Contents of this article are applicable to the following users

Product: PayrollAny

Platform: Web

This guide will cover the following:

PPh21 Calculations

Monthly Effective Tax Rate (TER Bulanan)

The Monthly Effective Tax Rate (TER) is a simplified method for calculating PPh21 (Income Tax Article 21) for certain taxpayers. TER rates are applicable to:

Permanent and Contract Employee
from January to November of the tax year (except resigned month)
Freelancer

The total monthly gross income is calculated from the salary, overtime, etc., and the BPJS components, if any.

Total Monthly Gross Income = Sum of taxable gross income + BPJS paid by Employer* - BPJS paid by Employee**

*) BPJS paid by Employer includes: BPJS Kesehatan, JKK, JKM

**) BPJS paid by Employee includes: Iuran Pensiun (IP), Jaminan Pensiun (JP), JHT/THT

TER Rates for Category A

Category A applies to individual taxpayers with the following statuses:

Unmarried with no dependents (TK/0)
Unmarried with one dependent (TK/1)
Married with no dependents (K/0)

Below is a detailed breakdown of the TER rates for Category A taxpayers:

Monthly Gross Income (IDR)	Tax Rate (%)
Up to Rp5,400,000	0%
Above Rp5,400,000 – Rp5,650,000	0.25%
Above Rp5,650,000 – Rp5,950,000	0.5%
Above Rp5,950,000 – Rp6,300,000	0.75%
Above Rp6,300,000 – Rp6,750,000	1%
Above Rp6,750,000 – Rp7,500,000	1.25%
Above Rp7,500,000 – Rp8,550,000	1.5%
Above Rp8,550,000 – Rp9,650,000	1.75%
Above Rp9,650,000 – Rp10,050,000	2%
Above Rp10,050,000 – Rp10,350,000	2.25%
Above Rp10,350,000 – Rp10,700,000	2.5%
Above Rp10,700,000 – Rp11,050,000	3%
Above Rp11,050,000 – Rp11,600,000	3.5%
Above Rp11,600,000 – Rp12,500,000	4%
Above Rp12,500,000 – Rp13,750,000	5%
Above Rp13,750,000 – Rp15,100,000	6%
Above Rp15,100,000 – Rp16,950,000	7%
Above Rp16,950,000 – Rp19,750,000	8%
Above Rp19,750,000 – Rp24,150,000	9%
Above Rp24,150,000 – Rp26,450,000	10%
Above Rp26,450,000 – Rp28,000,000	11%
Above Rp28,000,000 – Rp30,050,000	12%
Above Rp30,050,000 – Rp32,400,000	13%
Above Rp32,400,000 – Rp35,400,000	14%
Above Rp35,400,000 – Rp39,100,000	15%
Above Rp39,100,000 – Rp43,850,000	16%
Above Rp43,850,000 – Rp47,800,000	17%
Above Rp47,800,000 – Rp51,400,000	18%
Above Rp51,400,000 – Rp56,300,000	19%
Above Rp56,300,000 – Rp62,200,000	20%
Above Rp62,200,000 – Rp68,600,000	21%
Above Rp68,600,000 – Rp77,500,000	22%
Above Rp77,500,000 – Rp89,000,000	23%
Above Rp89,000,000 – Rp103,000,000	24%
Above Rp103,000,000 – Rp125,000,000	25%
Above Rp125,000,000 – Rp157,000,000	26%
Above Rp157,000,000 – Rp206,000,000	27%
Above Rp206,000,000 – Rp337,000,000	28%
Above Rp337,000,000 – Rp454,000,000	29%
Above Rp454,000,000 – Rp550,000,000	30%
Above Rp550,000,000 – Rp695,000,000	31%
Above Rp695,000,000 – Rp910,000,000	32%
Above Rp910,000,000 – Rp1,400,000,000	33%
Above Rp1,400,000,000	34%

TER Rates for Category B

Category B applies to individual taxpayers with the following statuses:

Unmarried with two dependents (TK/2)
Unmarried with three dependents (TK/3)
Married with one dependent (K/1)
Married with two dependents (K/2)

Below is a detailed breakdown of the TER rates for Category B taxpayers:

