In Indonesia, it’s important to adhere to employment laws surrounding working hours and overtime regulations to remain compliant and boost employee satisfaction. Learn more about standard working hours, overtime regulations, and employer responsibilities in Indonesia.
Capital City
Jakarta
Currency
Indonesian Rupiah
(
Rp
)
Timezone
WIB, WIT and WITA
(
GMT +7/8/9
)
Payroll
Monthly
Employment Cost
10.24% – 11.74%
In Indonesia, the standard working hours for employees vary depending on their age and employment type. An employee who is under the age of 18 can work a maximum of 7 hours per day and 35 hours per week. Employees who are 18 years or older are allowed to work up to 8 hours per day and 40 hours per week. If an employee works more than 3 hours in a day, a meal break of at least 30 minutes must be given. The typical working hours in Indonesia, for most employees, are Monday through Friday, from 9:00 AM to 5:00 PM.
In Indonesia, the law sets a cap on the maximum working hours for employees at 8 hours per day and 40 hours per week. However, there are exceptions when overtime is required, such as in cases of business demand or emergency situations. Overtime work cannot exceed 3 hours in a day, and the total number of overtime hours worked in a week should not exceed 18 hours. Employers must compensate employees for overtime at a higher rate, usually 1.5 times the regular hourly rate, and ensure that the employees have adequate rest periods.
Certain industries in Indonesia have specific exceptions to standard working hours due to the nature of their operations. For example, workers in sectors like healthcare, transportation, and hospitality may be required to work beyond the standard hours because of the round-the-clock nature of these industries. In the healthcare sector, for instance, employees might work longer shifts or rotating schedules to ensure continuous patient care. These industries often provide additional compensation or rest time to make up for the extended hours worked, although the specifics can vary by employer or sector agreements.
In Indonesia, managerial employees or those considered exempt from regular labor laws may not be subject to the same working hour regulations. Managerial employees are typically those in high-level positions with decision-making authority, and they often have flexible working hours. Exempt employees, on the other hand, are typically salaried workers who perform duties that don't involve routine tasks, and their working hours may not be as strictly enforced. These employees may be expected to work beyond the normal 8-hour day, but they are generally not entitled to overtime pay unless otherwise specified in their contracts.
In Indonesia, full-time employment is generally defined as working 40 hours per week. These hours are standard across most industries, although some companies or specific job roles might have slightly different arrangements depending on the contract or sector agreements. For example, employees in retail or customer service might have different schedules, with split shifts or weekend work, but the total weekly hours typically add up to 40 hours or less.
Indonesia has specific regulations regarding overtime to ensure employees are fairly compensated for additional hours worked beyond their regular schedule.
Overtime in Indonesia refers to any work performed beyond the standard 8 hours per day or 40 hours per week. Overtime is considered extra work that requires the employer's agreement. Employees who are asked to work overtime must be compensated at higher rates, as outlined by the law. In certain situations, such as emergencies or business needs, overtime may be required, but employees are still entitled to the appropriate compensation.
In Indonesia, the maximum overtime allowed is 3 hours per day, with a weekly cap of 18 hours. Employers who require employees to exceed these limits could be violating labor laws. If an employer asks an employee to work overtime beyond the legal cap, they could face penalties, such as fines or other legal consequences. These regulations ensure that employees do not work excessive hours without proper compensation and that their well-being is considered.
Overtime pay in Indonesia is typically calculated at 1.5 times the regular hourly wage for overtime worked on regular weekdays. For overtime worked on weekends or public holidays, the rate may increase to double the regular hourly rate. Employers are required to follow these payout rates, ensuring employees are fairly compensated for any extra hours worked. Specific industries or company policies may have variations, but the basic requirement remains that overtime compensation must align with the legal standards.
In Indonesia, employees are entitled to rest periods during their workday and between shifts. If an employee works for more than 4 hours in a day, they are entitled to a break of at least 30 minutes. For shifts lasting more than 6 hours, employees should receive a longer break, typically 1 hour. In addition to these daily rest periods, employees are entitled to at least 12 hours of rest between shifts. Employers must ensure compliance with these rest period regulations to promote employee health and productivity.
In Indonesia, night shifts are generally defined as work performed between 11:00 PM and 6:00 AM. Employees who work during these hours are entitled to additional compensation or benefits, such as night shift allowances or higher pay rates. Weekend work is also subject to specific rules, and employees who work on Saturdays or Sundays are often entitled to overtime pay. These additional benefits are meant to compensate employees for the inconvenience and potential disruption to their personal time caused by working during non-standard hours.
Expanding your workforce across international borders is an exciting step, but it can be challenging to keep up with ever-changing local labor laws and regulations in different countries. That’s the advantage of using an Employer of Record like Playroll:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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In Indonesia, the standard legal working hours are 8 hours per day and 40 hours per week. Employees may work additional hours, but overtime must be compensated at a higher rate.
The maximum overtime allowed in Indonesia is 3 hours per day, with a weekly cap of 18 overtime hours.
Overtime pay in Indonesia is calculated at 1.5 times the regular hourly rate for overtime on weekdays, and at 2 times the regular hourly rate for overtime on weekends or public holidays.
Employers who violate working hour regulations, such as exceeding the overtime limits or failing to compensate employees correctly, may face fines, legal action, or other penalties under Indonesian labor laws.
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