Country Payroll Guide Indonesia

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Key Facts

Capital
Jakarta
Date format
dd.mm.yyyy
Currency
Indonesian Rupiah (IDR)
VAT
the standard rate is 10%

Contributions

Employers

Health Insurance
Health Insurance - 5%
Pension
Pension - 2%
Work Accident
Work Accident - 0.24% to 1.74%
Old Age
Old Age - 3.7%
Death
Death - 0.3%
Total Employment Cost
Total Employment Cost - 11.74%

Employees

Pension
Pension - 1%
Old Age
Old Age - 2%
Health Insurance
Health Insurance - 1%
Total Employee Cost
Total Employee Cost - 4%

Minimum Wage

Minimum Wage
The minimum wage in Indonesia is 4276349.906 IDR per month.

Payroll

Payroll Cycle
Bi-Weekly
13th Salary

THR is a one-time salary for those who have continuously worked at the same company for 12 months. If it is less than 12 months, the THR payment is proportional to how long the employee has worked in the company. THR includes base salary and fixed monthly allowance but does not have to cover other payments such as bonuses.

Income Tax

Employee Income Tax (1)
Up to 5M - 5%
Employee Income Tax (2)
Up to 250M - 15%
Employee Income Tax (3)
Up to 500M - 25%
Employee Income Tax (4)
Over 500M - 30%

Working Hours

General Working Hours

40 hours per week.

Overtime

One and one-half times the employee’s regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday.

Leave

Paid Time Off

12 days per year plus public holidays.

Public Holidays

16 public holidays.

Sick Days

Up to 14 days per year.

Maternity Leave

3 months.

Paternity Leave

2 days leave.

Parental Leave

Employees can be granted 2 days of parental leave for the following reasons: circumcision, baptism, marriage and the death of an employees child.

Other Leave
  • Annual
  • Paternal
  • Personal care and compassionate leave
  • Community service
  • Long service

Termination

Termination Process

Under the Indonesian labour law, termination of employment in Indonesia can be initiated by the employer through dismissal or by the employee through resignation.

Notice Period

30 days.

Severance Pay

One to two weeks for every year worked.

Probation Period

3 months.

Visa

Employment Visa

Yes. An Indonesian Work Visa must be acquired.