Indonesia

Last updated on December 5th, 2024

Country Overview

Payroll cycle 

Monthly, 13th salary paid on Tunjangan Hari Raya which is prorated for employees who have not completed a year of service.  

Employer taxes  

10.24% - 11.74% 

Minimum wage  

IDR 1,958,169 to IDR 5,067,381 per month based on the local government regulations.

Working hours  

8 hours a day, 5 days a week or 7 hours a day, 6 days a week 

Latest HR Statutory Updates

DECEMBER 2024

  • National Minimum Wage Increase of 6.5 Percent

NOVEMBER 2024

  • Public Holiday 2025

AUGUST 2024

  • Clarification on Tax Treatment of Benefits and Enjoyments

JULY 2024

  • Use of Population Identification Number (an Update)

JUNE 2024

  • Revision in Public Housing Savings Program (Tapera)

  • The Law on the Welfare of Mothers and Children in the First Thousand Days of Life Phase is Passed

MARCH 2024

  • Religious Holiday Allowance (THR) to be paid in full

FEBRUARY 2024

  • Change in maximum wage capping for pension insurance program

JANUARY 2024

  • Reporting changes (Forms) for New Simplified PPh 21

  • PPh 21 Calculation with Average Effective Rate (TER) Revised

  • Provisions for Effective Tariff Cuts for PPh 21 in PMK 168/2023

NOVEMBER 2023

  • Change in Implementation of Work Accident Insurance and Death Benefits Program

JULY 2023

  • Exemption Limits of Benefit-in-kind

JUNE 2023

  • Government Issues Changes to 2023 National Holidays and Joint Leave

MAY 2023

  • Tax facility to State capital city (Nusantra)

  • Introduction of Minimum wage capping for BPJS Manpower

MARCH 2023

  • Change in Maximum Wage Capping for Pension Insurance Program

JANUARY 2023

  • e-SPT Period Income Tax Articles 21-26 version update 2.5.0.0.

DECEMBER 2022

  • Government Adjusts Income Tax Rules for in Kind and/or Enjoyment and Others

MARCH 2022

  • BPJS Ketenagakerjaan - Increase in Base Salary Capping for the Year 2022

NOVEMBER 2021

  • Changes in the Income Tax Rates

  • Treatment of benefits-in-kind under the Tax Harmonization Law

  • Tax ID Number under the HPP Law

JULY 2021

  • Extension of COVID-19 incentives July 2021 – December 2021

MARCH 2021

  • Government Regulation Number 35 Year 2021 concerning PKWT, Transfer of Power, Working Time, Work Relationships and Rest Time, and Layoffs

  • BPJS Ketenagakerjaan – Increase in Base Salary Capping for the Year 2021(Revised)

FEBRUARY 2021

  • BPJS Ketenagakerjaan – Increase in Base Salary Capping for the Year 2021

  • Extension of COVID-19 incentives

JANUARY 2021

  • Law No. 11/2020 concerning Job Creation (“Omnibus Law”)

OCTOBER 2020

  • Indonesia 2021 Public Holidays

SEPTEMBER 2020

  • PP 49 / 2020 related to adjustment for BPJS Manpower contribution due to pandemic COVID-19

JULY 2020

  • Gazette Notification for Draft Code on Wages(central) Rules, 2020

  • Expansion of tax incentives in response to COVID-19 ‒ an update

MAY 2020

  • Expansion of tax incentives in response to COVID-19

APRIL 2020

  • Tax incentives in relation to COVID-19

FEBRUARY 2020

  • BPJS Ketenagakerjaan – Increase in Base Salary Capping for the Year 2020

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