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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Hire employees in
Indonesia
without setting up an entity
Usually, to hire in
Indonesia
, your business needs to set up an entity. That means a local office, an address registered as a subsidiary and an account with a local bank. This, plus navigating regional payroll, tax, and HR laws, can take months.
Indonesia
also treats contractors differently than full-time employees, so misclassifying a contractor could lead to penalties. Deel lets you can hire employees in
Indonesia
quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
We partner with local lawyers to ensure you’re compliant
With labor law experts in 150 countries, you can pick from a library of localized contracts to legally onboard your international team in minutes.
We’ll make sure your team get the best benefits
Deel allows you to legally hire and provide benefits for employees in
Indonesia
within minutes.
All in one manageable online dashboard.
Contents
Quick OverviewStatutory HolidaysGeneral TaxationAdditional informationTermination RequirementsSpeak to our team about how to compliantly hire in
Indonesia
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 uninterrupted service.
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 Tax
Approx. 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 maximum probation period is 3 months.
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 three 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 are taken 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 four months, an employee gets 100% of their salary
- After four months, their pay is reduced by 25%
- An employer can terminate employment after 12 months of sick leave
Termination requirements for employees in
Indonesia
Paid Time Off
In Indonesia, employees are entitled to 12 days of paid leave after one year of uninterrupted service.
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
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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.