Guide to Indonesia’s Public Holidays & Leaves

• Religious,
• National,
• International, and
• Commemorative. 

National holidays are marked as “red date” (“tanggal merah”) on the calendar and imply that government offices, schools, banks, and most businesses will be closed.

In addition to official public holidays, the government also provides joint leaves (“collective leave days”), primarily for public servants. The private sector may observe these days, but it is not compulsory unless included in collective labor agreements or company policy. The concept of joint leaves was introduced to stimulate the local tourism industry.

Religious holiday allowances in Indonesia: Obligations for businesses

Paying the religious holiday allowance (Tunjangan Hari Raya – THR) by employers to their employees is mandatory in Indonesia.

What is THR?

The THR is a mandatory yearly bonus given to employees at least one week before the start of the religious holiday observed by the employee (based on the employee’s religion), equivalent to one month’s salary (based on the period of employment).

The recognized religious holidays for THR payment are:

• Eid-il-Fitri for Muslims;
• Christmas for Catholics and Protestants (considered as two different religions in Indonesia);
• Nyepi for Hindus;
• Vesak for Buddhists; and
• Chinese New Year for Confucianism.

Who is eligible to receive THR, and how is it calculated?

All employees, whether permanent or contract-based, are eligible for THR, and it must be paid using Indonesian rupiah.

The amount paid is based on the employees’ service period.

Employees working for more than 12 continuous months, they are entitled to THR equivalent to one month’s salary.

For employees who have served one month or more but less than 12 months, the THR is calculated on a pro-rata basis using the following formula:

(Service period/12) x 1 month’s salary

Freelance workers are also entitled to THR. Those working for more than 12 continuous months must receive the equivalent of one month’s salary, which is calculated on the average salary they received throughout this period. For those working more than one month and less than 12 months, the THR is calculated based on the average monthly salary throughout the employment period.

Fines for non-compliance

The businesses that fail to pay the THR will be fined five percent of the THR amount, which will be used for the employees’ welfare. Further, this sanction does not waive the employer’s obligation to pay the THR. In addition to financial sanctions, employers will be subject to administrative sanctions for failure to pay the THR. These are:

• Restriction of business activities;
• Permanent or temporary suspension of production facilities; or
• Suspension of business activities

What are the sanctions for businesses that do not pay THR?

Employees can report their employer to the Ministry of Manpower if the company delays or does not pay the THR bonus. Only businesses with explicit permission from the Ministry of Manpower can delay paying this allowance.

Employers are eligible for a fine and other administrative sanctions, which include:

• A fine of five percent of the total THR owed to the employee;
• Written warning;
• Restrictions on business activities, including delays in receiving business permits or restrictions in the production capacity of goods and services;
• Temporary suspension of all production; and
• Suspension of business activities within a certain period;

These sanctions are given in stages and do not waive the employer’s obligations to pay the THR.

Further, employees who are still owed their THR from previous years must also be paid in full.

If after the sanctions are implemented and the employer still does not pay the THR, then the employee has the right to take their employer to the Industrial Relations Court.

Paid annual leave

The Manpower Law entitles all employees to 12 days of annual leave per year.

Maternity leave

Maternity leave for mothers is three months, on full pay. Half should be taken before birth, and the remainder after birth. Additionally, female employees are entitled to two days of paid absence during the first and second days of the menstrual cycle.

Paternity leave

Fathers are entitled to two days’ leave on full pay.

Sick leave

There is no set number of days for sick leave. The employee's salary would be reduced depending on how long the employee will be absent. 

Sick leave must generally be supported by a medical certificate issued by a licensed healthcare provider.

• Employer pays 100 percent of compensation for 0 to 4 months;
• Employer pays 75 percent of compensation for 4 to 8 months;
• Employer pays 50 percent of compensation for 8 to 12 months; and
• Employer pays 25 percent of compensation for the first 12 months.