How Much THR is Appropriate for Your Family? Here's How to Calculate It!

Tunjangan Hari Raya (THR), or holiday bonus, is one of the most eagerly awaited moments leading up to Eid al-Fitr. While many people use it to meet personal needs, it’s also common for individuals to set aside part of their THR for family as a way of sharing the joy. However, before distributing your THR to your family, it’s crucial to ensure that your other financial aspects are covered first. Here are some smart ways to manage and distribute your THR.

1. Prioritize Your Family’s Essential Needs

Before you begin distributing your THR, make sure that your family's basic needs are met. Allocate funds for essential expenses such as:

Travel Expenses (Mudik): Don’t forget to prepare for the cost of traveling back to your hometown.
Zakat Fitrah: The obligatory charity before celebrating Eid al-Fitr to purify your wealth.
Eid Essentials: This includes everything from food and new clothes to home decorations.
Paying Off Debts: If you have any outstanding debts, it’s a good idea to use part of your THR to pay them off, reducing your financial burden.

By planning your financial priorities, you can enjoy the holiday season without worrying about your finances afterward.

2. Create Budget Categories for THR Distribution

To avoid overspending, create a financial plan by dividing your THR into different categories. According to Populix, you should set aside 20% to 25% of your THR for giving to those closest to you, including:

THR for Parents and In-Laws
THR for Children and Nieces/Nephews
THR for Neighbors or Domestic Helpers
Charity or Donations (Contribute a portion of your THR to those in need)

For instance, if your THR from work is IDR 7,000,000, you might set aside around IDR 1,400,000 to IDR 1,750,000 for these gifts. However, this amount can be adjusted depending on your financial situation.

3. Set Aside Funds for Emergency or Investment Purposes

While giving THR is heartwarming and rewarding, don’t forget to save a portion for emergency situations or future needs. Ideally, allocate 20-25% of your total THR for an emergency fund. You can also use this amount for investments that offer returns, such as the Deposito Online iB Hijrah from Bank Muamalat, which provides stable and secure benefits. This way, even after Eid, your money remains safe and productive.

4. Give THR Within Your Means

Sharing THR is a form of affection, but it’s important not to stretch beyond your financial capacity. Choose an amount that aligns with your situation. In Islam, giving THR is an act of love, not a burdensome obligation. One of the benefits of giving THR to children is teaching them to cherish Eid al-Fitr as a day of happiness and generosity.

Save Any Remaining THR in a Safe Investment

After distributing THR to your loved ones, be sure to set aside some for the future. One of the best ways to do this is by saving part of your THR in the Deposito Online iB Hijrah from Bank Muamalat. With competitive returns and the ease of managing your investment through Muamalat DIN, your THR can continue to grow in a way that’s both secure and in line with Sharia principles. This ensures that you’re managing your THR wisely, both for the present and for the future.