How PPh 21 is calculated with TER
Since 1 January 2024 (PP 58/2023 and PMK 168/2023), withholding tax for permanent employees from January to November is simply:
Monthly PPh 21 = TER rate × monthly gross income
The TER rate is taken from the table for your PTKP category:
| 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 |
In December the tax is recalculated for the year: annual gross minus the position allowance (5%, max Rp6,000,000), pension/JHT contributions and PTKP. The result (taxable income) is taxed at the progressive Article 17 rates:
| 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% |
December PPh 21 = annual PPh 21 − total withheld January–November.
PTKP (non-taxable income)
Rp54,000,000 for the taxpayer, Rp4,500,000 extra if married, and Rp4,500,000 per dependant (max 3).
Frequently asked questions
What is TER for PPh 21?
TER (effective average rate) is a single rate per monthly gross income band used to withhold PPh 21 for permanent employees from 2024, making monthly calculation much simpler.
Why is December PPh 21 different?
Because in December the tax is recalculated for the whole year at Article 17 rates. The difference from what was withheld January–November is taken in December and can be larger, smaller or zero.
Does TER increase the annual tax?
No. Total annual tax stays the same as the old method; TER only changes how it is withheld each month.
What counts as gross income?
Base salary, allowances, overtime, bonuses/THR in the month paid, plus JKK, JKM and BPJS Health premiums paid by the employer.
Results are simulations to help planning and may differ from official calculations by agencies, employers or banks. Last updated 2026-11-02.