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.
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 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.
- 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.
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