Acquire great talent in Indonesia with EOR

An Employer of Record (EOR) solution lets you employ and manage workers efficiently in Indonesia by taking care of:

Leading enterprises across all industries rely on us

A quick glimpse of hiring in Indonesia


Salary payment currency

English / Indonesian

Contract language


Working hours per week

Varies across provinces

Min. hourly salary

10.24% - 11.74%

Employer cost


Bank holidays per year

1st Jan - 31st Dec

Tax cycle


Employee tax

Looking to employ staff in Indonesia hassle-free ?

Everything you need to know before
making your first hire in Indonesia

Contracts & Agreements

Compensation & Benefits

Taxes & Costs

Termination & Severance

Hire and manage your workforce anywhere in APAC

Contracts & Agreements

Employment contracts are legally binding documents that are recommended for different kinds of employment in Indonesia: fixed-term and indefinite-term. For both, the employment contract lays out important information such as the designation, the salary, working hours and other policies.


This kind of employment contract has a definite duration for which an employee may be associated with a project or a company. With a maximum initial term of 2 years, these contracts can be repeatedly renewed upon mutual agreement from both parties. These are called Perjanjian Kerja Waktu Tertentu (PKWT).

Open-ended or indefinite-term

This contract specifies no specific end date to the association of an employee with a project or company. This contract can be used to hire full-time as well as part-time employees.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.

Compensation & Benefits

Minimum Pay

This substantially differs from province to province. In Jakarta, 4.64M IDR/month is the minimum wage.

Payout Cycle

Employee salary is usually paid out on a monthly basis.

Working Hours

Employees are expected to work 8 hours/day from Monday to Friday, or 7 hours/day from Monday to Saturday. Beyond 40 hours, the work will be counted as overtime.

Guaranteed Benefits

Ask us for a Salary Benchmark for your EOR worker.

Streamline payroll, taxes, and every other HR administration task with one service: Employer Of Record (EOR)

Taxes & Costs

Tax for Employees

Employees are subjected to pay taxes as per the following income brackets by law:
Taxable income band (IDR) National income tax rate
0 - 60 million IDR
60 - 250 million IDR
250 - 500 million IDR
500 million - 5 billion IDR
Above 5 billion IDR

Employer Cost

Employers pay anywhere between 10.24% and 11.74% of employee salaries to the country’s social security system, which manages an employee’s pension scheme, insurance, work accident and other benefits. In Indonesia, the social contributions are referred by the following:
Social Contribution Indonesian term Definition
Jaminan pension (JP)
Granted upon reaching the pension age.
Old Age
Jaminan hari tua (JHT)
Given when an employee reaches the retirement age, passes away, or suffers from permanent disability.
Jaminan Kematian (JKM)
Received if an employee dies during employment with the company.
Labor Insurance
Jaminan kecelakaan kerja (JKK)
A form of compensation received to cover medical expenses when an accident occurs when an employee is performing their job.
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.​


Every employee working in Indonesia is provided different types of leaves throughout the year. These include:

Annual Leave

Full-time employees in Indonesia are entitled to 12 days of annually paid leave after 1 year of service. Employees with continuous service to a single employer for six years are eligible for a one-month leave in their seventh year of employment and an additional one-month leave in their eighth year of service.

Parental Leave

Maternity leave is issued to mothers for a duration of 3 months. This leave is fully paid. Fathers get a paid paternity leave for 2 days. Additionally, parents also get an annual ‘parental paid leave’ for events such as marriage, circumcision, baptism, or death of a child for a total of two days per event every year.

Sick Leave

While sick leave is not mandatory under legislation in Indonesia, it may be given as a benefit by the employer. For long-term sick leaves, upon submitting a doctor’s certificate, an employee may receive paid sick leaves as per the following compensation structure:
Months Compensation
0 - 4 months
100% salary
4 - 8 months
75% salary
8 - 12 months
50% salary
12 months until termination
25% salary
In addition to the paid leave for observing public holidays, employees in Indonesia also benefit from marriage leave, baptism leave, menstrual leave, and bereavement leave. For a full list of leaves and public holidays that your new hire in Indonesia is entitled to, talk to one of our experts.

Termination & Severance


Employers are required to notify the employee, the district & provincial labor offices, and the Industrial Relations Court (IRC) of the intent to terminate with valid reason. Once the employee accepts it, the agreement ends after a notice period which is typically 30 days.

Severance Pay

Employees in Indonesia are entitled to severance pay, the amount of which depends on the duration of their service. For someone with less than a year of service, the severance pay will be capped at a month’s salary. As the number of years increase, the severance amount will subsequently be increased up to a maximum of 9 months severance for more than 8 years of service.

Ready to expand your business across multiple countries in the APAC region?

Why choose an Employer Of Record (EOR)
in Indonesia?

An Employer Of Record (EOR) solution is relevant for multiple use cases:

Why trust BGC as your Employer Of Record (EOR)?

Industry Expertise

Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.

Technology Leverage

Streamline operations with advanced technology which result in quicker time to onboard and pay.

Cost-effective pricing

Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.

Talk to us and make hiring in APAC a breeze!

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