In Indonesia, it is mandatory for employer to pay one monthly salary, a week before their employees religious holiday celebration, at the latest. This religious holiday allowance is called THR (Tunjangan Hari Raya). This THR mandatory allowance is regulated in Indonesian Minister of Manpower Regulation No. 06/2016 March 8th, 2016.

This guide will walk you through how to setup THR Allowance in HReasily:

1. Go to Manage Company on the left sidebar

2. Navigate to Payroll Info tab

3. Scroll down to the Pay Item List section

4. Navigate to 'Tunjangan Hari Raya (THR)' then click ACTIONS > Edit

5. Ensure you've updated the Pay Item setting for THR shown in the picture below. Hit SAVE to proceed

Pay Item Settings for THR:

  • Amount Type: Variable

  • Variable Amount Type: Monthly prorated amount based on salary, up to 12 months

6. Next, go to your Payroll Table

7. From here, choose ADD PAY ITEM and choose Tunjangan Hari Raya

8. HReasily will automatically calculate the THR amount based on employees' completed months of service.

Note:

  • When employee whose employment duration is less than 1 month, then THR Pay item is ZERO

  • When employee whose employment duration is more than or equal to 1 month, and less than 12 months, then the THR pay item should prorate based on completed months of employment times 1 month’s salary

  • When employee whose employment duration is equal to or more than 12 months, then the THR pay item should be equal to 1 month’s salary

  • When employee has salary increment, then the THR payout should be based on the latest employment salary

Did this answer your question?