Indonesia counts workers on probation, notice period as eligible for Eid festive bonus

Indonesia has clarified that workers on probation, those serving notice periods, and employees with short tenures remain eligible for the country’s mandatory Religious Holiday Allowance (THR) ahead of Eid al-Fitr, reinforcing protections for workers during the festive season.

The guidance follows a government circular outlining the implementation of the 2026 THR and the Eid al-Fitr Bonus (BHR), including provisions for platform-based workers such as online drivers and couriers. Authorities say the policy is intended to strengthen worker protection while recognising the contribution of employees across different forms of employment.

Under Indonesia’s labour rules, workers employed on fixed-term contracts (PKWT) or permanent contracts (PKWTT) are entitled to receive THR provided they have worked continuously for at least one month. Employees who are transferred to another company with uninterrupted service are also eligible, if the allowance has not been paid by the previous employer.

Importantly, employees who are dismissed within 30 days before a religious holiday remain entitled to the payment, ensuring that workers leaving their roles shortly before the festival are not excluded from the benefit.

The regulations also clarify the status of employees on probation, a period that can only apply to permanent employment contracts and may last up to three months. Workers still within this probation period are entitled to THR if they have completed more than one month of service, although the payment is calculated proportionally based on the length of service.

Employees with less than 12 months of tenure receive a prorated allowance based on their time in the company. The formula used for the calculation is:

Length of service ÷ 12 × one month’s salary.

For example, a worker who has been employed for three months and earns Rp5,000,000 per month would receive Rp1,250,000 as THR.

The government notes that the monthly wage used for calculation can be either net wages without allowances or basic salary including fixed allowances, depending on the company’s compensation structure. Employers may also provide a higher THR than the minimum mandated by the government.

Indonesia’s THR policy is grounded in Government Regulation No. 36 of 2021 on wages and Minister of Manpower Regulation No. 6 of 2016 on Religious Holiday Allowances, which require companies to provide festive payments to workers before major religious holidays.

Officials say the 2026 guidance aims to ensure clarity for employers while guaranteeing that more categories of workers, including those in probationary roles or transitioning between jobs, continue to receive financial support during the Eid celebration period.