Jakarta, CNBC Indonesia – A number of employees in Indonesia experience bad things on what should be a happy time, namely payday. Because the salary that should be received is lower compared to before.

This occurred due to changes in calculations by the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu). However, this was denied by the DJP.

According to the DJP, the new calculation of Income Tax (PPh) Article 21 is considered not to be a burden on employees. The DJP said that the implementation of tax calculations using the average effective rate (TER) was only to simplify the calculations.

“By implementing this tariff, it will not result in additional new tax burdens,” said Director of Extension, Services and Public Relations of DJP, Dwi Astuti, in a written statement, quoted on Sunday (28/1/2024).

Previously, the method for calculating PPh 21 underwent changes following the publication of Government Regulation (PP) number 58 of 2023 and Minister of Finance Regulation (PMK) Number 168 of 2023. These regulations officially came into effect in January 2024.

Through this provision, the government determines the calculation of PPh Article 21 using the TER method. Through this provision, the government determines the calculation of PPh Article 21 using the average effective rate or TER method.

However, this change in calculations has already made a number of employees nervous. They admitted that the implementation of this calculation made the PPh 21 deduction on the salaries they received in January larger. This larger cut results in the salary they receive being less.

However, this change in calculations over time made a number of employees nervous. They admitted that the implementation of this calculation made the PPh 21 deduction on the salaries they received in January larger. This larger cut results in the salary they receive being less.

“The application of the effective monthly rate for Permanent Employees is only used to calculate PPh Article 21 for tax periods other than the Last Tax Period, while calculating PPh Article 21 for a year in the Last Tax Period still uses the rate of Article 17 Paragraph (1) Letter a of the Income Tax Law,” said Bi.

According to Dwi, the last tax period or December will present the amount of PPh payable for one year. He said that with this method, the amount of tax paid by employees in one year will not change from previous periods.

“This means that as long as there is no change in taxable income, the total PPh payable in a year will be the same as the PPh payable before the effective rate was applied,” he said.

[Gambas:Video CNBC]

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