This is the History of Giving Holiday Allowances (THR) in Indonesia

The term THR was introduced by the Prime Minister of Masyumi, Soekiman Wirjosandjojo

Hari Raya allowance (THR) is one of the things that workers look forward to ahead of Eid al-Fitr. The company is obliged to pay this non-wage income to workers/ laborers ahead of religious holidays in Indonesia. 

The THR discussion has become a hot topic that has no end to discuss, one of which is the long history that accompanies it.

THR is generally paid by employers to workers in the form of money given close to religious celebrations adhered to by workers.

The amount of THR given to workers who have worked for one year is one time salary. Meanwhile, for workers who are less than a year old, THR will be paid proportionally. However, some companies pay THR in the form of basic necessities.

Reporting from sptsk-spsi.org, the history of THR began in Indonesia in 1951. The term THR was introduced by the Prime Minister from Masyumi, Soekiman Wirjosandjojo, as well as the chairman of the cabinet in power at that time, the Sukiman Suwirjo Cabinet.

One of the work programs carried out by this cabinet in order to improve the welfare of employees and state apparatus (pamong pradja or civil servants) is allowances.

This policy reaps the pros and cons of various groups. Workers became the group that protested this benefits policy. The workers took action to demand the government to issue the same policy for the company to its workers. This is done because workers feel they are participating in contributing to the national economy.

Finally, the government issued a regulation so that companies are willing to provide THR to their employees. Since then, the term THR is popular in Indonesia. However, the official policy on THR was officially issued several years after the regime changed.

In the New Order, the government issued Regulation of the Minister of Manpower of the Republic of Indonesia No. 04/1994 on Religious THR for workers in companies. This regulation strengthens the legal umbrella for workers regarding obtaining THR.

During the Reformation period, the regulation was refined through Law No. 13 of 2013 concerning Manpower, one of which regulates THR. (tempo)

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