The Hardest Market ยท Indonesia
Indonesia's HR data
The rules and costs of employing people in Indonesia (Jakarta), from official sources, in English and Japanese.
25.6%women in management (2024, ILO)
1.07รemployer's total cost on Rp25,000,000 a month, as a multiple of salary
17public holidays (2026)
Employment rules
| Statutory annual leave | 12 working days after 12 months |
|---|---|
| Public holidays (2026) | 17 days |
| Notice of dismissal | 14 working days' written notice of termination |
| Severance required by law | Up to 9 months + up to 10 months long-service pay |
| Typical negotiated exit | No official benchmark |
| Probation | Max 3 months, permanent contracts only |
| Working hours | 40/week; OT max 4 h/day, 18 h/week |
| How hard is dismissal? | Hard: statutory grounds, formula pay, court if contested |
Employer contributions
| Old-age savings (JHT) | 3.7% |
|---|---|
| Pension (JP) | 2% |
| Work accident insurance (JKK) | 0.24% |
| Death benefit insurance (JKM) | 0.3% |
| Health insurance (BPJS Kesehatan) | 4% |
Employee contributions
| Old-age savings (JHT) | 2% |
|---|---|
| Pension (JP) | 1% |
| Health insurance (BPJS Kesehatan) | 1% |
Take-home pay and employer cost by monthly salary
| Monthly salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| Rp12,000,000 | Rp469,965 | Rp579,225 | Rp10,950,810 | Rp13,208,730 |
| Rp25,000,000 | Rp729,965 | Rp2,500,755 | Rp21,769,280 | Rp26,759,930 |
| Rp45,000,000 | Rp1,129,965 | Rp7,344,926 | Rp36,525,110 | Rp47,607,930 |
| Rp80,000,000 | Rp1,829,965 | Rp17,593,944 | Rp60,576,091 | Rp84,091,930 |
A single permanent employee (pegawai tetap) in Jakarta, no dependants (PTKP status TK/0), Indonesian national and tax resident, salary paid evenly as 12 monthly payments with no bonus and no THR, standard deductions only. Registered with BPJS Kesehatan and BPJS Ketenagakerjaan (JHT, JP, JKK, JKM) at an office (very-low-risk, 0.24%) JKK rate. Income tax is the annual PPh 21 liability for calendar 2026 under the UU HPP rates, computed with the PMK 168/2023 year-end method (monthly TER withholding sums to the same annual amount). Contribution caps as of 2026 (JP cap raised 1 March 2026).