Monthly Gross Income (IDR)	Tax Rate (%)
Up to Rp6,200,000	0%
Above Rp6,200,000 – Rp6,500,000	0.25%
Above Rp6,500,000 – Rp6,850,000	0.5%
Above Rp6,850,000 – Rp7,300,000	0.75%
Above Rp7,300,000 – Rp9,200,000	1%
Above Rp9,200,000 – Rp10,750,000	1.5%
Above Rp10,750,000 – Rp11,250,000	2%
Above Rp11,250,000 – Rp11,600,000	2.5%
Above Rp11,600,000 – Rp12,600,000	3%
Above Rp12,600,000 – Rp13,600,000	4%
Above Rp13,600,000 – Rp14,950,000	5%
Above Rp14,950,000 – Rp16,400,000	6%
Above Rp16,400,000 – Rp18,450,000	7%
Above Rp18,450,000 – Rp21,850,000	8%
Above Rp21,850,000 – Rp26,000,000	9%
Above Rp26,000,000 – Rp27,700,000	10%
Above Rp27,700,000 – Rp29,350,000	11%
Above Rp29,350,000 – Rp31,450,000	12%
Above Rp31,450,000 – Rp33,950,000	13%
Above Rp33,950,000 – Rp37,100,000	14%
Above Rp37,100,000 – Rp41,100,000	15%
Above Rp41,100,000 – Rp45,800,000	16%
Above Rp45,800,000 – Rp49,500,000	17%
Above Rp49,500,000 – Rp53,800,000	18%
Above Rp53,800,000 – Rp58,500,000	19%
Above Rp58,500,000 – Rp64,000,000	20%
Above Rp64,000,000 – Rp71,000,000	21%
Above Rp71,000,000 – Rp80,000,000	22%
Above Rp80,000,000 – Rp93,000,000	23%
Above Rp93,000,000 – Rp109,000,000	24%
Above Rp109,000,000 – Rp129,000,000	25%
Above Rp129,000,000 – Rp163,000,000	26%
Above Rp163,000,000 – Rp211,000,000	27%
Above Rp211,000,000 – Rp374,000,000	28%
Above Rp374,000,000 – Rp459,000,000	29%
Above Rp459,000,000 – Rp555,000,000	30%
Above Rp555,000,000 – Rp704,000,000	31%
Above Rp704,000,000 – Rp957,000,000	32%
Above Rp957,000,000 – Rp1,405,000,000	33%
Above Rp1,405,000,000	34%

TER Rates for Category C

Category C applies to individual taxpayers with the following statuses:

Married with three dependents (K/3)

Below is a detailed breakdown of the TER rates for Category C taxpayers:

Monthly Gross Income (IDR)	Tax Rate (%)
Up to Rp6,600,000	0%
Above Rp6,600,000 – Rp6,950,000	0.25%
Above Rp6,950,000 – Rp7,350,000	0.5%
Above Rp7,350,000 – Rp7,800,000	0.75%
Above Rp7,800,000 – Rp8,850,000	1%
Above Rp8,850,000 – Rp9,800,000	1.25%
Above Rp9,800,000 – Rp10,950,000	1.5%
Above Rp10,950,000 – Rp11,200,000	1.75%
Above Rp11,200,000 – Rp12,050,000	2%
Above Rp12,050,000 – Rp12,950,000	3%
Above Rp12,950,000 – Rp14,150,000	4%
Above Rp14,150,000 – Rp15,550,000	5%
Above Rp15,550,000 – Rp17,050,000	6%
Above Rp17,050,000 – Rp19,500,000	7%
Above Rp19,500,000 – Rp22,700,000	8%
Above Rp22,700,000 – Rp26,600,000	9%
Above Rp26,600,000 – Rp28,100,000	10%
Above Rp28,100,000 – Rp30,100,000	11%
Above Rp30,100,000 – Rp32,600,000	12%
Above Rp32,600,000 – Rp35,400,000	13%
Above Rp35,400,000 – Rp38,900,000	14%
Above Rp38,900,000 – Rp43,000,000	15%
Above Rp43,000,000 – Rp47,400,000	16%
Above Rp47,400,000 – Rp51,200,000	17%
Above Rp51,200,000 – Rp55,800,000	18%
Above Rp55,800,000 – Rp60,400,000	19%
Above Rp60,400,000 – Rp66,700,000	20%
Above Rp66,700,000 – Rp74,500,000	21%
Above Rp74,500,000 – Rp83,200,000	22%
Above Rp83,200,000 – Rp95,600,000	23%
Above Rp95,600,000 – Rp110,000,000	24%
Above Rp110,000,000 – Rp134,000,000	25%
Above Rp134,000,000 – Rp169,000,000	26%
Above Rp169,000,000 – Rp221,000,000	27%
Above Rp221,000,000 – Rp390,000,000	28%
Above Rp390,000,000 – Rp463,000,000	29%
Above Rp463,000,000 – Rp561,000,000	30%
Above Rp561,000,000 – Rp709,000,000	31%
Above Rp709,000,000 – Rp965,000,000	32%
Above Rp965,000,000 – Rp1,419,000,000	33%
Above Rp1,419,000,000	34%

