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Save or spend? Employees on how to make holiday bonus count

As Idul Fitri approaches, tens of millions of employees look forward to their annual holiday bonus (THR). To some, it’s a well-deserved reward to be used for instant gratification, but financial planners suggest keeping at least some for a rainy day. 

Ni Made Tasyarani (The Jakarta Post)
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Jakarta
Fri, March 21, 2025 Published on Mar. 17, 2025 Published on 2025-03-17T19:22:55+07:00

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Save or spend? Employees on how to make holiday bonus count Window shopping: A visitor takes a look at shoes on display at the Grand Indonesia mall on Aug. 29, 2024, in Jakarta. (Antara/Aprillio Akbar)

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s Idul Fitri approaches, employees nationwide look forward to their annual holiday bonus (THR). To some, it’s a well-deserved reward to be used for instant gratification, but financial planners recommend keeping at least some for a rainy day.

State-owned enterprise employee Ayu is undecided on whether to spare some of her THR for saving or investing, as her immediate priority is to travel home for the holidays, like millions of others joining the seasonal mudik (exodus) that marks the end of Ramadan.

Would she save or invest her THR? “Maybe not, because I’ve spared [some amount for savings] from my monthly income,” she told The Jakarta Post on March 15, adding that she had plans for traveling from Kalimantan to Bali once she received the THR.

Dean, who only started his job at a private company in Jakarta about five months ago, said he had planned to use the bonus for secondary needs.

“I have yet to receive a full bonus, so I’m allocating my [reduced] THR for spending on secondary needs,” he told the Post on Saturday.

Employees are eligible for THR equivalent to one month’s salary once they have worked in a company for a full year. 

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Dean is considering investing half of the bonus in mutual funds or gold, once he gets the full THR.

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