JAKARTA - Minister of Finance Purbaya Yudhi Sadewa responded to protests regarding tax cuts on the Raya Allowance (THR) of private employees.
He assessed that the current tax provisions are fair enough, both for private workers and the Civil Service (ASN).
Purbaya explained that the THR tax for ASN is borne by the government because they are employees working in the government environment.
Meanwhile, for private employees, the mechanism for tax deductions on THR depends on the policies of each company and in some cases, companies can also choose to bear the tax on their employees so that the THR received remains intact.
According to him, if private workers feel objections because the THR they receive is reduced due to taxes, then this should be conveyed to the company where they work.
"It's a fairly fair tax calculation process. The government for ASN is borne by the boss (government). So, if the private sector protests, it protests to the boss," said Purbaya, quoted Sunday, March 8.
On the same occasion, Director General of Taxes of the Ministry of Finance Bimo Wijayanto also conveyed that the THR for ASN as well as members of the TNI and Polri is basically still subject to tax, but because their salaries are sourced from the State Budget (APBN), the tax is borne by the government.
Bimo explained that THR is included in the category of irregular income received by workers in a year, such as bonuses or 13th salaries.
"All of them are tax-deductible. This THR is part of an irregular income, it can be one or two times, the 13th salary. If the ASN TNI/Polri is also deducted (tax), it is only because the funding from the state budget is borne by the government," he said.
He added that for private workers there were certain schemes that allowed the THR tax to be borne by the company, for example through the gross-up mechanism, so that employees still received the THR in full.
"Some private employees have gross-up paid by their respective companies, so they accept it in full," he explained.
The Directorate General of Taxes (DJP) of the Ministry of Finance explained that the calculation of tax on THR is carried out using the Average Effective Rate (TER) which is then multiplied by gross income.
The DJP considers the calculation method to be relatively simple and not complicated, for example, a permanent employee named Rana who works throughout 2025 receives a monthly salary of IDR 10 million, without additional income, and is married without dependents.
If Rana receives THR equal to one month's salary in March 2025, receives overtime pay in February, May, and November, and a bonus equal to one month's salary in December, then the calculation of his tax is as follows:
- Gross annual income: Rp145,960,000- Post allowance (5 percent of gross income, maximum Rp6,000,000): Rp6,000,000- Pension dues Rp200 thousand per month: Rp2,400,000- Net annual income: Rp137,560,000- Income Tax Exempt (PTKP) K/0: Rp58,500,000- Taxable income: Rp79,060,000
Thus, the total income tax due under Article 21 in one year reaches IDR 5,859,000, with details:
- Layer I (5 percent to Rp60 million): Rp3,000,000- Layer II (15 percent to Rp250 million): Rp2,859,000
The total tax is divided into Rp4,688,600 paid from January to November, and Rp1,170,400 in December.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
