Maintaining People's Purchasing Power,

Government Issues Employee Income Tax Incentive Regulations

The government has issued Regulation of the Minister of Finance (PMK) Number 10 of 2025 concerning Income Tax Article 21 on Certain Income Borne by the Government (DTP) in the Framework of Economic Stimulus for the 2025 Fiscal Year. The regulation was stipulated and came into effect on February 4, 2025.

The issuance of the PMK is an effort to ease the tax burden on employees, increase purchasing power, and support worker welfare. In addition, this policy also aims to maintain the stability of the national economy. This regulation is a follow-up to the increase in VAT rates by 1 percent to 12 percent on January 1, 2025.

"The issuance of this PMK is a manifestation

of the government’s commitment to continue to maintain people’s purchasing power through the stimulus packages provided," said Director of Counseling, Services, and Public Relations of the Directorate General of Taxes (DJP) Dwi Astuti.

With this incentive, permanent employees with a gross income of no more than IDR 10 million per month and non-permanent employees with income of up to IDR 500 thousand per day in the footwear, textile and apparel, furniture, and leather and leather goods industries will receive salaries without tax deductions. The policy starts from the January 2025 tax period or the first month of work in 2025. Through PMK Number 10 of 2025, it is hoped that it can increase household consumption and encourage national economic growth. (dep/al)