{"id":16842,"date":"2026-03-13T10:00:00","date_gmt":"2026-03-13T03:00:00","guid":{"rendered":"https:\/\/labamu.co.id\/uncategorized-en\/employee-thr-calculation-how-to-calculate-it-and-its-impact-on-cash-flow\/"},"modified":"2026-03-13T11:51:19","modified_gmt":"2026-03-13T04:51:19","slug":"employee-thr-calculation-how-to-calculate-it-and-its-impact-on-cash-flow","status":"publish","type":"post","link":"https:\/\/labamu.co.id\/en\/article\/employee-thr-calculation-how-to-calculate-it-and-its-impact-on-cash-flow\/","title":{"rendered":"Employee THR Calculation: How to Calculate It and Its Impact on Cash Flow"},"content":{"rendered":"\n<p>Employee THR calculation is an important aspect you need to understand if you work in a company or manage a business with employees.<\/p>\n\n<p>THR, or Tunjangan Hari Raya (Holiday Allowance), is an additional income that companies are required to provide to employees ahead of religious holidays such as Eid al-Fitr, Christmas, Nyepi, Vesak, or Lunar New Year.<\/p>\n\n<p>THR is not part of the basic salary, but it is an employee entitlement provided by the company as a form of support so employees can meet their needs during the holiday celebrations.<\/p>\n\n<p>In Indonesia, the provision of THR is regulated under the Minister of Manpower Regulation No. 6 of 2016. This regulation states that every company is required to provide THR to employees who meet the eligibility criteria. <\/p>\n\n<p>If a company fails to fulfill this obligation, it may be subject to administrative sanctions in accordance with the applicable regulations.<\/p>\n\n<p>Therefore, understanding how to calculate employee THR is important not only for employees but also for companies to ensure compliance with regulations and to manage their finances effectively.<\/p>\n\n<div style=\"height:4px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\"><strong>Employee THR Calculation Based on Employment Status and Length of Service<\/strong><\/h2>\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"723\" src=\"https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-1-1024x723.webp\" alt=\"\" class=\"wp-image-16821\" srcset=\"https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-1-1024x723.webp 1024w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-1-300x212.webp 300w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-1-768x542.webp 768w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-1.webp 1530w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n<p><\/p>\n\n<p>In practice, the calculation of employee THR is not always the same for every worker. The amount of THR generally depends on the employee\u2019s status and their length of service with the company.<br\/> <br\/> <\/p>\n\n<h3 class=\"wp-block-heading\"><strong>1. Permanent Employees<\/strong><\/h3>\n\n<p>Permanent employees who have worked for at least 12 months typically receive THR equivalent to one month\u2019s salary. This means the THR amount is equal to the employee\u2019s monthly salary. <\/p>\n\n<p>So, if your basic salary is IDR 4,800,000, the THR you would receive is:<\/p>\n\n<p><strong>THR = IDR 4,800,000<\/strong><\/p>\n\n<p>However, if your length of service is less than one year, the employee THR is calculated proportionally (prorated). The formula used is: <\/p>\n\n<p><strong>(Length of service in months \u00f7 12) \u00d7 1 month\u2019s salary<\/strong><\/p>\n\n<p>Example Calculation:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Length of service: 7 months<\/li>\n\n\n\n<li>Monthly salary: IDR 4,200,000<\/li>\n<\/ul>\n\n<p>Calculation:<\/p>\n\n<p><strong>7 \/ 12 \u00d7 IDR 4,200,000<\/strong><\/p>\n\n<p><strong>= 0,583 \u00d7 IDR 4,200,000<\/strong><\/p>\n\n<p><strong>= IDR 2,450,000<\/strong><\/p>\n\n<p>So, the THR you would receive is approximately IDR 2,450,000.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>2. THR Calculation for Contract Employees<\/strong><\/h3>\n\n<p>Contract employees are also entitled to receive THR as long as they have worked for at least one month. The calculation is usually the same as for permanent employees whose length of service is less than one year. The formula is the same, namely:  <\/p>\n\n<p><strong>THR = (Length of Service \u00f7 12) \u00d7 Basic Salary<\/strong><\/p>\n\n<p>Example:<\/p>\n\n<p>If you have worked for 9 months with a basic salary of IDR 3,900,000, then:<\/p>\n\n<p><strong>9 \/ 12 \u00d7 IDR 3,900,000.<\/strong><\/p>\n\n<p><strong>= 0,75 \u00d7 IDR 3,900,000.<\/strong><\/p>\n\n<p><strong>= IDR 2,925,000<\/strong><\/p>\n\n<p>Thus, the THR you would receive is approximately IDR 2,925,000.