The enthusiasm of civil servants, members of the military and police, as well as retirees in welcoming the 2026 holiday allowance (THR) is reaching its peak, with the first disbursement projected for February 26, 2026.

However, the official confirmation still depends on the issuance of a Government Regulation (PP), which awaits the return of President Prabowo Subianto from his state visits to the United States, the United Kingdom, and Jordan later this week.

Amid this anticipation, one crucial aspect must not be overlooked: how to manage the 2026 THR so that it does not run out quickly.

Why Do Many People Struggle to Manage Their THR?

Psychologically, THR is often perceived as “unexpected money” or an extra bonus. As a result, people tend to spend it more impulsively compared to their regular monthly salary.

In addition, social pressure to appear generous during homecoming trips or when distributing holiday gifts often makes individuals overlook their financial obligations after Eid.

To ensure your THR does not merely “pass through,” here is a practical allocation strategy for this year.

2026 THR Allocation Strategy: The 4-3-2-1 Formula

To adapt to inflation and lifestyle patterns in 2026, consider the following breakdown:

1. 40% for holiday expenses (consumption)
This includes travel tickets for homecoming, zakat fitrah, family hampers, and hosting expenses. Remember, Eid is about strengthening relationships, not showcasing luxury that strains your finances.

2. 30% to settle obligations (debts & PayLater)
In today’s era of digital debt, financial prudence is essential. Use your THR to repay or reduce outstanding PayLater and credit card bills accumulated over previous months. This helps you start the post-Eid period with greater financial relief.

3. 20% for savings and investment
Avoid spending everything. Allocate at least 20% to liquid yet profitable instruments, such as:

• Money Market Mutual Funds for short-term emergency funds.

• Digital gold as a hedge against inflation.

• Government bonds (Sukuk Savings) if the offering period coincides with your THR disbursement.

4. 10% for social funds and self-reward
After working hard throughout the year, it is reasonable to set aside a small portion for personal enjoyment or additional charitable giving beyond mandatory zakat.

THR Management Simulation

For example, if a worker receives Rp5 million in THR, around Rp2 million can be allocated for Eid expenses. Rp1.5 million can be used to repay debts or installments. Another Rp1 million can be saved or invested, while Rp500,000 can be allocated for social purposes. With this distribution, holiday needs are met without compromising post-Eid financial stability.

How to Prevent Your THR from Being Wasted

Beyond percentage allocation, apply these three preventive steps:

A. Apply the “24-Hour Rule”
If tempted by marketplace discounts right after receiving your THR, wait 24 hours before making a purchase. Often, impulsive urges subside within a day, allowing rational thinking to return.

B. Separate Your THR Account
Do not mix THR funds with your primary salary account. Use a separate bank account or digital wallet without administrative fees to store allocated funds and prevent accidental spending.

C. Prioritize Zakat and Debt Payments
As soon as the funds arrive, immediately pay your zakat and debt installments. Delaying these obligations often creates the illusion of having ample balance, causing the remaining money to disappear quickly.