Hire and pay employees in
Indonesia, hassle-free

With Deel, your business can easily hire employees in Indonesia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Indonesia is 3 days with Deel.


Indonesian Rupiah (IDR or Rp)



Official Language

Bahasa Indonesia

Payroll Cycle


Onboard, pay and manage employees in Indonesia with Deel.

Usually, to hire in Indonesia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Indonesia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Indonesia
built right in

Deel allows you to provide localized benefits for employees in Indonesia within minutes. All in one manageable online dashboard.

  • Private Healthcare - Unisure (optional)
  • Private Healthcare - KBRU (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Indonesia

Navigate the tabs below to learn everything you need to know about hiring an employee in Indonesia

Minimum Wage Requirements

Jakarta - IDR 5,067,381 per month
Other minimum wages vary by province.

Individual Income Tax

The individual income tax ranges from 5% to 35%. Income tax is calculated according to progressive rates.

Gross Annual Income (IDR) Tax Rate (%)
Up to IDR 50 million 5%
From IDR 60 million to IDR 250 million 15%
From IDR 250 million to IDR 500 million 25%
From IDR 500 million to IDR 5 billion 30%
Above IDR 5 billion 35%

Payroll Cost

The employer cost is generally estimated at 10.24% of the employee salary.

  • Provident fund - 3.70%
  • Death Security - 0.30%
  • Work-related accident benefit - 0.24%
  • Healthcare and social security - 2*
  • Pension Fund - 4**

*capped at IDR 200,846 per month
**capped at IDR 480,000 per month

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day for 5 working days, and 7 hours per day for 6 working days, totalling 40 hours per week. The standard work week is from Monday to Friday.

Overtime in Indonesia is complex. Overtime payment is not mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime per day, and 18 hours of overtime per week. Overtime is paid between 150% to 400% of hourly wage depending on if it is a regular work day or weekend as well as the number of overtime hours worked.

  • 150% of the hourly rate, the first 1 hours.
  • 200% of the hourly rate, the following hours.

For employees working on the weekend or public holiday overtime is calculated as follows:

  • 200% of the hourly rate, the first 8 hours.
  • 300% of the hourly rate, the following 1 hour.
  • 400% of the hourly rate, the following 2 hour.

Maternity Leave

Pregnant employees are entitled to 3 months of paid leave. 1.5 months must be taken before the child's birth. The remaining 1.5 months must be taken after the child’s birth. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

The employee cannot extend leave.

Paternity Leave

Employees are entitled to 2 days of paid paternity leave. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.

The employee cannot extend leave.

Parental Leave

In Indonesia, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

There is no maximum number of days that an employee can use sick leave. This leave is paid at different rates by the employer depending upon length:

Period Pay (% of base salary)
First 4 months 100%
4-8 months 75%
8-12 months 50%
12-13 months 25% before the employer terminates the employment contract 

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Indonesia can be complex. There is no at-will termination in Indonesia for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Death of worker
  • Completion of assignment
  • By expiration of the contract
  • Unilaterally by the employer based on:
    • probation period
    • objective grounds
    • disciplinary dismissal
    • performance due to unsuitability for the job
    • merger or acquisition of company
    • bankruptcy
    • inability to work due to medical conditions

Notice Period

In Indonesia there is no minimum notice stipulated in law. Generally termination by the employer lasts:

  • Notice during probation period - 7 days
  • Minimum notice period - 30 days

Termination by employee:

  • Minimum notice period - 30 days

Severance for Employees

In Indonesia, all employees who are terminated are entitled to severance pay. Severance pay will depend on the length of employment and base salary.

Length of employment Severance pay
Less than 1 year 1 month wage
Between 1 to 2 years 2 months wage
Between 2 to 3 years 3 months wage
Between 3 to 4 years 4 months wage
Between 4 to 5 years 5 months wage
Between 5 to 6 years 6 months wage
Between 6 to 7 years 7 months wage
Between 7 to 8 years 8 months wages
Above 8 years 9 months wage


To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Full-time employees are entitled to 12 days of paid time off (PTO) a year. PTO accrues with 1 day of PTO per month. Employees are eligible for annual leave after completing 1 year of employment.
Part-time employees are not entitled to PTO.

Public Holidays

Indonesia celebrates 15 national holidays. National holidays include:

  • New Year’s Day
  • Lunar New Year
  • Ascension of the Prophet Muhammed
  • Silence Day
  • Good Friday
  • Eid al Fitr
  • Labor Day
  • Ascension of Jesus Christ
  • Pancasila Day
  • Vesak Day
  • Eid al Adha
  • Islamic New Year
  • Indonesia Independence Day
  • Prophet Muhammad’s Birthday
  • Christmas Day


Onboarding takes 3 business days.

Employment Contract Details

Contracts must be in Indonesian language and latin alphabet, and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • Name, address of the company, and nature of business
  • Position
  • Place of work
  • Salary and payment method
  • Terms of employment which cover the rights and obligations of employer and employee
  • Start date and period of employment agreement
  • Place and date of the employment agreement is made

Probation Period

Probation periods are not mandatory. The probation period is 3 months for indefinite contacts. There is no minimum length for definite contracts. Fixed-term contracts cannot have probation periods. 

Download the complete guide to hiring in Indonesia

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Hiring in Indonesia, hassle-free

With Deel, your business can easily hire employees in Indonesia with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Indonesia and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Indonesia?

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