Holiday Allowance (THR) is the right of every employee that must be given by the company before Eid as a form of appreciation for their services and hard work. In this article, we will discuss in depth about how to calculate THRthe factors that influence it, and the importance of compliance with THR rules in Indonesia. Let's explore further.
What is THR?
THR is an allowance given to employees before celebrating religious holidays, such as Eid al-Fitr, Christmas, and others. Based on the Regulation of the Minister of Manpower Number 6 of 2016, every company is required to provide THR to employees who have worked for at least 1 month. However, even though it has been regulated by law, many employees and employers are still confused about how to calculate it.
Why is it Important to Calculate THR Correctly?
Discuss how to calculate THR not just about numbers, but also about rights and obligations. Employers who provide THR in accordance with legal provisions create harmonious working relationships. In addition, employees who receive THR correctly will feel appreciated, which in turn can increase productivity. When we calculate THR correctly, we prevent conflicts and disputes in the workplace.
How to Calculate THR in General
In calculating THR, there are several components that you need to know. Basically, the method of calculating THR is based on the employee's length of service. Here are the stages in how to calculate THR:
1. Determining Employee Work Period
Length of service is the main factor in calculating THR. Here are the specifics of length of service:
- Employees with length of service less than 1 month not entitled to THR.
- Employees with length of service 1 month or more entitled to receive THR.
The length of service is calculated based on the number of full months the employee has worked at the company.
2. Calculating Employee Monthly Salary
Monthly salary is the basic component in calculating THR. To calculate it, you can use a simple formula:
- THR = Monthly Salary x (Working Time in Months / 12)
If the employee's working period is 1 year (12 months), then the THR received is equivalent to a monthly salary. However, for employees who have only worked for less than a year, this formula allows for calculating the proportion of THR.
3. Example of THR Calculation
Let's take a simple example. If an employee has a monthly salary of Rp 5,000,000 and has worked for 8 months, then the way to calculate his THR is as follows:
[
THR = Gaji Bulanan \times (Masa Kerja / 12)
]
[
THR = 5.000.000 \times (8 / 12) = 3.333.333
]
In this example, the employee is entitled to receive THR of IDR 3,333,333.
Factors Affecting the Amount of THR
Although the method for calculating THR basically refers to length of service and monthly salary, there are several other factors that also need to be considered.
Employee Contract Types
Permanent employees and contract employees may have differences in the calculation method or company policy regarding THR. However, all employees who have met the requirements are still entitled to THR.
Company policy
Each company can have a different THR policy. Some companies may choose to provide THR more than what is set by the government, as a form of appreciation and incentive for employees.
Legislation
This factor is very important, where applicable regulations can affect how companies calculate and pay THR. With strict law enforcement, companies are expected to comply with paying THR according to the provisions.
THR Provision Process
After calculating THR, the next step is the distribution process. Here are the steps in providing THR:
1. THR announcement
An official announcement regarding the amount and date of THR payment must be delivered to all employees. This is important to provide transparency and reduce the potential for disputes.
2. Payment of THR
THR is usually paid one week before Eid. This gives employees time to plan the use of THR funds, such as for preparing to celebrate Eid.
3. Documentation
Companies need to document all processes related to THR, including calculation and payment. This is important for company records and as evidence if problems arise later.
THR and Tax
One thing to note is the tax that may be imposed on THR. Based on tax regulations in Indonesia, if the employee's total income including THR exceeds a certain limit, the employee will be subject to income tax.
1. Income Tax (PPh) 21
Employees who receive THR must pay attention to the non-taxable income limit (PTKP). If the income is above the PTKP, the THR received will be subject to income tax in accordance with applicable provisions.
2. Tax Deductions by Companies
Usually, tax deductions are made by the company before THR payments are made. Therefore, employees need to check their pay slips every month to ensure that tax deductions are made correctly.
Impact of Late THR Payments
Delays in THR payments can cause problems for the company, Employees who do not receive THR on time can file a complaint with the Manpower Office. In addition, non-compliance with this regulation can have a negative impact on the company's reputation.
1. Administrative Sanctions
Companies that are late or do not pay THR can be subject to administrative sanctions by the Manpower Office.
2. Industrial Relations
Another impact of the delay in THR payments is unrest in industrial relations. Employees who feel disadvantaged can protest actions that disrupt the company's performance.
Conclusion
Calculating and providing THR is an important responsibility for every entrepreneur. By understanding how to calculate THR and the factors that influence it, both employees and companies can celebrate the holidays more happily. Therefore, it is important to ensure that all calculations and payroll processes are carried out in accordance with applicable regulations. Let's create a harmonious and respectful work environment.
