The Republic of Indonesia

Currency
Indonesian rupiah (IDR)
Payroll Frequency
Monthly
Employer Taxes
10.24% - 11.74%

About 

Indonesia

Jakarta is Indonesia's capital city. Located off mainland Southeast Asia, it lies across the equator.

Overview

Population
270,203,917
Language
Indonesian
Capital
Jakarta
Currency
Indonesian rupiah (IDR)
Country code
+62
Min wage
Varies depending on region
Working hours
9 AM - 5 PM
Weekdays
Monday to Friday
Work hours per week
8 hours

Payroll

Cycle
  • Wages can be paid bi-weekly or monthly, but they should be received by the end the month.
Avg employer tax

10.24% - 11.74%

Taxation

Tax breakdown - Employer

Employer Payroll Contribution

  • Work Accident: 0.24% - 1.74%
  • Old Age: 3.70%
  • Death: 0.30%
  • Pension: 2%
  • Health Insurance: 4%
VAT
  • 10% standard rate.

Holidays / PTO

Public holidays
  • 01 January: New Year's  Day    
  • 12 February: Chinese  Lunar New Year's Day    
  • 11 March: Maha  Shivaratri    
  • 11 March:  Ascension of  the Prophet Muhammad    
  • 12 March: Joint  Holiday (Cuti Bersama)    
  • 14 March: Bali's Day of  Silence and Hindu New Year (Nyepi)  
  • 20 March: March Equinox    
  • 29 March: Holi    
  • 02 April: Good Friday    
  • 04 April: Easter  Sunday    
  • 01 May: International  Labor Day    
  • 12 May: Idul  Fitri Joint Holiday    
  • 13-May: Idul Fitri    
  • 13 May: Ascension  Day of Jesus Christ    
  • 14-May: Idul Fitri  Holiday    
  • 17 May: Idul  Fitri Joint Holiday    
  • 18 May: Idul  Fitri Joint Holiday    
  • 19 May:  Idul  Fitri Joint Holiday    
  • 26 May: Waisak Day (Buddha's Anniversary)    
  • 01 June: Pancasila  Day    
  • 21 June: June Solstice    
  • 20 July:  Idul Adha    
  • 10 August: Muharram  / Islamic New Year    
  • 11 August: Muharram  / Islamic New Year    
  • 17 August: Indonesian  Independence Day    
  • 22 August: Raksha  Bandhan    
  • 30 August: Janmashtami    
  • 10 September: Ganesh  Chaturthi    
  • 23 September: September  Equinox  
  • 07 October:  Navaratri    
  • 15 October: Dussehra    
  • 20 October: Maulid  Nabi Muhammad (The Prophet Muhammad's Birthday)    
  • 04 November: Diwali /  Deepavali    
  • 21 December: December Solstice    
  • 24 December: Christmas Eve    
  • 25 December: Christmas  Day    
  • 27 December: Boxing  Day    
  • 31 December: New Year's  Eve
Sick days
  • Employees who are injured or sick are eligible for paid sick leave provided that they can show proof of their illness.
  • Long-term sick leave can be granted to employees for up to one year.
  • This should be recommended by a doctor in writing.
  • Employees on extended sick leave are paid as follows: 100% for the first four months, 75% for the second four months, 50% for the third four months, 25% of wages until termination.
Maternity leave
  • Pregnant employees can take three months of paid maternity leave.
  • 1.5 months of this leave are taken during the prenatal period.
  • The other 1.5 months are taken following childbirth.
  • Employees receive their full salary during maternity leave.
  • If a doctor recommends it, miscarriage victims are entitled to a 1.5 month rest period.
Paternity leave
  • The father of a newborn child is entitled to two days' leave in case of miscarriage or birth.

Termination

Termination Process
  • Before an employee can be terminated, the employer must make a genuine effort to avoid the termination by negotiating with the employee and/or the employee’s labor union to find an accommodation such as a change in working hours, improved working methods, or coaching.
  • If termination cannot be avoided, the employer must explain the reasons for termination clearly in writing to the employee and/or the employee’s labor union.
  • If the employee believes the termination is unjust, the decision can be challenged in the Labor Court, which will give the final ruling.
  • The reasons for which employees can be discharged from work are as follows: The employee violates the employment agreement; the employee is imprisoned; the employee is ill for more than 12 months; the employee is absent from work for more than five days without a valid reason, provided he or she has been notified twice; the employee has reached retirement age. Not all reasons for employees’ dismissal should be related to their misbehavior.
  • The employer can discharge employees for several business-related reasons as follows: A change of the company’s status; its merger with another business; acquisition of its ownership; the employer becomes insolvent; the employer has suffered continuous losses for two years consecutively as proven by financial reports; the employer is closing the business permanently.
Notice Period
  • There is no law that specifies notice periods for an employee’s dismissal from work.
  • In practice, 30-days notice is given to the employee to terminate his or her employment contract.
Severance Pay

Employees who are discharged from their job are entitled to receive a payment depending on their length of service:

  • Less than one year – 1 month's wages
  • Less than two years – 2 months' wages
  • Less than three years – 3 months' wages
  • Less than four years – 4 months' wages
  • Less than five years – 5 months' wages
  • Less than six years – 6 months' wages
  • Less than seven years – 7 months' wages
  • Less than eight years – 8 months' wages
  • Over eight years – 9 months' wages
Probation Period
  • Three-month probationary periods are permitted for employees on indefinite-term contracts if agreed upon in writing between both parties.
  • An employer cannot impose a probationary period on an employee on a fixed-term contract.