Annual Taxable Income (PKP setahun)

The Annual Taxable Income (Penghasilan Kena Pajak Setahun or PKP) is the total income subject to tax after deducting allowable expenses, non-taxable income, and tax allowances. PKP is used to calculate the annual income tax liability, especially for the final tax period. The Annual Taxable Income calculation is applicable to:

Permanent and Contract Employee in December of the tax year.
Permanent and Contract Employee in the resigned month.

Steps to Calculate PKP Setahun

1) Determine Annual Gross Income:

Sum up the employee's monthly gross income (Ph. Bruto) for the entire year.

Annualized gross = Beginning Netto* + Sum of taxable gross income**

*) Beginning Netto is the PKP (taxable income) of the previous employment period.The initial net income of an employee at the start of a payroll period, before any additional earnings (e.g., overtime, bonuses) or deductions (e.g., unpaid leave, lateness penalties) are applied.
**) Sum of taxable gross income is The total taxable income of an employee, including all earnings subject to tax, such as: Basic Salary, Overtime, Additional Allowances, Unpaid Leave Deduction, Lateness Deduction, etc.

2) Deduct Non-Taxable Income (PTKP):

Subtract the Non-Taxable Income (Penghasilan Tidak Kena Pajak or PTKP) based on the taxpayer's category.

PTKP Status	PTKP Values
TK/0	Rp 54,000,000
TK/1	Rp 58,500,000
TK/2	Rp 63,000,000
TK/3	Rp 67,500,000
K/0	Rp 58,500,000
K/1	Rp 63,000,000
K/2	Rp 67,500,000
K/3	Rp 72,000,000
K/I/0	Rp 112,500,000
K/I/1	Rp 117,000,000
K/I/2	Rp 121,500,000
K/I/3	Rp 126,000,000

3) Deduct Position Allowance (Biaya Jabatan) when applicable:

For Permanent / Contract Employees, an additional position allowance deduction is allowed from the gross income to determine the taxable income.

It is calculated as 5% of the gross income.
With a limit of Rp6,000,000 per year or Rp500,000 per month.

4) Calculate Taxable Income (PKP):

PKP = Annualized Gross – PTKP – Position Allowance + BPJS paid by Employer* - BPJS paid by Employee**

*) BPJS paid by Employer includes: BPJS Kesehatan, JKK, JKM

**) BPJS paid by Employee includes: Iuran Pensiun (IP), Jaminan Pensiun (JP), JHT/THT

5) Apply Progressive Tax Rates:

Use the progressive tax rates under Article 17 of the Income Tax Law to calculate the annual tax liability.

Annual Taxable Income (PKP) (IDR)	Tax Rate (%)
Up to Rp60,000,000	5%
Above Rp60,000,000 – Rp250,000,000	15%
Above Rp250,000,000 – Rp500,000,000	25%
Above Rp500,000,000 – Rp5,000,000,000	30%
Above Rp5,000,000,000	35%

Example: PKP = 75,000,000
- 1st layer: 60,000,000 x 5%
- 2nd layer: (75,000,000 - 60,000,000) x 15%

6) Calculate Tax Liability of the month

Remaining PPh = Annualised PPh - PPh paid for the whole year - PPh21 paid

Tax without NPWP (Nomor Pokok Wajib Pajak)

If you don't specify NPWP in the employee details. The individuals are subject to a 20% higher tax rate than the standard rates.

