Indonesia: Payroll & Employment Facts
Verified statutory employment facts for Indonesia, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Indonesia employer-of-record guide and the Indonesia country hub.
What is the minimum wage in Indonesia?
| National minimum wage |
No single national rate; each province sets its own minimum wage (UMP). 2026 examples: Rp 5,239,448/month (DKI Jakarta), Rp 2,107,950/month (Central Java).
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|---|---|
| Next review date |
2026-11-21
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What employer social contributions apply in Indonesia?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
0.54 - 2.04%
|
|---|---|
| Pension |
5.70%
|
| Healthcare |
4.00%
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| Job Loss Security (Jaminan Kehilangan Pekerjaan - JKP) |
0.46%
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| Annual contribution ceiling |
132,859,200 IDR
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| Total employer burden |
10.24 - 11.74%
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What notice and leave rules apply in Indonesia?
Statutory minimum notice the employer must give, by completed length of service.
| Statutory notice |
No fixed statutory notice period for employer dismissal; termination follows a prescribed process (PP 35/2021). Employee resignation requires 30 days' written notice.
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|---|
| Payment in lieu of notice (PILON) |
Not permitted
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|---|---|
| Minimum annual leave |
12 working days
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| Annual leave includes public holidays |
No
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| Public holidays per year |
17 days
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Is 13th-month pay required in Indonesia?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
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| Holiday bonus required |
Yes
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How is severance calculated in Indonesia?
| Formula |
The statutory termination payment in Indonesia is a sum of up to three components, with the final amount depending on the reason for termination. For redundancy due to efficiency: (0.5 x Severance Pay) + (1 x Long Service Pay) + Compensation of Rights. 1. Severance Pay (Uang Pesangon): tiered based on length of service, 1 month's wage for <1 year up to 9 months' wages for 8+ years. 2. Long Service Pay (Uang Penghargaan Masa Kerja - UPMK): tiered for employees with 3+ years service, 2 months' wages for 3-6 years up to 10 months' wages for 24+ years. 3. Compensation of Rights (Uang Penggantian Hak - UPH): includes unused annual leave, relocation costs, and housing/medical allowance at 15% of total Severance Pay and Long Service Pay.
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|---|---|
| Per-year multiplier |
Tiered system (not fixed per year): <1 year: 1 month; 1-<2 years: 2 months; 2-<3 years: 3 months; 3-<4 years: 4 months; 4-<5 years: 5 months; 5-<6 years: 6 months; 6-<7 years: 7 months; 7-<8 years: 8 months; ≥8 years: 9 months. Additional Long Service Pay applies for tenures 3+ years.
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| Minimum qualifying tenure |
0 months
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| Calculation base |
Basic salary plus fixed allowances
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Worked example
Employee with 5 years of service made redundant (efficiency). Annual salary equivalent to monthly salary of 50,000,000 IDR. Severance Pay: 0.5 x (6 months x 50,000,000 IDR) = 150,000,000 IDR. Long Service Pay: 1 x (2 months x 50,000,000 IDR) = 100,000,000 IDR. Compensation of Rights: 15% x (150,000,000 + 100,000,000 IDR) = 37,500,000 IDR. Total Payout: 287,500,000 IDR.