Glossary/THR (Indonesia)
Pay
THR (Indonesia)
THR is not a discretionary bonus. After 12 months of service it is a full extra month; after one month it is pro-rated. A mixed Muslim, Christian, and Hindu team means more than one payroll event a year if you follow each employee's holiday.
Accrue it. Termination packages include THR pro-rata. It sits on top of BPJS and on top of the monthly gross in our Indonesia salary table.
Countries
Where this shows up
FAQ
Questions we get
- Is THR optional?
- No. It is a statutory payment under Indonesian wage rules, not a performance bonus you can skip.
Related
Other terms
13th-month salary
A statutory or customary extra month of pay on top of the twelve monthly gross payments, common across Southeast Asia, Latin America, and parts of Europe.
Tet bonus
The Lunar New Year payment in Vietnam. It is customary and commercially expected, not a single statutory 13th-month formula in the Labour Code.
Payroll
The monthly cycle that pays the employee, withholds what the country requires, and files employer social charges, tax, and any statutory extra month.
Reviewed 11 September 2026. Statutory figures follow the country hiring guides. This is a briefing for multinational employers, not legal advice. For Indonesia, start with the hiring guide.
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