Gross-up Tax Calculation

The gross-up concept is used in PPh21 calculations when an employer agrees to cover the employee's income tax liability. In such cases, the employer pays the tax on behalf of the employee, and the employee's income is "grossed up" to reflect the total amount before tax. The grossed-up amount ensures that the employee receives the net income they are entitled to after taxes.

TER with Gross-up

Formula of gross-up calculation:

PPh21 Allowance / Deduction = (Gross Income x Tax Rate) / (100 - Tax Rate)

Example:

An employee under Category A (TER A) and his gross income in January 2024 is Rp10,000,000. Referring to the TER A table, the corresponding tax rate is 2%.

PPh21 Allowance / Deduction = (10,000,000 x 2) / (100 - 2)
= 10,000,000 x 2/98
= 204,082
To verify the calculation.
The grossed-up income become Rp10,000,000 + Rp204,082 = Rp10,204,082
PPh21 Deduction = Rp10,204,082 x 2% = Rp204,082
Income after tax deduction = Rp10,204,082 - Rp204,082 = Rp10,000,000

Annualized with Gross-up

For the progressive tax rates, use the following rates and calculation mechanism to calculate the annual tax liability:

Annual Taxable Income (PKP) (IDR)	Tax Rate (%)	Calculation Mechanism
Up to Rp57,000,000	5%	PKP x 5/95
Above Rp57,000,000 – Rp218,500,000	15%	(PKP - 57,000,000) x 15/85
Above Rp218,500,000 – Rp406,000,000	25%	(PKP - 218,500,000) x 25/75
Above Rp406,000,000 – Rp3,556,000,000	30%	(PKP - 406,000,000) x 30/70
Above Rp3,556,000,000	35%	(PKP - 3,556,000,000) x 35/65

Example:

An employee has a monthly gross of Rp30,000,000. PTKP status is TK/0 and using gross-up.

Annualized gross = 30,000,000 x 12 = Rp360,000,000
PTKP for TK/0 = Rp54,000,000.
Position Allowance = 5% x 360,000,000 (up to 6,000,000) = Rp6,000,000
PKP = 360,000,000 - 54,000,000 - 6,000,000 = Rp300,000,000

Based on the PKP, the tax falls to the 3rd layer of the progressive tax rates (5%, then 15%, then 25%). Hence, the progressive tax calculation:

PPh21 Allowance / Deduction (1st layer)
= 57,000,000 x 5/95 = 3,000,000
PPh21 Allowance / Deduction (2nd layer)
= (218,500,000 - 57,000,000) x 15/85 = 28,500,000
PPh21 Allowance / Deduction (3rd layer)
= (360,000,000 - 218,500,000) x 25/75 = 21,166,667
The total PPh21 Allowance / Deduction = 3,000,000 + 28,500,000 + 21,166,667 = 58,666,667

To verify the calculation.
The annual grossed-up income, with the PPh allowance, become
Rp360,000,000 + Rp58,666,667 = Rp418,666,667
PTKP for TK/0 = Rp54,000,000.
Position Allowance = 5% x 360,000,000 (up to 6,000,000) = Rp6,000,000
PKP = 418,666,667 - 54,000,000 - 6,000,000 = Rp358,666,668
PPh21 Deduction (1st layer) = 60,000,000 x 5% = 3,000,000
PPh21 Deduction (2nd layer) = (250,000,000 - 60,000,000) x 15% = 28,500,000
PPh21 Deduction (3rd layer) = (358,666,667 - 250,000,000) x 25% = 27,166,667
The total PPh21 Deduction = 3,000,000 + 28,500,000 + 27,166,667 = 58,666,667
Annual income after tax deduction = Rp418,666,667 - Rp58,666,667 = Rp360,000,000

It is tallied that the annual income received is the same as the annual gross because the employer gives the PPh allowance to compensate for the PPh deduction.

