Skip to content

Type

Try searching for: Click to search

Indonesia

Global Employment Solutions & PEO in Indonesia

Omnipresent makes it fast and easy to employ remote talent in Indonesia. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Indonesia

Omnipresent Employment Rating

Capital City
Jakarta
Currency
Indonesian rupiah (Rp, IDR)
Language
Indonesian
Payroll Frequency
Monthly
Population

How do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Indonesia. Traditional methods of establishing global employment and subsidiaries in Indonesia typically take months and can incur heavy costs. Omnipresent's global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Indonesia in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.

  • Your company conducts the hiring and candidate selection process in Indonesia.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Indonesia.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Indonesia.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Curious to learn more?

Employer Costs in Indonesia

Employer costs include Health, Pension, and Life/Death Insurance. Use the OmniCalculator to estimate costs or contact us for further information.

Employee Income Taxes in Indonesia

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 5% - 30%.

Employee Social Contributions in Indonesia

Employee contributions include Old Age, Pension, and Health Insurance.

Working Hours in Indonesia

Typical working hours in Indonesia are 7 hours a day, with 40 hours a week limit in a 6-day week or 8 hours a day, 40 hours a week in a 5-day week. In Indonesia, overtime must be agreed with the employee. The maximum overtime is 3 hours per day and 14 hours per week. Payment rate and other specifics on overtime are provided in the employment agreement. 

Holidays & Vacation in Indonesia

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Saturday, Jan 01, 2022 - New Year's Day (Hari tahun baru)
  • Tuesday, Feb 01, 2022 - Chinese New Year (Tahun Baru Imlek)
  • Monday, Feb 28, 2022 - Laylat al-Mi'raj (Maulid Nabi Muhammad)
  • Thursday, Mar 03, 2022 - Nyepi (Hari Raya Nyepi)
  • Friday, Apr 15, 2022 - Good Friday (Wafat Yesus Kristus)
  • Sunday, May 01, 2022 - Labour Day (Hari Buruh Internasional)
  • Monday, May 02, 2022 - End of Ramadan (Eid al-Fitr) (Hari Raya Idul Fitri)
  • Tuesday, May 03, 2022 - End of Ramadan (Eid al-Fitr) (Hari Raya Idul Fitri)
  • Monday, May 16, 2022 - Vesak Day (Hari Raya Waisak)
  • Thursday, May 26, 2022 - Ascension Day (Kenaikan Yesus Kristus)
  • Wednesday, Jun 01, 2022 - Pancasila Day (Hari Lahir Pancasila)
  • Saturday, Jul 09, 2022 - Feast of the Sacrifice (Eid al-Adha) (Hari Raya Idul Adha)
  • Saturday, Jul 30, 2022 - Islamic New Year (Tahun Baru Islam)
  • Wednesday, Aug 17, 2022 - Independence Day (Hari Ulang Tahun Kemerdekaan Republik Indonesia)
  • Saturday, Oct 08, 2022 - Birthday of Muhammad (Mawlid) (Maulid Nabi Muhammad)
  • Sunday, Dec 25, 2022 - Christmas Day (Hari Raya Natal)

Sick Leave Entitlement in Indonesia

Employees are entitled to paid sick leave provided they show a medical certificate. Sick leave is paid at 100% of salary received during the first 4 months of sickness and pay percentages decrease thereafter. If the illness lasts longer than 12 months, the employer is entitled to terminate the employment with severance payment. 

Parental Leave in Indonesia

Maternity: Female employees are entitled to take 3 months of fully paid maternity leave (full salary). 1.5 months are taken prior to the birth, and 1.5 months are taken post-birth. Paternity: Male employees are entitled to 2 days paid paternity leave if the mother goes into labour or miscarries.  Parental: Employees are entitled to 2 days of paid leave for their child's wedding, circumcision, baptism or death.

Annual Leave Entitlement in Indonesia

Employees in Indonesia are entitled to a minimum of 12 working days of paid annual leave per year after one year of uninterrupted employment.

Unused vacation days expire six months after the date they were supposed to be taken. Employees and employers may agree upon compensation for unused vacation  days.

Muslim employees may take special leave to fulfil religious duties.

Severance Pay Entitlement in Indonesia

Depending on the basis of the termination of employment, employees may be entitled to severance payment when they are terminated.

  • Standard severance pay is one months’ salary for every year of service, up to 9 months salary.

  • Service appreciation pay is 2 months salary for the first 3 years of service, followed by an additional month of salary for every 3 years of service thereafter, up to a maximum of 10 months salary for 24 years of service.

If the termination is without cause or there is termination on retirement, the employee is entitled to 2 times the severance pay amount plus the standard service appreciation pay.

Termination in Indonesia

Termination requires approval from the Industrial Relations Court (IRC) and requires a cause, unless agreed to a mutual termination with the employee. This agreement should be registered with the IRC to be valid.

An employee can declare their rejection of the termination by submitting a written rejection no later than 7 working days after receiving the notice.

Estimate employment costs with OmniCalculator

Global Employment Cost Calculator

Get an estimate of the employment costs for hiring in Indonesia.

United Kingdom

GBP 60,000 annual salary

Base Salary
Employer's Costs (Estimate)
VAT
Average Monthly Employer Cost *

* These employer costs are subject to frequent updates, and can depend on a variety of employee variables. They are only a ballpark estimate, and the actual figure may be above or below the quoted amount based on a number of variables. These estimates represent a monthly average each year. In some cases, contribution maximums will lead to payments earlier in the year being larger, before being reduced once max is hit. If a 13th and 14th month are applicable, these have been pro-rated into the gross salaries.

Expertise at your fingertips

Book your free consultation with one of our experts to see how easy it can be to employ in .

Employ the Best Talent, Anywhere in the World

Grow Your Global Team

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It's important to note that labour laws and regulations in Indonesia are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We're here to help you every step of the way.

Our clients rate us over 4.7 out of 5.
Want to see why?

Source: Trustpilot and G2 reviews in November 2022