Hire 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.

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Employee - Indoensia

Hire employees in Indonesia No entity needed.

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.

Indonesia also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Indonesia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

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.

  • Health Insurance
  • Worker Compensation Insurance
  • Life Insurance
  • Pension & Life Insurance


    Speak to our team about how to compliantly hire in Indonesia

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    Quick Overview

    Currency: Indonesian Rupiah (IDR)

    Capital: Jakarta

    Official language: Bahasa Indonesia

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In Indonesia, employees are entitled to 12 days of paid leave after one year of employment.

    Public Holidays

    Indonesia celebrates 15 national public holidays

    • New Year's Day
    • Good Friday
    • Labor Day
    • Independence Day
    • Christmas Day
    • Chinese New Year
    • Isra Mi'raj
    • Bali Hindu New Year
    • Hari Raya Idul Fitri
    • Ascension Day of Jesus Christ
    • Waisak Day
    • Pancasila Day
    • Idul Adha
    • Islamic New Year
    • Prophet Muhammad's Birthday

    General Taxation

    Individual Income Tax

    The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 5% to 30%

    Employer Cost

    Approximately, 9.75% of employee salary.

    Additional information

    Employment Contract Details

    Employment contracts must be written and in Bahasa using the Latin alphabet. If an employment agreement is in both Indonesian and a foreign language, the Indonesian version prevails if there are differences in interpretation.

    Probation Period

    The minimum probation period is 3 months and the maximum is 2 years.

    Minimum Wage Requirements

    Minimum wages varies from region to region, it ranges from IDR 2,213,000 to IDR 4,280,000

    Maximum working hours and overtime

    The working hours are arranged as follows:

    • Employees with 6 workdays a week work 7 hours a day and 40 hours a week.
    • Employees with 5 workdays a week work 8 hours per day and 40 hours a week.

    These rules for working hours do not apply to certain businesses and are usually regulated with a Ministerial decision.

    Bonus and expense payments

    Employers are required to pay the Tunjangan Hari Raya (THR) or religious allowance. The THR is paid to workers who have been working for longer than 3 months. Workers who have been working for a consecutive 12-month period are entitled to a minimum THR amount of one month's salary.

    Parental Leave

    • Maternity leave: employees are entitled to take 3 months of fully paid maternity leave. 1.5 months should be taken prior to the birth and 1.5 months post-natal.
    • Paternity Leave: employees are entitled to 2 days' paid paternity leave.

    Sick Leave

    While a set number of sick days don't exist in Indonesia, the employer can reduce an employee's salary based on the time they've been out. The employer, not the government, covers sick pay. The structure for sick leave is as follows:

    • For the first 4 months, an employee gets 100% of their salary
    • After 4 months, their pay is reduced by 25%
    • An employer can terminate employment after 12 months of sick leave

    Termination requirements for employees in

    Rules concerning severance pay differ based on reasons for the dismissal/employment termination. Employers can't dismiss an employee at will. The employer will need to file a lawsuit unless a mutual agreement is made with the employee, if the dismissal is not due to the employee's fault (dismissal without cause), the employee is entitled to two times the severance pay amount plus the standard service appreciation pay and compensation.

    Notice Period

    There's no notice of termination under Indonesian labor law. However, common practice is to provide 1 month's notice.

    Employees can resign with 30 days of notice.

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    Deel is the best!!

    “Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

    Manuela Echeverry
    Nov 20, 2020
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    A contracting life-changer!

    "This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

    Kix Panganiban
    Dec 3, 2020
    5 Stars

    Great service offering!!

    "The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

    Michael US
    Oct 28, 2020
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    Terrific service

    "Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

    Nunzio Martinello
    Dec 15, 2020
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    Deel is a game-changer for distributed teams

    "Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

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    Nov 16, 2020
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    Great app with great customer service

    "Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

    Felipe Marote
    Jan 29, 2021