Example Tax Calculation

Scenario 1 - Calculating contract employees in regular month (Jan - Nov)
In June, a permanent employee has monthly gross income of Rp8,000,000
The employee is married with two dependents (K/2), so it falls on TER category C with 1% rate.
Tax liability in a month = 1% x 8,000,000 = Rp80,000
Scenario 2 - Calculating permanent employees in December
In December, a permanent employee has a monthly salary of Rp30,000,000. The employee is married with one dependent (K/1) with gross method.
There are BPJS components (BPJS Kesehatan, JHT, JP, JKM & JKK) in payroll:
1) BPJS Kesehatan (with max. income is 12,000,000):
- 4% by Employer = 4% x 12,000,000 = Rp480,000
- 1% by Employee = 1% x 12,000,000 = Rp120,000
2) BPJS JHT:
- 3.7% by Employer = 3.7% x 30,000,000 = Rp1,110,000
- 2% by Employee = 2% x 30,000,000 = Rp600,000
3) BPJS JP (with max. income is 10,042,300):
- 2% by Employer = 2% x 10,042,300 = Rp200,846
- 1% by Employee = 1% x 10,042,300 = Rp100,423
4) BPJS JKM:
- 0.3% by Employer = 0.3% x 30,000,000 = Rp90,000
5) BPJS JKK (0.24% for lowest risk):
- 0.24% by Employer = 0.24% x 30,000,000 = Rp72,000

Based on the table above, the BPJS paid by employers that are taxable are BPJS Kesehatan, JKK, and JKM. While BPJS paid by employees that should deduct the taxable income are JP & JHT.

Hence, the monthly gross income is
= Monthly salary + BPJS Kesehatan (Employer) + JKK + JKM - JP (Employee) - JHT (Employee)
= 30,000,000 + 480,000 + 72,000 + 90,000 - 100,423 - 600,000
= Rp29,941,577

Annual gross income = 29,941,577 x 12 = Rp359,298,924
PTKP for K1 is Rp63,000,000.
Position allowance is 5% x Rp. 360,000,000 > Rp6,000,000. Hence, limited to 6,000,000.

Step 1: Calculate PKP
PKP = Annual Gross Income – PTKP – Position Allowance
PKP = 359,298,924 – 63,000,000 – 6,000,000 = Rp290,298,924

Step 2: Apply Progressive Tax Rates
The PKP falls in the to the 3rd layer (up to Rp500,000,000), so the progressive tax is:
- 1st layer (up to 60mio) = 60,000,000 × 5% = Rp3,000,000
- 2nd layer (60mio - 250mio) = (250,000,000 - 60,000,000) × 15% = Rp28,500,000
- 2nd layer (250mio - 500mio) = (290,298,924 - 250,000,000) × 25% = Rp10,074,731
- Total annual tax = 3,000,000 + 28,500,000 + 10,074,731 = 41,574,731
Using the TER rate, from January to November, on a monthly basis, the employee has paid:
- Monthly gross = Rp29,941,577. Based on TER (K/1) falls in the 12% rate.
- Monthly Tax (Jan - Nov) = 12% x Rp29,941,577 = Rp3,592,989
- Total Tax paid from Jan - Nov = 3,592,989 x 11 = Rp39,522,879
Tax liability in December = 41,574,731 - 39,522,879 = Rp2,051,852
Scenario 3 - Calculating tax without NPWP
Follow-up from scenario 2: say that the employee doesn't have NPWP. Hence, he/she is taxed 20% more than the standard rate.
The total annual tax become = 120% x 41,574,731 = Rp49,889,677
Scenario 4 - Permanent employee that joins and resigns in mid-year with gross-up
A permanent employee joins in August and works for only 3 months until October due to not passing the probation.
- The monthly salary is Rp10,000,000.
- He is married with no dependent (K/0)
- and using gross-up for the tax calculation method.
- The taxable income (beginning netto) from the previous employment was Rp78,000,000. While the PPh21 paid was Rp975,000
- There are BPJS components (BPJS Kesehatan, JHT, JP, JKM & JKK) in payroll:
  1) BPJS Kesehatan (with max. income is 12,000,000):
  - 4% by Employer = 4% x 10,000,000 = Rp400,000
  - 1% by Employee = 1% x 10,000,000 = Rp100,000
  2) BPJS JHT:
  - 3.7% by Employer = 3.7% x 10,000,000 = Rp370,000
  - 2% by Employee = 2% x 10,000,000 = Rp200,000
  3) BPJS JP (with max. income is 10,042,300):
  - 2% by Employer = 2% x 10,000,000 = Rp200,000
  - 1% by Employee = 1% x 10,000,000 = Rp100,000
  4) BPJS JKM:
  - 0.3% by Employer = 0.3% x 10,000,000 = Rp30,000
  5) BPJS JKK (0.24% for lowest risk):
  - 0.24% by Employer = 0.24% x 10,000,000 = Rp24,000
Hence, the monthly gross income is
= Monthly salary + BPJS Kesehatan (Employer) + JKK + JKM - JP (Employee) - JHT (Employee)
= 10,000,000 + 400,000 + 24,000 + 30,000 - 100,000 - 200,000
= Rp10,154,000