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>3. Daily\/Hourly Employees<\/strong><\/h3>\n\n<p><br\/>Daily or freelance employees are also entitled to receive THR as long as they have worked continuously for a certain period before the holiday. Companies usually calculate it based on the average earnings during the employment period. <\/p>\n\n<p>Example:<\/p>\n\n<p>If you have worked 210 days in a year with an average monthly income of IDR 3,700,000, the calculation is:<\/p>\n\n<p><strong>210 \/ 365 \u00d7 IDR 3,700,000.<\/strong><\/p>\n\n<p><strong>= IDR 2,128,767<\/strong><\/p>\n\n<p>This means the THR you would receive is approximately IDR 2.1 million.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>4. THR Calculation for New Employees<\/strong><\/h3>\n\n<p>New employees are still entitled to receive THR as long as they have worked for at least one month before the holiday.<\/p>\n\n<p>Example:<\/p>\n\n<p>If you have worked for 4 months with a basic salary of IDR 4,400,000, then:<\/p>\n\n<p><strong>4 \/ 12 \u00d7 IDR 4,400,000.<\/strong><\/p>\n\n<p><strong>= 0,333 \u00d7 IDR 4,400,000.<\/strong><\/p>\n\n<p><strong>= IDR 1,466,667<\/strong><\/p>\n\n<p>So, the THR received is approximately IDR 1.46 million.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>5. Employees Who Resign<\/strong><\/h3>\n\n<p>In certain conditions, employees who resign are still entitled to receive THR as long as they meet the required length of service.<\/p>\n\n<p>Example:<\/p>\n\n<p>If you worked for 8 months before resigning with a basic salary of IDR 4,100,000, then:<\/p>\n\n<p><strong>8 \/ 12 \u00d7 IDR 4,100,000<\/strong><\/p>\n\n<p><strong>= 0,667 \u00d7 IDR 4,100,000<\/strong><\/p>\n\n<p><strong>= IDR 2,734,700<\/strong><\/p>\n\n<p>However, if the employment relationship ended well before the THR payment period according to company policy, the company is not obligated to provide THR.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>6. Employees on Leave<\/strong><\/h3>\n\n<p>Employees on leave\u2014whether annual leave, sick leave, or maternity leave\u2014are still entitled to receive THR as long as their employment relationship remains active.<\/p>\n\n<p>For example, if you have worked for 10 months with a basic salary of IDR 3,850,000, then:<\/p>\n\n<p><strong>10 \/ 12 \u00d7 IDR 3,850,000<\/strong><\/p>\n\n<p><strong>= 0,833 \u00d7 IDR 3,850,000<\/strong><\/p>\n\n<p><strong>= IDR 3,205,000<\/strong><\/p>\n\n<div style=\"height:4px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\"><strong>The Impact of Employee THR Calculation on Company Cash Flow<\/strong><\/h2>\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"723\" src=\"https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-2-1024x723.webp\" alt=\"\" class=\"wp-image-16822\" srcset=\"https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-2-1024x723.webp 1024w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-2-300x212.webp 300w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-2-768x542.webp 768w, https:\/\/labamu.co.id\/wp-content\/uploads\/2026\/03\/Art3-2.webp 1530w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n<p><\/p>\n\n<p>For companies, THR payments are often one of the largest single expenses. If not managed properly, this can affect the business\u2019s cash flow. Therefore, companies need the right strategies to manage their finances effectively.  <\/p>\n\n<h3 class=\"wp-block-heading\"><strong>1. Plan THR Funds from the Beginning of the Year<\/strong><\/h3>\n\n<p>Salah satu cara paling efektif adalah mulai menyisihkan dana THR sejak awal tahun. Beberapa langkah yang bisa dilakukan: <\/p>\n\n<ul class=\"wp-block-list\">\n<li>Calculate the total THR liability based on the number of employees.<\/li>\n\n\n\n<li>Create an annual cost projection for employee allowances.<\/li>\n\n\n\n<li>Set aside a portion of funds each month as a THR reserve.<\/li>\n<\/ul>\n\n<p>This way, the company will not feel burdened when it comes time to pay THR ahead of the holidays.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>2. Use an Automated Payroll System<\/strong><\/h3>\n\n<p>Calculating THR manually often takes time and carries the risk of errors. This is especially true for companies with many employees and various employment statuses. <\/p>\n\n<p>By using an automated payroll system, companies can:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Calculate THR quickly and accurately<\/li>\n\n\n\n<li>Reduce the risk of calculation errors<\/li>\n\n\n\n<li>Store employee data more systematically<\/li>\n\n\n\n<li>Simplify the financial reporting process<\/li>\n<\/ul>\n\n<p>Such technology also helps HR work more efficiently in managing employee administration.