitled parties: 1) Employees/laborers (collectively referred to as "Workers") who have been working continuously for a minimum period of one month; 2) Workers who have a working relationship with employers based on Work Agreements for Specific Timeframes (Perjanjian Kerja Waktu Tertentu – "PKWT") or Work Agreements for Unspecified Timeframes (Perjanjian Kerja Waktu Tidak Tertentu - "PKWTT").
- THR should be paid in line with the following provisions: 1) Workers who have been working continuously for a minimum period of 12 months: the relevant monthly wage; 2) Workers who have been working continuously for a minimum period of one month: proportionally in accordance with the following calculation: working period (months) / 12 x one month’s salary; 3) Freelancer workers: a) Workers who have been working continuously for a minimum period of 12 months: one month’s wage should be calculated based on the average wage received during the last 12 months; b) Workers who have been working for periods of less than 12 months: one month’s wage should be calculated based on the average wage received each month during the working period.
- For companies that have stipulated larger amounts of THR under their relevant working agreements, the THR should be paid in accordance with the relevant working agreements. All THR should be paid in full at least seven days prior to the religious holiday.
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