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Indonesia
Indonesia
Navigate country regulations and labor laws across geographies with confidence.
Currency
IDR
State
N.A
Language Spoken
Indonesian
Payroll Frequency
Annually, Monthly, Hourly
General Information
The Republic of Indonesia is an island country in Southeast Asia. It is the world’s largest Island nation spanning over 17,000 different islands. The official language is Indonesian, but there are more than 700 languages spoken across the country. Indonesia has a very strong industrial sector with petroleum, natural gas, mining and textiles at its core. Additionally, the service sector accounts for more than 40% of Indonesian Gross Domestic Product (GDP).
Holidays
There are 21 public holidays. Each year the government may decide if public holidays falling on weekends will be moved to a weekday or will be lost.
PTO
Paid leave in Indonesia is set in the employment contract as at least 12 days of paid annual leave per year after completing one full year of employment. Employees who have been working for six consecutive years for the same employer are entitled to one month of leave in the seventh year of service and one month of leave in the eighth year of service.
Sick Days
When employees are sick or injured, they are entitled to paid sick leave provided they show a medical confirmation of their ill health. Employees can also have long-term sick leave lasting for longer than one year. A doctor should recommend such leave in writing. Payment to employees on prolonged sick leave is as follows:
100.00% in the first four months paid by the employer
75.00% in the fourth to eighth months paid by the employer
50.00% in the eighth to twelfth months paid by the employer
25.00% of wages from one year until termination, paid by the employer.
Severance Pay
In Indonesia, severance pay is mandatory if applicable and is determined by the employee’s length of service:
Less than 1 year of employment – 1-month wage
1 year or more, but fewer than two years – 2 months’ wage
2 years or more but fewer than 3 years – 3 months wage
3 years of more, but fewer than four years – 4 months’ wage
4 years or more, but fewer than 5 – 5 months’ wage
5 years or more, but fewer than 6 – 6 months’ wage
6 years or more, but fewer than 7 – 7 months’ wage
7 years or more, but fewer than 8 – 8 months’ wage
8 years or more – 9 months’ wage
13th Month Salary
In Indonesia, there is a mandatory religious holiday bonus called Tunjangan Hari Raya (THR), an additional one month’s salary payment made prior to the longest religious holiday (Hari Raya Idul Fitri for Muslim workers and Christmas for other faith workers). THR includes a base salary and fixed monthly allowance, but does not have to cover other payments such as bonuses. THR is prorated for employees who have not completed a full year of service.
The Republic of Indonesia is an island country in Southeast Asia. It is the world’s largest Island nation spanning over 17,000 different islands. The official language is Indonesian, but there are more than 700 languages spoken across the country. Indonesia has a very strong industrial sector with petroleum, natural gas, mining and textiles at its core. Additionally, the service sector accounts for more than 40% of Indonesian Gross Domestic Product (GDP).
There are 21 public holidays. Each year the government may decide if public holidays falling on weekends will be moved to a weekday or will be lost.
Paid leave in Indonesia is set in the employment contract as at least 12 days of paid annual leave per year after completing one full year of employment. Employees who have been working for six consecutive years for the same employer are entitled to one month of leave in the seventh year of service and one month of leave in the eighth year of service.
When employees are sick or injured, they are entitled to paid sick leave provided they show a medical confirmation of their ill health. Employees can also have long-term sick leave lasting for longer than one year. A doctor should recommend such leave in writing. Payment to employees on prolonged sick leave is as follows:
100.00% in the first four months paid by the employer
75.00% in the fourth to eighth months paid by the employer
50.00% in the eighth to twelfth months paid by the employer
25.00% of wages from one year until termination, paid by the employer.
In Indonesia, severance pay is mandatory if applicable and is determined by the employee’s length of service:
Less than 1 year of employment – 1-month wage
1 year or more, but fewer than two years – 2 months’ wage
2 years or more but fewer than 3 years – 3 months wage
3 years of more, but fewer than four years – 4 months’ wage
4 years or more, but fewer than 5 – 5 months’ wage
5 years or more, but fewer than 6 – 6 months’ wage
6 years or more, but fewer than 7 – 7 months’ wage
7 years or more, but fewer than 8 – 8 months’ wage
8 years or more – 9 months’ wage
In Indonesia, there is a mandatory religious holiday bonus called Tunjangan Hari Raya (THR), an additional one month’s salary payment made prior to the longest religious holiday (Hari Raya Idul Fitri for Muslim workers and Christmas for other faith workers). THR includes a base salary and fixed monthly allowance, but does not have to cover other payments such as bonuses. THR is prorated for employees who have not completed a full year of service.
Indonesia
