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Expats & THR (Religious Holiday Allowance)

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  • Expats & THR (Religious Holiday Allowance)

    Hi fellow axpats!

    I have been living and working in Jakarta for some years during which the THR terminology in my working contract has been bothering me, especially since none of the fellow local colleagues have an inclusion of THR in their negotiated base salary. Not knowing about THR, I have been negotiating my base salary without knowing that the so called 13th salary shall not be part of this negotiation.

    My question: Is it permitted to blend the 13th salary into the annual base salary? What is the legal reference for such a method?


    Your annual gross base salary will be IDR XXX,XXX,XXX. The Annual Base Salary is inclusive of Religious Holiday Allowance (“THR”) that will be paid in accordance with Article 4.2 below.

    4.2 Religious Celebration Allowance ("THR") In each year of the Employment Term, you will be entitled to THR which will be paid in accordance with the applicable laws and regulations.
    Maybe, there are other people having the same question. Thanks for your feedback!

  • #2
    I am not 100% sure as I didn't read all the Indonesian Manpower Law . I didn't see any reference to THR in the part of the Law related to foreign workers and in this Forum I also didn't hear of any foreigner getting THR .

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    • #3
      I searched about it in the internet , and this year's rule states that every worker who worked for more than 1 month has the right to receive the THR (does not mention foreign workers) .

      But there is one Manpower officer who stated (years ago) that THR is not for foreign workers . Other say it depends on the employer's choice (if the work contract follows the foreigner country's rules or the Indonesian rules) , .. Nobody mentions any Regulation to support his/her position .

      The Manpower Law and the new revision of it , do not mention THR in the part referring to foreign workers , so I would guess employers may use this as an argument to not pay THR to foreigners .

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      • #4
        I actually don't bother with the question whether or whether not foreigners shall receive it as my working agreement grants me THR. My concern is that it's been included in the base salary which is the reference to every negotiation with an employer. So it kind of eliminated the employer's duty to pay me a 13th salary by claiming it's included already. All my fellow local colleagues negotiate their base salary as well and receive the 13th salary on top of that through the festivity allowance (~8% annual income increase compared to mine)

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