.png)
* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Indonesia's abundant workforce, ranked fourth globally in population, offers a diverse talent pool conducive to remote team building.
The country's youthful demographics and tech-savvy workforce make it an appealing destination for businesses seeking dynamic professionals.
Proficiency in English among Indonesians further enhances its attractiveness for companies targeting English-speaking markets.
Moreover, Indonesia's cultural values emphasizing teamwork and respect for authority contribute to a positive work environment conducive to collaboration.
In Indonesia, employment is governed by Law No. 13 of 2003 on Manpower. Contracts must be in Indonesian using the Latin alphabet, with the Indonesian version being legally binding. Employment contracts should outline:
The maximum probation period in Indonesia is 3 months. This probation period can only be applied to employees who are on permanent employment contracts (known as indefinite-term contracts). Probation is not applicable to fixed-term (temporary) employment contracts.
In Indonesia, standard working hours are either 7 hours per day, totaling 40 hours per week for six-day workers, or eight hours per day, amounting to 40 hours per week for five-day workers.
In Indonesia, exceeding standard weekly hours constitutes overtime, governed by contract terms or collective agreements, with a maximum of 3 hours per day and 18 hours per week allowed. Overtime compensation on weekdays starts at 150% of the regular hourly wage, rising to 200% for subsequent hours.
The minimum wage per month in Indonesia is determined by local government regulations per region and exhibits a range from 2,165,244 IDR in East Java to 5,067,381 IDR in DKI Jakarta.
In Indonesia, employees are entitled to the mandatory Tunjangan Hari Raya (THR) bonus, equivalent to one month's salary, ahead of significant religious holidays (Hari Raya Idul Fitri for Muslims, Christmas for others). THR comprises the base salary and a fixed monthly allowance, adjusted for those with less than a year of service. Additional bonuses are not mandatory.
In Indonesia, employment taxes operate under the Pay As You Earn system. Individual income tax rates in the country vary from 5% to 30%, and the calculation follows a progressive rate structure as follows:
Pensions in Indonesia are administered through the BPJS Manpower Social Security Program, which consists of Old Age Insurance (mandatory contributions from both employers and employees) and Pension Insurance (where only employers contribute). Participation in these programs is mandatory under Indonesian employment law to ensure financial support for retirement.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Indonesia tailored to your needs.
In Indonesia, prior to termination, employers are required to engage in negotiations with employees or labor unions to explore alternatives. If termination becomes necessary, clear written explanations for the reasons must be provided. Valid grounds for employee dismissal in Indonesia include:
In Indonesia, there is no legally mandated minimum notice period. However, customary notice periods for employer-initiated terminations are as follows:
Severance pay is mandatory, if applicable, and is determined based on the employee's length of service as follows:
Annually, the government in Indonesia has the authority to determine whether public holidays that coincide with weekends will be rescheduled to a weekday or forfeited altogether.
In Indonesia, all employees, including expatriates with a minimum six-month tenure, must contribute to the National Social Security System (SJSN) administered by BPJS. These statutory benefits include:
At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.
It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.
Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.
.webp)
Access a free set of tools to navigate international hiring across 180+ countries, while staying up to date on hiring news with global insights into the changing employment landscape from Playroll.
.png)
