How to Calculate PPh 21 with TER Rates, with Examples
Since January 2024, PPh 21 withholding for permanent employees in Indonesia uses the average effective rate (TER) set by PP 58/2023 and PMK 168/2023. It is much simpler than the old method, yet many employees are puzzled by a different deduction in December. This guide walks through each step with real numbers.
1. Find your TER category from your PTKP status
There are three TER categories, based on your non-taxable income (PTKP) status:
| Category | PTKP status |
|---|---|
| TER A | TK/0, TK/1, K/0 |
| TER B | TK/2, TK/3, K/1, K/2 |
| TER C | K/3 |
TK means single, K means married, and the number is how many dependants you have (up to 3).
2. Work out monthly gross income
Gross income is base salary plus all allowances, overtime, bonuses or THR paid that month, plus the JKK and JKM premiums paid by your employer. Your own JHT (2%) and JP (1%) contributions do not reduce gross income under TER.
3. Multiply by the TER rate
Look up the rate for your category and income band, then multiply. For a single employee (TK/0) earning Rp10,000,000 gross:
- Category: TER A
- Band Rp9,650,001–Rp10,050,000 → rate 2%
- PPh 21 January–November: 2% × Rp10,000,000 = Rp200,000 a month
4. Recalculate in December
In the last tax period (usually December) the full-year tax is calculated with Article 17 rates, and the amount already withheld January–November is subtracted. Continuing the example:
| Item | Amount |
|---|---|
| Annual gross (12 × Rp10 million) | Rp120,000,000 |
| Position allowance 5% (max Rp6 million) | Rp6,000,000 |
| JHT 2% + JP 1% contributions for the year | Rp3,600,000 |
| Net income | Rp110,400,000 |
| PTKP TK/0 | Rp54,000,000 |
| Taxable income | Rp56,400,000 |
| Annual PPh 21 (5%) | Rp2,820,000 |
| Withheld Jan–Nov (11 × Rp200,000) | Rp2,200,000 |
| December PPh 21 | Rp620,000 |
That is why December often looks bigger. The annual total is the same as under the old method; TER only changes how it is spread across the year.
Article 17 rates for the annual calculation
| Annual taxable income | Rate |
|---|---|
| up to Rp60 million | 5% |
| Rp60–250 million | 15% |
| Rp250–500 million | 25% |
| Rp500 million–5 billion | 30% |
| above Rp5 billion | 35% |
Things people often miss
- Bonuses and THR count as gross income in the month they are paid, so that month's TER rate can jump.
- New joiners and leavers are recalculated in their last month of work, not in December.
- PTKP status follows your situation at the start of the year. Marrying in June only counts from next year.
Want your own figure? Enter your salary and PTKP status in the calculator below to see the monthly TER, the annual tax and the December deduction at once.
Work it out with the PPh 21 Income Tax Calculator (TER)
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