23 September 2008

Religious Holiday Allowances (THR)

The Circular states that all employees who have worked continuously in the same company for a period of 3 months are entitled to the Religious Holiday Allowance (Tunjangan Hari Raya Agama / THR). For employees with less than 3 months continuous service there is no THR payable. Where an employee has been employed for a period in excess of 3 months but not yet 12 months, then the THR payable is pro rata based on their actual term of service. All employees engaged in continuous employment with the same employer for a period in excess of 12 months is entitled to an allowance of 1 month’s salary.

The THR must be paid no later than 7 days prior to the date of the religious holiday being celebrated. The need for this to be paid sooner rather than later is to ensure that workers have sufficient funds to satisfy their extra needs during the period. It is expected that employers will pay the THR on time.

Nevertheless, the Minister fully expects that some employers will not pay on time and the Circular instructs the various Governors, Regents, and Mayors to remind employers of the provisions and the requirements to pay on time. The Circular also allows for the establishment of special teams that are tasked with assisting those workers with complaints regarding the payment of their THR.

The Circular is current as of 3 September 2008.

1 comment:

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