Legal employment for your global team
Your global team, locally employed
Global work management
Manage all admin tasks from one place
Premium benefits for your global team
Relocate your team anywhere
Localised employment contracts
Indonesia is one of Southeast Asia’s largest economies, offering access to a young, diverse, and dynamic workforce. With competitive wages, rapid digital growth, and a government focused on attracting foreign investment, Indonesia is a strategic destination for companies looking to expand their teams in the Asia-Pacific region.
Indonesia has an evolving legal framework for employment and hiring, with regional variations in minimum wage, tax structures, and employment practices. Employers must stay updated on both national labour laws and local regulations in each province or district where they operate.
Get details on Indonesia’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in Indonesia must be made in writing and can be either fixed-term (PKWT) or indefinite (PKWTT). All contracts should clearly define employment conditions, responsibilities, remuneration, and termination terms in line with Indonesian labour laws.
Notice periods: Usually 30 days, depending on contract type and reason for termination.
Termination of employment: Requires valid cause and procedures such as notice, severance, and/or mutual agreement.
Want to learn more about employment contracts in Indonesia? Get our full template now!
Employers in Indonesia are legally required to offer several mandatory benefits. These include contributions to the national social security and healthcare systems. Many employers also offer additional perks to retain top talent in a competitive market.
Mandatory benefits: Social security (BPJS) (health insurance, employment benefits), overtime pay.
Common perks: Transportation allowance, meal allowance, housing allowance, performance bonuses, health and wellness programs, professional development, flexible working hours.
Leave policies: Annual leave, sick leave, maternity leave, paternity leave, special leave.
Want to learn more about all the employee benefits available in Indonesia?
Salaries in Indonesia must comply with regional minimum wage laws. Employers are required to process payroll monthly and submit necessary tax and social contributions by set deadlines.
Salary payment deadline: Last working day of the month
Taxes and contributions payment deadline: By the 15th of the following month
Payroll declarations deadline: 10th of the following month.
Payroll currency: Indonesian Rupiah (IDR)
Indonesia’s employment laws are outlined in the Labour Law No. 13/2003 and the Job Creation Law (Omnibus Law). These regulate working hours, leave, benefits, termination, and employer responsibilities.
Minimum wage: Varies by region (e.g. IDR 5,396,760 in Jakarta, West Java, at IDR 2,191,232, and East Java at IDR 2,305,984 for 2025).
Probation period: Up to 3 months
Using EOR services in Indonesia allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Indonesia provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Indonesia but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Indonesia’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Indonesia with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Whether you're paying full-time employees or gig workers, we make it easy, efficient, and people-first in 85+ countries, with 70% less admin work.
Step 1
Step 2
Freelancers and gig workers in Indonesia are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