For August & September, using the TER rate & gross-up method:
- Monthly gross = Rp10,154,000. Based on TER (K/0) falls in the 2.25% rate.
- Tax Allowance / Deduction in a month (Aug - Sep)
  = Rp10,154,000 x 2.25/(100-2.25) = Rp233,724
In the final month (October), using Annualized calculation:
- Total gross (Aug-Oct) = 10,154,000 x 3 = Rp30,462,000
- PTKP for K/0 = Rp58,500,000.
- Position Allowance (monthly) = 5% x 10,154,000 > 500,000. Limited to Rp500,000 per month
- Beginning Netto (from the previous employment) = Rp78,000,000
- PPh21 paid (from the previous employment) = Rp975,000
Annualized gross = Beginning Netto + Sum of taxable gross income
Annualized gross = 78,000,000 + 30,462,000 = Rp108,462,000

PKP = Annualized Gross – PTKP – Position Allowance
PKP = 108,462,000 - 58,500,000 - (500,000 x 3 months) = 48,462,000

Based on the PKP, the tax falls to the 1st layer of the progressive tax (5%). Hence, the calculation:
Final PPh21 Allowance / Deduction = 48,462,000 x 5/95 = 2,550,632

Tax liability in the final month (Oct) = Final tax - PPh paid (Aug-Sep) - PPh21 paid (from the previous employment)
Tax liability in the final month (Oct) = 2,550,632 - (233,724 x 2) - 975,000
= 1,108,184

How do we calculate PPh21 for multiple payruns in a month

PPh21 (Income Tax Article 21) is ultimately calculated and paid on a monthly basis. However, within a single month, there might be multiple payroll runs for an employee. In such cases, PPh21 calculations for each payroll run are estimated using the following formula:

PPh21 for Payrun [N] =
PPh21 for all Payruns till [N] − PPh21 for previous Payruns till [N-1]

Where payruns occur in chronological sequence.

Example scenario:

Bob is a contract employee with Monthly Salary: Rp15,000,000. Bob is subject to PPh21 under the Category A (TK/0) tax rate.
Payruns:

Payrun 1: Rp6,000,000 (earlier in the month)
Payrun 2: Rp9,000,000 (later in the month)

1. PPh21 for Payrun 1 (Rp6,000,000)

PPh21 for Payrun 1:
PPh21 = Rp6,000,000 × 0.75%= Rp45,000

2. Run Payrun 2 (Rp9,000,000)

Gross for Payrun 1 + Payrun 2 = 6,000,000 + 9,000,000 = 15,000,000
PPh21 for Payrun 1 + Payrun 2 = 15,000,000 x 6% = Rp900,000
PPh21 for Payrun 2 = (PPh21 for Payrun 1 + 2) − (PPh21 for Payrun 1)
= 900,000 - 45,000 = Rp855,000

Summary of PPh21 Contributions

Payrun	Income (IDR)	PPh21 (IDR)
Payrun 1	Rp6,000,000	Rp45,000
Payrun 2	Rp9,000,000	Rp855,000
Total	Rp15,000,000	Rp900,000

PPh21 Calculation