Government Stresses PPh 21 DTP Must Be Paid Cash to Employees

Economy Minister Airlangga Hartarto announced that PPh 21 DTP must be paid in cash to employees. The statement was made in late October 2025 during a fiscal policy coordination meeting.

The cash payment forms part of the year‑end stimulus aimed at increasing net wages by roughly Rp400,000‑600,000 per month. By bearing the tax, the government expects household purchasing power to rise.

For taxpayers, the measure translates into higher disposable income, while businesses need to allocate cash for the withholding tax. The policy reflects the government's effort to boost consumption ahead of trade‑tariff negotiations.