Example Calculation of PPh 21 for a Permanent Employee in 2024

DDTCNews in its Tax Class series presents a sample calculation of Income Tax (PPh) Article 21 for a permanent employee for the 2024 tax year. The example uses Mr. A, an employee of PT X who is married with no dependents (status K/0).

According to PMK No 168/2023, a permanent employee receives regular income, works full‑time, and holds a contract or specific position; these three traits define the tax treatment. The calculation applies a Monthly Effective Average Rate (TER) for January‑November and a final‑month adjustment for December. Income items include basic salary, allowance, holiday allowance (THR), bonus, employer‑paid accident and death insurance premiums, pension contributions (both employer and employee), and zakat paid through the employer.

Based on the illustrated figures, PT X must withhold PPh 21 of Rp4,218,200 for the final tax period in December 2024. The example demonstrates how employers and employees can apply the TER method accurately and underscores the importance of tax compliance.