Indonesia

• New Year's Day
• Chinese Lunar New Year's Day
• Ascension of the Prophet Muhammad
• Bali Hindu New Year
• Bali Hindu New Year Holiday
• Good Friday
• Lebaran Holiday
• Hari Raya Idul Fitri
• Lebaran Holidays
• Labour Day
• Pancasila Day
• Waisak Day Holiday
• Waisak Day
• Idul Adha
• Islamic New Year
• Independence Day
• Prophet Muhammad's Birthday
• Christmas Day
• Christmas Holiday

Working Hours

The standard work week in Indonesia is 40 hours a week. The hours can be distributed seven hours a day in six working days or eight hours for five working days. Overtime depends on the job position and is a maximum of 14 hours a week and three hours per day.

Minimum Wage

The minimum wage depends on the province.

For example, the 2025 provincial general minimum wage rate is IDR 5,400,000 per month in the Jakarta Special Capital Region.

Employee Tax

Annual income	Tax rate
Up to IDR 60 million	5%
IDR 60 million - 250 million	15%
IDR 250 million - 500 million	25%
IDR 500 million - 5 billion	30%
More than IDR 5 billion	35%
Old age savings contribution	2%
Healthcare contribution	1%
Pension contribution	1%

Bonuses

In Indonesia, a Tunjangan Hari Raya (THR) bonus, with an additional compulsory salary, is paid to an employee for working at least one consecutive month.

For employees who have worked more than a month but less than 12 months, the bonus is calculated proportionally to their length of service.

Employment contracts in Indonesia are either indefinite or fixed-term contracts. Indefinite contracts only require a letter of employment, but fixed-term contracts must be in writing and in the Indonesian language.

Fixed-term contracts are prepared for a specific service, temporary work, or work related to a new product/activity and are valid for five years maximum.

The law permits a maximum three-month probationary period for permanent employees. Fixed-term contracts cannot include a probationary period.

Annual Leave

Leave entitlement is 12 working days for 12 months of consecutive service.  Other leave is permitted in certain circumstances.

Sick Leave

Sick leave is with evidence of a medical certificate from a medical professional. The calculation of pay is according to the duration of the sick leave.

Parental Leave

• Maternity leave: employees in Indonesia are entitled to at least three months of maternity leave after childbirth. An extra 1.5 months' leave can be taken in the case of a miscarriage.
• Paternity leave: male employees are entitled to two days' paid leave in the event that their wife gives birth or has a miscarriage.

Paternity leave may be extended for three days, or any period based on agreement with the employer.

Termination Process

The Indonesian Employment Law stipulates that an employee must receive three warning letters, each lasting six months before an Industrial Relations Court can issue a termination order for dismissal. With a serious offense, one warning letter is sufficient to make an application for the order. A termination order is not necessary, if the parties mutually agree on the termination.

Severance Pay

An employee's severance pay depends on the cause of the termination. Fixed-term employees are entitled to one month's salary for each year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.