How to Manage THR Settings

Article author
Learning Center Mekari
  • Updated

Generally, every employee will receive a Holiday Allowance provided by the Company. The company can calculate the THR that it gives to Talenta. THR calculation is divided into two, namely, prorate days (Days) and months (Monthly) .

But before that, you can learn how to set salary components and rates here.

Here are the steps:

1. THR Calculation Based on Prorate Days (Days)

  1. Click the "Profile" icon in the upper right corner, then select "Account Settings".
    mceclip1.png
  2. Click the "Payroll" menu and click the "THR" tab.
    mceclip2.png
  3. Select the determination of the THR policy based on prorate Days.
  4. Fill in the policy for new employees to receive THR after "x" working days.
  5. In the  Pro-Rate Setting,  enter the total number of days in the pro-rate calculation.

    The maximum number of days entered is 366.

    Example: Employee A joined the company PT Digital Talenta on January 10, 2022, with a salary of IDR 12,000,000.  It is known that the date of the holiday falls on May 2, 2022.
    Based on the calculation of the prorate setting count of days, the employee will receive THR of:

    112 : 365 × 12,000,000 = 3,682.19

    So Employee A will receive THR in 2022 of IDR 3,682,191

    *112: Obtained from the total number of days the employee worked until the holiday date.
    *365: This is the basic denominator for calculating prorate setting days.

  6. Based on the Minister of Manpower Regulation No. 6 of 2016 Article 7 paragraph (3), PKWT employees are not entitled to receive THR if the resignation date is 0 (zero) working days (30) days from the THR date. You can check Don't include in Run THR if employees who resign within 30 days of THR are not counted in Run THR based on the employment status you select in Select employment status > Add.
  7. Check Include in Run THR if an employee who resigns within 30 days of THR is calculated in Run THR and Run Payroll based on the resignation status.
  8. Determine the THR component that is calculated based on the basic salary only, or based on the basic salary, monthly allowance, and BPJS.
    11494351073817.png
  9. Determine the components that are calculated as the basis for calculating the nominal THR. The basis for calculating THR by default will refer to the basic salary (salary) but can be added with benefits according to company policy.
    UpdatePengaturanTHRexcsalary1.png
  10. Then, you can check the Exclude salary which functions to exclude the basic salary from the THR amount.

    Important
    Make sure you have added the THR Component before saving to avoid errors.

  11. You can also set how many times the salary employees receive during THR in the Multiplier settings section.  For example, employees who work 11 months can get THR 1 times their salary, 3 years 1.5 times their salary, and 10 years 2 times their salary.
    THRSETTING1.png

    - You can enter the Year (Year(s)), Month (Month(s))  which will be multiplied by a number that you can adjust.  You can only enter numbers 1 - 11 for months.
    - Click the "cross" icon to delete the Multiplier setting.
    - Click "Add" to add Multiplier settings.

  12. Click "Save".
    11494408882073.png

2. THR Calculation Based on Monthly Prorate

  1. Click the "Profile" icon in the upper right corner, then select "Account Settings".
    mceclip1.png
  2. Click the "Payroll" menu and click the "THR" tab.
    mceclip2.png
  3. Select the determination of the THR policy based on prorate Monthly.
    11494210764313.png
  4. Fill in the policy for new employees to receive THR after "x" working days.
    pasted_image_0__16_.png
  5. In the Pro-Rate Setting, THR will be calculated as follows.
    pasted_image_0__17_.png

    The following is an example of the basic calculation of THR Prorate (without additional payroll components):
    Employee B joins PT Digital Talenta on November 2, 2021, with a salary of IDR 14,000,000. Based on prorate setting calculations for months, the employee will receive THR of:

    7: 12 × 14,000,000 = 8,166,666

    So Employee B will receive THR in 2022 of IDR 8,166,666

    *7: Obtained from the total number of months the employee has worked up to the holiday.
    *12: This is the basic denominator for prorate setting monthly calculations.

  6. When "No Rounding" is activated, there is no rounding until the nominal THR is paid according to the calculation of working hours.
    pasted_image_0__18_.png
  7. Based on the Minister of Manpower Regulation No. 6 of 2016 Article 7 paragraph (3), PKWT employees are not entitled to receive THR if the resignation date is 0 (zero) working days (30) days from the THR date. You can check Don't include in Run THR if employees who resign within 30 days of THR are not counted in Run THR based on the employment status you select in Select employment status > Add .
  8. Check Include in Run THR if an employee who resigns within 30 days of THR is calculated in Run THR and Run Payroll based on the resignation status.
  9. Determine whether the THR component is calculated based on the basic salary only, or based on the basic salary, monthly allowance, and BPJS.
    11494351073817__1_.png
  10. Determine the components calculated as the basis for calculating the nominal THR. The basis for calculating THR by default will refer to the basic salary (salary) but can be added with benefits according to company policy.
    UpdatePengaturanTHRexcsalary1.png

  11. Then, you can check the Exclude salary which functions to exclude the basic salary from the THR amount.

    Important
    Make sure you have added the THR Component  before saving to avoid errors.

  12. You can also set how many times the salary employees receive during THR in the Multiplier settings section. For example, employees who work 11 months can get THR 1 times their salary, 3 years 1.5 times their salary, and 10 years 2 times their salary.
    THRSETTING1.png

    - You can enter the Year (Year(s)), Month (Month(s)) which will be multiplied by a number that you can adjust.  You can only enter numbers 1 - 11 for months.
    - Click the "cross" icon to delete the Multiplier setting.
    - Click "Add" to add Multiplier settings.

  13. Click "Save".
    11494408882073.png

This is an explanation of how to manage THR arrangements. Next, you can learn how to calculate employee THR.