THR Tax: Why Are Civil Servants And Private Employees Different?

THR tax illustration (Pixabay)

YOGYAKARTA - Every Lebaran is indeed a day awaited for payday. And the special one will get Hari Raya allowance (THR).

However, there is a little question, why is the mechanism for the distribution of THR for PNS and private distributors different? Just knew? Let's look at the explanation below.

The THR tax between civil servants and private employees is different

There are a number of things that should be understood by the community about the difference in the distribution of civil servants and the private sector.

First, the THR distribution is not only given to active civil servants but also to retired civil servants. However, the part of the arrangement of THR distribution for active and retired civil servants is different.

In general, THR for civil servants does not only include the amount of basic salary, but also family allowances, job allowances or general allowances, to performance allowances.

Meanwhile, the THR that will be received by retired civil servants is 1 time the basic pension, which is the final basic salary for retired civil servants, according to the prevailing salary regulations.

Second, the THR received by the state servants' rights can be much higher because it includes an additional part from the previous one which only included the amount of the base salary as a formulation of the THR tax.

In Government Regulation (PP) 20/2018 concerning the Giving of Holiday Allowances in the 2018 Fiscal Year to Leaders and Non-Civil Servant Employees at Non-Structural Institutions, it is explained that the amount of THR that is given is the greatest amount of IDR 25 million.

This year, the amount of THR received may be higher because of the addition of new portions such as family allowances, job allowances, and performance allowances.

THR PNS tax is fully borne by the Government

Third, the THR that is given will not be deducted by taxes. In other words, the THR PNS tax will be fully borne by the government. In contrast to the private sector who is deducted by income tax (PPh).

As is known, the Ministry of Finance has determined that the holiday allowance (THR) for civil servants (PNS) will be given in full, after being cut last year due to the impact of the COVID-19 pandemic.

Likewise, even with private employees, for companies that do not pay THR to their employees there will be penalties that will be given by the government.

The Minister of Manpower (Menaker) Ida Fauziyah will immediately inform the penalties for companies that do not pay THR for employees with reference to the 2021 Government Regulation (PP) regarding Wages which was explained on Monday.

This penalty may take the form of a written warning, regulation of business activities, to termination of some or all of the means of production and freezing of business activities. Although penalties apply, along with fines according to statutory provisions.

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