Statutory holiday allowance in Indonesia: What you need to know

29 June 2020

According to Indonesian law, companies operating in Indonesia are obliged to pay a statutory holiday allowance (commonly known as “THR”) to their employees every year. Payment of THR must be made no later than seven days before the relevant religious holiday, unless otherwise agreed in the relevant employment agreement, company regulations or collective labour agreement.

This is an extract of an article by Soemadipradja & Taher, an Indonesian law firm with which Allen & Gledhill has a strategic alliance. To read the full article from the Soemadipradja & Taher website www.soemath.com, please click here.