Effective Tax Rate for December PPh 21 of Non‑Permanent Staff

The Directorate General of Taxes states that for the December 2025 tax period, the calculation and withholding of Income Tax Article 21 for non‑permanent employees paid monthly will use the monthly effective tax rate (TER). This rate applies specifically to monthly payments, unlike the method for permanent staff.

PMK No 168/2023 defines a non‑permanent employee as someone who receives income only when working, based on days worked, output units, or task completion. Employers must issue a BP21 withholding certificate each month, even when the withheld PPh 21 amount is zero, in accordance with PER‑11/PJ/2025.

The PPh 21 shown on the BP21 serves as a tax credit for the employee when filing the annual tax return (SPT). The monthly TER is prescribed in Government Regulation No 58/2023, while a daily TER is used for non‑monthly payments up to a maximum of IDR 2.5 million per day.