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
ID
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The Republic of Indonesia

Currency
Indonesian rupiah (IDR)
Payroll Frequency
Monthly
Employer Taxes
10.24% - 11.74%

About 

Indonesia

Jakarta is Indonesia's capital city. Located off mainland Southeast Asia, it lies across the equator.

Overview

Population
270,203,917
Language
Indonesian
Capital
Jakarta
Currency
Indonesian rupiah (IDR)
Country code
+62
Min wage
Varies depending on region
Working hours
9 AM - 5 PM
Weekdays
Monday to Friday
Work hours per week
8 hours

Payroll

Cycle
  • Wages can be paid bi-weekly or monthly, but they should be received by the end the month.
Avg employer tax

10.24% - 11.74%

Taxation

Tax breakdown - Employer

Employer Payroll Contribution

  • Work Accident: 0.24% - 1.74%
  • Old Age: 3.70%
  • Death: 0.30%
  • Pension: 2%
  • Health Insurance: 4%
VAT
  • 10% standard rate.

Holidays / PTO

Public holidays
  • 01 January: New Year's  Day    
  • 12 February: Chinese  Lunar New Year's Day    
  • 11 March: Maha  Shivaratri    
  • 11 March:  Ascension of  the Prophet Muhammad    
  • 12 March: Joint  Holiday (Cuti Bersama)    
  • 14 March: Bali's Day of  Silence and Hindu New Year (Nyepi)  
  • 20 March: March Equinox    
  • 29 March: Holi    
  • 02 April: Good Friday    
  • 04 April: Easter  Sunday    
  • 01 May: International  Labor Day    
  • 12 May: Idul  Fitri Joint Holiday    
  • 13-May: Idul Fitri    
  • 13 May: Ascension  Day of Jesus Christ    
  • 14-May: Idul Fitri  Holiday    
  • 17 May: Idul  Fitri Joint Holiday    
  • 18 May: Idul  Fitri Joint Holiday    
  • 19 May:  Idul  Fitri Joint Holiday    
  • 26 May: Waisak Day (Buddha's Anniversary)    
  • 01 June: Pancasila  Day    
  • 21 June: June Solstice    
  • 20 July:  Idul Adha    
  • 10 August: Muharram  / Islamic New Year    
  • 11 August: Muharram  / Islamic New Year    
  • 17 August: Indonesian  Independence Day    
  • 22 August: Raksha  Bandhan    
  • 30 August: Janmashtami    
  • 10 September: Ganesh  Chaturthi    
  • 23 September: September  Equinox  
  • 07 October:  Navaratri    
  • 15 October: Dussehra    
  • 20 October: Maulid  Nabi Muhammad (The Prophet Muhammad's Birthday)    
  • 04 November: Diwali /  Deepavali    
  • 21 December: December Solstice    
  • 24 December: Christmas Eve    
  • 25 December: Christmas  Day    
  • 27 December: Boxing  Day    
  • 31 December: New Year's  Eve
Sick days
  • Employees who are injured or sick are eligible for paid sick leave provided that they can show proof of their illness.
  • Long-term sick leave can be granted to employees for up to one year.
  • This should be recommended by a doctor in writing.
  • Employees on extended sick leave are paid as follows: 100% for the first four months, 75% for the second four months, 50% for the third four months, 25% of wages until termination.
Maternity leave
  • Pregnant employees can take three months of paid maternity leave.
  • 1.5 months of this leave are taken during the prenatal period.
  • The other 1.5 months are taken following childbirth.
  • Employees receive their full salary during maternity leave.
  • If a doctor recommends it, miscarriage victims are entitled to a 1.5 month rest period.
Paternity leave
  • The father of a newborn child is entitled to two days' leave in case of miscarriage or birth.

Termination

Termination Process
  • Before an employee can be terminated, the employer must make a genuine effort to avoid the termination by negotiating with the employee and/or the employee’s labor union to find an accommodation such as a change in working hours, improved working methods, or coaching.
  • If termination cannot be avoided, the employer must explain the reasons for termination clearly in writing to the employee and/or the employee’s labor union.
  • If the employee believes the termination is unjust, the decision can be challenged in the Labor Court, which will give the final ruling.
  • The reasons for which employees can be discharged from work are as follows: The employee violates the employment agreement; the employee is imprisoned; the employee is ill for more than 12 months; the employee is absent from work for more than five days without a valid reason, provided he or she has been notified twice; the employee has reached retirement age. Not all reasons for employees’ dismissal should be related to their misbehavior.
  • The employer can discharge employees for several business-related reasons as follows: A change of the company’s status; its merger with another business; acquisition of its ownership; the employer becomes insolvent; the employer has suffered continuous losses for two years consecutively as proven by financial reports; the employer is closing the business permanently.
Notice Period
  • There is no law that specifies notice periods for an employee’s dismissal from work.
  • In practice, 30-days notice is given to the employee to terminate his or her employment contract.
Severance Pay

Employees who are discharged from their job are entitled to receive a payment depending on their length of service:

  • Less than one year – 1 month's wages
  • Less than two years – 2 months' wages
  • Less than three years – 3 months' wages
  • Less than four years – 4 months' wages
  • Less than five years – 5 months' wages
  • Less than six years – 6 months' wages
  • Less than seven years – 7 months' wages
  • Less than eight years – 8 months' wages
  • Over eight years – 9 months' wages
Probation Period
  • Three-month probationary periods are permitted for employees on indefinite-term contracts if agreed upon in writing between both parties.
  • An employer cannot impose a probationary period on an employee on a fixed-term contract.

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
ID
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation