Christmas Holiday Allowance 2025: What Employees and Employers Need to Know
Christmas Holiday Allowance 2025: What Employees and Employers Need to Know
The Religious Holiday Allowance (THR) is an additional payment that employers are required to provide to employees ahead of religious celebrations. THR is not part of the basic salary, but rather an additional income intended to help employees meet their needs during major religious holidays such as Eid al-Fitr, Christmas, Nyepi, Vesak, and Lunar New Year. The disbursement of THR is generally aligned with the employee’s religious holiday or, in some cases, based on the majority religion within the company.
Based on the Minister of Manpower Regulation No. 6 of 2016 concerning Religious Holiday Allowances for Workers/Labourers in Companies, THR must be paid no later than 7 (seven) days before the respective religious holiday, which in this case is Christmas Day 2025. This requirement applies to private companies, state-owned enterprises (BUMN), and all other employers across Indonesia.
Accordingly, employers must ensure that THR for Christmas 2025 is disbursed no later than 18 December 2025.
Who is Eligible & How Much THR Will Be Paid
Employees are eligible to receive THR once they have completed at least one month of service, regardless of their employment status—whether they are permanent employees, contract employees, or daily workers.
The amount of THR varies based on length of service:
Employer Obligation
Employers are only required to provide THR once per calendar year. Therefore, employers who have already paid THR during Eid al-Fitr in 2025 are not obligated to provide an additional THR payment for Christmas 2025.
Employers are required to pay THR in full, as the regulation does not permit installment payments. THR must also be paid on time, without any delay beyond the mandatory deadline of seven days before the religious holiday.
Timely and compliant THR disbursement helps ensure smooth operations, supports employee well-being, and minimizes the risk of regulatory penalties.
For more information on how BDO can support your company and help navigate its compliance requirements, please contact our technical team at Corsec.helpdesk@bdo.co.id
Based on the Minister of Manpower Regulation No. 6 of 2016 concerning Religious Holiday Allowances for Workers/Labourers in Companies, THR must be paid no later than 7 (seven) days before the respective religious holiday, which in this case is Christmas Day 2025. This requirement applies to private companies, state-owned enterprises (BUMN), and all other employers across Indonesia.
Accordingly, employers must ensure that THR for Christmas 2025 is disbursed no later than 18 December 2025.
Who is Eligible & How Much THR Will Be Paid
Employees are eligible to receive THR once they have completed at least one month of service, regardless of their employment status—whether they are permanent employees, contract employees, or daily workers.
The amount of THR varies based on length of service:
- Employees who have worked for 12 months or longer are entitled to one month’s salary (full THR).
- Employees with less than 12 months of service will receive THR on a pro-rated basis, calculated according to the number of months they have worked.
Employer Obligation
Employers are only required to provide THR once per calendar year. Therefore, employers who have already paid THR during Eid al-Fitr in 2025 are not obligated to provide an additional THR payment for Christmas 2025.
Employers are required to pay THR in full, as the regulation does not permit installment payments. THR must also be paid on time, without any delay beyond the mandatory deadline of seven days before the religious holiday.
Timely and compliant THR disbursement helps ensure smooth operations, supports employee well-being, and minimizes the risk of regulatory penalties.
For more information on how BDO can support your company and help navigate its compliance requirements, please contact our technical team at Corsec.helpdesk@bdo.co.id