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>3. Link Bonuses to Performance<\/strong><\/h3>\n\n<p>In addition to THR, many companies also provide annual bonuses to employees. To keep expenses under control, bonuses should be awarded based on performance achievements. Some steps that can be taken include:  <\/p>\n\n<ul class=\"wp-block-list\">\n<li>Set clear KPIs for each position<\/li>\n\n\n\n<li>Conduct performance evaluations objectively<\/li>\n\n\n\n<li>Provide transparency regarding the basis for bonus allocation<\/li>\n<\/ul>\n\n<p>With this approach, companies can boost employee motivation while maintaining financial stability.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>4. Implement a Flexible Payment Scheme<\/strong><\/h3>\n\n<p>In certain situations, a company may not have sufficient cash flow to pay bonuses all at once. Therefore, the company can implement several alternatives, such as: <\/p>\n\n<ul class=\"wp-block-list\">\n<li>Pay bonuses in installments<\/li>\n\n\n\n<li>Provide bonuses in the form of non-cash benefits<\/li>\n\n\n\n<li>Offer project-based incentives<\/li>\n<\/ul>\n\n<p>This strategy helps the company continue to reward employees without straining its finances.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>5. Conduct Regular Internal Audits<\/strong><\/h3>\n\n<p>Internal audits are an important step to ensure that all company obligations are accurately recorded. Make sure to review the following aspects: <\/p>\n\n<ul class=\"wp-block-list\">\n<li>Availability of THR funds<\/li>\n\n\n\n<li>Accuracy of employee data<\/li>\n\n\n\n<li>Allowance calculations in accordance with regulations<\/li>\n<\/ul>\n\n<p>With regular audits, companies can avoid administrative errors while maintaining stable business cash flow.<\/p>\n\n<h2 class=\"wp-block-heading\"><strong>Staff Management by Labamu<\/strong><\/h2>\n\n<p>Managing employees is not just about calculating THR, but also about organizing your team so that business operations run more efficiently. For this, you can leverage Labamu\u2019s <a href=\"https:\/\/labamu.co.id\/en\/solutions\/labamu-staff\/\">Staff Managemen<\/a>t as a more practical solution. <\/p>\n\n<p>This feature helps you manage staff more easily, from adding team members and setting access rights to monitoring employee activities in real time. <\/p>\n\n<p>In addition to improving operational efficiency, <a href=\"https:\/\/labamu.co.id\/en\/solutions\/labamu-staff\/\">Staff Management<\/a> also enhances system security, as each staff member is granted access only according to their responsibilities.<\/p>\n\n<p>If you want a more organized, efficient, and modern team management system, <a href=\"https:\/\/labamu.co.id\/en\/solutions\/labamu-staff\/\">Staff Management<\/a> is the right solution to help your business grow better. Grow Smarter with Labamu! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employee THR calculation is an important aspect you need to understand if you work in a company or manage a business with employees. THR, or Tunjangan Hari Raya (Holiday Allowance), is an additional income that companies are required to provide to employees ahead of religious holidays such as Eid al-Fitr, Christmas, Nyepi, Vesak, or Lunar [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":16841,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"download_link":"","footnotes":""},"categories":[219,221,249,558,514],"tags":[],"class_list":["post-16842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-business","category-cash-flow","category-how-to-calculate-thr-holiday-allowance","category-thr"],"acf":[],"aioseo_notices":[],"meta_description":"Employee THR calculations must comply with labor regulations. Learn the formulas, calculations based on length of service, and strategies to manage company finances.<br><br> ","views":0,"_links":{"self":[{"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/posts\/16842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/comments?post=16842"}],"version-history":[{"count":1,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/posts\/16842\/revisions"}],"predecessor-version":[{"id":16843,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/posts\/16842\/revisions\/16843"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/media\/16841"}],"wp:attachment":[{"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/media?parent=16842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/categories?post=16842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/labamu.co.id\/en\/wp-json\/wp\/v2\/tags?post=16842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}