Permanent Staff Gaining Over 10 Million Still Eligible for PPh 21

Kring Pajak, the contact centre of Indonesia’s Directorate General of Taxes, said on 3 November 2025 that permanent employees remain eligible for the government‑covered PPh 21 DTP incentive even if their salary exceeds IDR 10 million mid‑year. The comment responded to public inquiries about the rule.

The eligibility is defined in Ministerial Decree (PMK) No.10/2025 and PMK No.72/2025, which require a regular gross income not to exceed IDR 10 million for the tax period of January 2025 or the first month of employment in 2025. An increase above the threshold after mid‑year does not cancel the right to the incentive, provided the employee does not receive another similar tax benefit.

Consequently, workers can keep the tax advantage despite higher pay, and businesses—especially tourism firms with the specified KLU codes in Annex A of PMK 72/2025—may claim the incentive through December 2025. This clarification supports tax compliance and cost stability.