Overview
Currency
Indonesian rupiah (IDR)
Min wage
Varies depending on region
Work hours per week
8 hours
Tax Breakdown
Employer Payroll Contribution
- Work Accident: 0.24% - 1.74%
- Old Age: 3.70%
- Death: 0.30%
- Pension: 2%
- Health Insurance: 4%
Tax Calculation for Indonesia
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

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How it works
Onboarding Process
Onboarding in Indonesia typically includes the following steps to ensure a smooth transition for new hires:
Pre-boarding
Pre-boarding
Pre-boarding
Key Elements of an Employment Contract in Indonesia
When drafting an employment contract for employees in Indonesia, the following key elements should be included:
Name, contact information, and role of the employee.
Employee Leave Policies
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.
Public holidays in Indonesia
- 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
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.
Name, contact information, and role of the employee.
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