Flexibility in Calculating Holiday Allowance (THR) | PayrollBozz
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THR calculation
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THR Calculation (Holiday Allowance)


 

THR (Holiday Allowance) is an obligation that must be paid by the entrepreneur or company to the employees before the Religious feast day. This allowance is money that is become the right of the workers. Not all the Religious feast day but only some such as Eid al-Fitr, Christmas, Nyepi and Wesak Day. THR will be distributed based on the worker’s religion.

 

There is a basic Law issued by the government regarding THR regulation. The Minister of Manpower and Transmigration has a regulation, No. 6 Year 2016 about THR Allowance for labor or employees at the company. This regulation replaces the Minister of Manpower and Transmigration Regulation No.PER.04 / MEN / 1994. This regulation requires that any person who employs another person in return for wages should pay the THR, whether it is a company, individual, foundation, or association. Meanwhile worker with one month or more working period, continuously, is the worker who is entitled to get the THR. In other words, this regulation does not distinguish the status of workers; temporary, full, or part time workers. THR must be given no later than seven days before the Religious feast day (H-7).

 

So, how to calculate THR?

The amount of THR received by each employee could be completely different. Depending on the value of fixed income received monthly and the working period.

The amount of THR

  1. Employees or laborers who already have 12 months or more working period, continuously, is one month of wages.
  2. Employees or laborers who have 1 month working period, continuously, but less than 12 months are given in proportion to the working period with the calculation; working period / 12 x 1 (one) month wages.

 

THR Calculation by PayrollBozz using a calculation based on formula so it can be adjusted with the existing policy in your company. So, you no longer need to store the expenses data or accounting. PayRollBozz as a THR Calculation Software can be accessed anywhere and anytime. THR accounting data and calculations that you need can be instantly available. THR can be set with a certain feast days. For example Moslem workers will get THR on Eid al-Fitr, while the Christian or Catholic workers will get it on Christmas. THR Software by PayrollBozz only set the fixed income. That fixed income, which later will be a reference to the amount of THR received by each worker.

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