☑️ The Basics

Currency: Indonesian rupiah (Rate)

Public Holidays: 11 public holidays (see here)

Employer Taxes: 10- 11.74% of gross salary

Official Language: Indonesian

Payroll frequency: Weekly, bi-weekly, or monthly

13th / 14th Salary: (what's this?) ****Employees are paid a mandatory 13th month bonus, the THR, which is also known as the "religious holiday allowance".

Three things to know about employing in Indonesia

  1. Employees who have worked with an employer for at least one month are entitled to a 13th salary – the Tunjangan Hari Raya (THR) payment, an yearly payment that employees receive before their longest religious holiday. THR payment is proportional to how long the employee has worked in the company. The time of its payment depends on the employee's religion.
  2. Employees do not get vacation days until they have worked for the same employer for at least a full year.
  3. Employers are legally prohibited from unilaterally terminating employee contracts. This requires a Mutual Termination Agreement between them or a court ruling on the matter.

Employment in Indonesia

Notice Period

There is no set period of notice in Indonesian law for termination of employees.

The notice period for resignations is 30 days.

Termination & Severance

Unilateral termination by an employer is prohibited; it requires a Mutual Termination Agreement between the employer and the employee (or a court ruling). However, employees can be dismissed for reasons including:

Employees who are discharged from their job are entitled to receive a payment that depends on their length of service and the reason for the termination.

Probationary period

Three months

Minimum Wage

The minimum wage varies by region and ranges from Rp 2,213,000 to Rp 4,267,349.

IP protection and non-compete agreements

Non-compete agreements can be included in employment contracts, though there is no law on this subject.

Working Hours

For employees working a six working day week, maximum working hours are seven hours a day and 40 hours a week.