Hire employees in

Indonesia, hassle-free

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.

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

Download the Guide


Indonesian Rupiah (IDR or Rp)



Official Language

Bahasa Indonesia

Payroll Cycle


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.

  • Private Healthcare - Unisure (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

Minimum wage ranges from IDR 1,813,011 to IDR 4,452,724 per month depending upon the local province minimum wage regulations.

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%

Employer Cost

The employer cost is generally estimated at 4.24% of the employee salary.

  • Provident fund - 3.70%
  • Death Security - 0.30%
  • Work-related accident benefit - 0.24%
  • Healthcare and social security - Rp 480,000
  • Pension Fund - Rp 175,092

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%
Next 4 months 75%
Next 4 months (After first 8 months) 50%
For each subsequent month 25%

Termination Requirements

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

Paid Time Off

Both full-time and part-time employees are entitled to 12 working days of paid time off (PTO) a year. PTO accrues with 1 day of PTO for every 23 days, up to a maximum of 12 days per year. Employees are eligible for annual leave after completing 1 year of employment.

Public Holidays

Indonesia celebrates 15 national holidays. National holidays include:

  1. New Year’s Day
  2. Chinese New Year
  3. Isra Mi’raj
  4. Hindu New Year
  5. Good Friday
  6. Labour Day
  7. Ascension Day of Jesus Christ
  8. Eid Dul Fitri (2 days)
  9. Waisak Day
  10. Pancasila Day
  11. Idul Adha
  12. Islamic New Year
  13. Independence Day
  14. Prophet Muhammad's Birthday
  15. 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.

Download the complete guide to hiring in Indonesia

Simply fill out your details below to gain access to our complete guide to hiring in Indonesia.

Hiring 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.

Group (8)

599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

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

View our Employee Cost Calculator

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