Indonesia
INDONESIA

Employer of Record

EMPLOYER OF RECORD

Employ is a trusted provider of Employer of Record (EOR) solutions for businesses looking to expand in the Asia Pacific, Africa, Europe, and America, covering end-to-end employment services for the remote workforce. We specialize in Outsourced Payroll Services, Remote Staffing, and Visa Services. In addition, we bring a centralized approach to HR management, Payroll & Benefits, and Legal Compliance wherever your staff may be.

277.5 MILLION

total population in 2021

1370 USD Billion

expected GDP in 2023

Indonesia has seen tremendous economic development. It is the world’s fourth most populated country with 280 million inhabitants and the 10th largest economy by purchasing power parity. New employees that are entering the workforce are highly educated and greatly adapt to modern technologies. As a member of G-20, it was able to maintain continuous economic development up to the COVID-19 crisis, recently qualifying the country for upper-middle-income classification by the World Bank. Indonesia’s GDP is projected to trend around 1270 USD Billion in 2022.

PUBLIC HOLIDAYS:17

  • New Year’s Day – January 1 
  • Imlek – varies
  • Isra Miraj – varies
  • Hari Raya Nyepi – varies
  • Good Friday – varies
  • Easter Sunday -varies
  • Labor Day – May 1
  • Cuti Bersama – varies
  • Ascension Day – varies
  • Hari Raya Puasa – varies
  • Waisak Day – May 26
  • Pancasila Day – June 01
  • Idul Adha – July 20
  • Muharram – varies
  • Independence Day – August 17
  • Maulidir Rasul – varies
  • Christmas Day – December 25

 

SOCIAL SECURITY AND TAXATION

Universal Social Security System

Occupational injuries 

 0.24% – 1.74%

Old age savings 

  • Employer contribution: 3.7% 
  • Employee: 2%

Pension benefits 

  • Employer contribution: 2% 
  • Employee: 1%

Health insurance 

  • Employer contribution: 4% 
  • Employee: 1%

Death benefits 

  • Employer contribution: 0.3% 
  • Income Tax Rates: 5%-30%

MINIMUM WAGE

4.4 million rupiahs

WORK HOURS

40 hours

OVERTIME RATE

150% of the normal rate

PROBATIONARY PERIOD

3 months

ANNUAL LEAVE CREDITS

12 days per year

MATERNITY LEAVE

3 months

PATERNITY LEAVE

2 days

SICK LEAVE

not required by law

BONUSES

Mandatory

  • 13th-month pay (THR) paid one week before the religious holiday

*Info is not binding, may vary, and is provided only as an indication.

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