Indonesia

Currency Indonesian Rupiah
Payroll Frequency Monthly
Capital Jakarta
Date Format dd/mm/yyyy
VAT 10% standard rate

Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Indonesia. TopSource provides Employer of Record services to global companies establishing a presence in Indonesia that do not wish to be burdened with the complications of Indonesia employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Indonesia, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.

Services we offer

Payroll Processing
• Payroll bureau solutions for your Indonesian entity
EOR
• Employment solutions/leasing • Providing documents associated with employment
• Employee on-boarding process and documentation • Monthly salary calculation
• Salary disbursement to employee’s account • Pay slip generation (If applicable)
• Employee statutory benefits administration and deduction
Supplementary services
• Foreign exchange and money transfer services for payment of employees and 3rd parties

Company formation in Indonesia
We can help with company registration, company incorporation along with all the necessary documentation in Indonesia. We can also assist foreign companies to smoothly setup a company anywhere in Indonesia.

Statutory Compliances
We offer high-quality corporate statutory compliance services in Indonesia. Our services meet highest standards and meet all your compliance requirements.

  • Minimum Wage

    There is no official national minimum wage. It is decided individually in each of the provinces.

  • Taxes
    Employer
    0.24% – 1.74% – Work Accident 3.70% – Old Age
    0.30% – Death 2.00% – Pension
    4.00% – Health
    Employee
    2.00% – Old Age 1.00% – Pension
    1.00% – Health 5.00% – Up to 50,000,00
    15.00% – 50M – 250M 25.00% – 250M – 500M
    30.00% – Over 500M
About Employment in Indonesia

Working Hours

Full time employment is considered 40 hours weekly maximum, and 7 hours daily. Overtime is limited to 3 hours daily, 14 hours weekly and subject to employees consent.

Vacation Days

Employees have twelve days of vacation after working in the company for one year. After 6 years, workers may be entitled to up to two months leave.

Maternity/Paternity Leave

Maternity leave: Expecting mothers are entitled to 90 days leave before birth, and 90 days after they have given birth.
Paternity Leave: New fathers are entitled to 2 days leave for the birth of their child.

Sick days

Employees who provide a written statement from a doctor of their illness are entitled to receive – 100% of wages the first 4 months of illness – 75% of wages from 4-8 months of illness – 50% of wages from 8-12 months of illness – 25% of wages from 12th month of illness.

Pension/Social Security

Pension: Employers contribute 2% of workers’ wages, and employees contribute 1% of their salary.
Social Security: Social Security includes contributions to health care, work accidents and death benefit. Employers’ maximum total contribution is 11.74% of workers’ wages. Employees’ contribution equals 4% of their monthly salary. The salary cap for contributions is IDR 7,703,500.

Termination/Severance

There is no legal notice period on termination. Employer can terminate an employee with or without a cause. Also if the employee has been unable to work for over six months due to legal reasons, the employer can terminate them. Employers can also terminate employees if they have been absent without a reason for over five working days.
Standard severance pay is one month of wages for service of less than one year, plus an additional month of wages for every year of service, up to nine months’ salary.
Long Service pay which amounts to two months’ salary after the first three years of service, followed by an additional one month’s salary for every three years of service thereafter, up to a maximum of ten months’ salary for 24 years of service.
There is no official national minimum wage. It is decided individually in each of the provinces.
To learn more, contact us now.

Contact Sales

0203 6915303
contactus@topsource.co.uk

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