PPh 21 TER explained

TER (Tarif Efektif Rata-rata, "Effective Average Tariff") is the new monthly PPh 21 scheme effective from January 2024, governed by PP 58/2023. TER replaces the old formula that required annual income projection.

The purpose: simplify the calculation and stabilise monthly withholding.

How TER works

For January to November, PPh 21 = monthly gross × TER rate.

The TER rate is picked based on two inputs:

1. PTKP category (A, B, or C)
2. Monthly gross income band

For December, the system must switch to the annual progressive calculation (UU HPP) and reconcile the final PPh 21.

The three TER categories

Example — category A

Single employee (TK/0), monthly gross Rp 10,000,000.

In December the system computes the full annual PPh on a progressive basis and compares it against what was already withheld in Jan–Nov. The difference becomes the December PPh 21.

How esaFiskaly applies TER

1. 1

   Set up employees with PTKP status

2. 2

   The Employee module maps status (TK/0, K/1, etc.) to TER category A/B/C automatically.

3. 3

   Monthly payroll Jan–Nov

4. 4

   The TER engine picks the rate from the PP 58/2023 official table based on that month's gross.

5. 5

   December payroll = settlement

6. 6

   The system automatically switches to the UU HPP annual progressive formula. If Jan–Nov over-withheld → employee gets a refund. If under-withheld → December's deduction is larger.

7. 7

   Annual Bukti Potong PPh 21

8. 8

   The final A1 Bukti Potong is issued in December / early January. Employees use it for their personal annual SPT (1770/1770S/1770SS).

When TER is not used

• Employees who terminate during the year → immediate progressive settlement that month.
• New hires → TER applies from their first month; settlement still occurs in December or the termination month.
• Bonuses / THR / commissions (irregular income) → still computed combined with monthly gross and TER-rated.

Frequently asked

Next

• What is PPh 21?
• Payroll → PPh 21 flow