[ID] How to process THR?

In Indonesia, it is mandatory for employer to pay one monthly salary, a week before their employees religious holiday celebration, at the latest. This religious holiday allowance is called THR (Tunjangan Hari Raya). This THR mandatory allowance is regulated in Indonesian Minister of Manpower Regulation No. 06/2016 March 8th, 2016.

This guide will walk you through how to setup THR Allowance in HReasily:

1. Go to Manage Company in the left sidebar.

2. Click on the Payroll Info tab.

3. Scroll down to the Pay Item List section.

4. Navigate to "Tunjangan Hari Raya (THR)" then click ACTIONS > Edit.

5. Ensure you've updated the Pay Item setting for THR shown in the picture below. Click SAVE to proceed.

Pay Item Settings for THR:

• Amount Type: Variable
• Variable Amount Type: Monthly prorated amount based on salary, up to 12 months

6. Next, go to your payroll table.

7. Choose ADD PAY ITEM and select Tunjangan Hari Raya. HReasily will automatically calculate the THR amount based on the employees' completed months of service.

Important Note:

• For employees with an employment duration of less than 1 month, the THR pay item is 0.
• For employees with an employment duration of 1 month or more but less than 12 months, the THR pay item should be prorated based on the number of completed months of employment multiplied by 1 month’s salary.
• For employees with an employment duration of 12 months or more, the THR pay item should be equal to 1 month’s salary.
• If an employee receives a salary increment, the THR payout should be based on their latest salary.