The government plans to expand the Government-Borne Article 21 Income Tax (PPh 21 DTP) incentive in 2027. While the facility is available only to workers in specific business sectors this year, next year it will cover all sectors.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy could reach about 13 million workers with gross income of no more than IDR 10 million per month.
"There are around 13 million workers who earn an income below IDR 10 million," Airlangga told reporters at the Coordinating Ministry for Economic Affairs Office on Monday (November 9, 2026).
He explained that the expansion of the incentive's target recipients is being carried out so that more workers can benefit from the policy. The government also estimates that the formal sector will be the group that utilizes this facility the most.
The expansion of this scope simultaneously increases the number of targeted workers compared to the PPh Article 21 DTP program in 2026. This year, the government set a target of 2.2 million recipient workers from five specific business sectors.
With the 2027 expansion plan, the number of workers who could potentially obtain the facility will increase to around 13 million.
Previously, the Article 21 Income Tax DTP incentive for 2026 was regulated under Minister of Finance Regulation (PMK) Number 105 of 2025 concerning Article 21 Income Tax on Certain Income Borne by the Government in the Framework of the 2026 Fiscal Year Economic Stimulus. This policy is part of the government's economic stimulus package to maintain public purchasing power.
Through this policy, the government considered the importance of preserving public consumption capacity while executing economic and social stabilization functions in 2026. Therefore, the incentive is provided to workers who meet the requirements within the pre-determined business sectors.
The PPh Article 21 DTP facility is valid for the January to December 2026 Tax Periods. The five business sectors targeted by the policy are sectors considered to have labor-intensive characteristics and play a crucial role in supporting the national economy.
Under this scheme, the income tax that should have been deducted from the employee's salary is not charged to the worker. The government bears the PPh Article 21 through the employer in accordance with applicable provisions.
This means that employees will still receive their income without any reduction from PPh Article 21 deductions on the portion of income eligible for the facility. Furthermore, allowances or cash payments provided in the context of implementing the PPh Article 21 DTP are not calculated as additional taxable income for the employees receiving the facility.
In its implementation, PMK 105/2025 differentiates the recipient requirements based on employment status, namely permanent employees and non-permanent employees.
For permanent employees, the facility can be granted provided that the worker possesses a Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP) or a National Identification Number (Nomor Induk Kependudukan/NIK) that is integrated with the Directorate General of Taxes (DGT) system. Additionally, the employee must receive a fixed, regular gross income of up to IDR 10 million per month.
The employee concerned is also not allowed to receive the PPh Article 21 DTP facility from any other incentive programs.
Meanwhile, non-permanent workers or freelancers are subject to different income limit provisions. This group is eligible to receive the incentive if they earn an average wage of up to IDR 500,000 per day or no more than IDR 10 million in a single month.
The administrative requirements regarding NPWP or NIK ownership integrated with the DGT system remain applicable to this group. Non-permanent workers must also ensure they are not receiving the PPh Article 21 DTP facility through other incentive schemes.
