Christmas Holiday Allowance 2026 in Indonesia: Deadline and How to Calculate for New Staff
Christmas falls on Friday, 25 December 2026. The religious holiday allowance rules used for Eid 2026 require payment at least seven days before the holiday, in full and not in instalments. Here is how to calculate it and plan the cash.Christmas falls on Friday, 25 December 2026, and for businesses with employees who celebrate it, the religious holiday allowance needs to be ready a few weeks from now. The allowance rules used for Eid 2026 require payment at least seven days before the religious holiday, in full and not in instalments.
The allowance is known in Indonesia as THR (tunjangan hari raya), a mandatory payment made to employees ahead of their religious holiday. The rules were reported by CNN Indonesia on 9 March 2026, based on Manpower Minister Circular Number M/3/HK.04.00/III/2026. Christmas as a national holiday appears in the 2026 holiday list published by CNBC Indonesia on 19 September 2025.
One thing to be upfront about
The circular cited above was issued ahead of Eid al-Fitr 2026. At the time of writing we have not found a circular specific to Christmas 2026. Treat the rules below as the most recent reference available for the Indonesia Christmas THR, and watch for a new announcement from the Manpower Ministry in early December.
The deadline
The rule: no later than seven days before the religious holiday.
By our own calendar count, seven days before 25 December 2026 is Friday, 18 December 2026. That date is our arithmetic, not a quote from a source, and should be confirmed against the official announcement.
Our advice: do not aim for the last day. Schedule the transfer a few working days earlier so there is room for a bank problem or a wrong account number.
Who qualifies and how much
According to CNN Indonesia:
- Who qualifies: workers with at least one month of continuous service, whether on a fixed-term agreement (PKWT) or an open-ended one (PKWTT, permanent employment).
- Service of 12 months or more: one month's pay.
- Service of one month up to less than 12 months: prorated, meaning months of service divided by 12, times one month's pay.
- How it is paid: in full, not in instalments.
- Where something higher applies: if the employment agreement, company regulations or established custom set a higher amount, the higher amount applies.
Late-payment penalties do not appear in the sources we read, so we do not cover them.
A prorating example
The figures below are an illustration with a round wage to make it easy to follow, not real data.
| Service at the holiday | Formula | THR at a wage of Rp3,000,000 a month |
|---|---|---|
| 14 months | One month's pay | Rp3,000,000 |
| 8 months | 8 divided by 12, times pay | Rp2,000,000 |
| 3 months | 3 divided by 12, times pay | Rp750,000 |
| 3 weeks | Has not reached one month | Not yet eligible under this rule |
Two questions come up often that the sources do not answer: which pay components count as "one month's pay", and how to round service that is not a whole number of months. For both, ask the local manpower office or your consultant, then apply the same method to every employee.
Steps to take from now
This section is our practical advice.
This week: build the list. Make a table with name, start date, monthly pay and length of service as of 25 December 2026. The religious allowance is paid ahead of the holiday an employee observes, so the list rests on what employees have already told you themselves. There is no need to ask for more than what determines when their allowance is paid.
Check agreements and custom. If in past years you paid more than one month's pay, or an employment agreement promises a specific amount, the higher figure is the one to use.
Add it up and match it to cash. December stacks several outflows: monthly payroll, THR, possibly holiday overtime, and peak-season stock. Put them all on one timeline:
- The last stock purchase date before the holidays.
- The THR payment date, targeted a few days before the deadline.
- The December payday.
- Expected income per week to the end of the month.
If any week looks thin, it is better to know now. Your options include chasing receivables sooner, postponing non-urgent purchases, or setting money aside from November income. Delaying the allowance or paying it in instalments is not an option under the existing rules.
Keep proof of payment. Save the transfer receipt and the calculation for each employee. If someone asks why their allowance differs from a colleague's, you can show the length of service and the formula.
Tell your staff. One short announcement with the payment date and the method removes a lot of one-to-one questions in a busy week.
New hires and contract staff
Three cases small businesses often miss:
- Contract staff. The rule says both PKWT and PKWTT workers qualify once they have at least one month of continuous service. Contract status is not a reason to skip payment.
- Seasonal extra hands. Someone hired in November to help through December may already have passed one month by Christmas. Put them on the list and prorate.
- Employees who have just passed 12 months. Check the start date carefully. A few days decide whether they receive a full month's pay or a prorated amount.
If payroll and each employee's start date are already recorded in one place such as Polynusa, length of service at the holiday date does not have to be recalculated by hand.
Note: this article summarises news reports and is not legal or tax advice. Confirm your own case with a consultant or the local manpower office.
Sources
- CNN Indonesia, 9 March 2026: Kapan Paling Lambat THR Swasta Diberikan
- CNBC Indonesia, 19 September 2025: Daftar 17 Hari Libur Nasional dan 8 Hari Cuti Bersama Tahun 2026
FAQ
When is the Christmas holiday allowance due in Indonesia in 2026?
The rules used for Eid 2026 require payment at least seven days before the holiday. By our count that is 18 December 2026, to be confirmed against the official announcement.
How is THR calculated for someone employed less than a year?
According to CNN Indonesia, service of one month up to less than 12 months is prorated: months of service divided by 12, times one month's pay.
Can THR be paid in instalments?
No. The 2026 Manpower Minister circular reported by CNN Indonesia says the allowance must be paid in full and may not be paid in instalments.