Indonesia

Last Update by Julie, 20 Feb 2025

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Exchange Rate

19 Apr 2025

 

Cost of Living

Indicative value for a working adult in a city: Jakarta

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (IDR)
McDonalds Set Meal 55,000
Monthly Train and Bus Tickets 200,000
3 Bedrooms Rental (City Center) 20,042,255
3 Bedrooms Rental (Outskirt) 10,220,620

Current Inflation Rate

2.4%

Wage

Minimum Wages

  • Minimum wage: varies by province or city
    Jakarta: IDR 4.64M per month, IDR 29,000 per hour

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (IDR)
Entry-Level
Fresh Graduate
4.64 million
Mid-Level
5 Years
10 million
Experienced & Managerial Level
10 Years
18 million
Specialized & Senior-Level
15 Years
50 million

Annual Salary Growth

5.8%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Death/ Life Insurance (JKM) 0.3% - All staff
Work Accident Insurance (JKK) 0.24% – 1.74% - All staff.
Varies based on the level of risk in the workplace
Old Age Benefit (JHT) 3.7% 2% All staff
Pension (JP) 2%,
On salary up to IDR 10,042,300 per month
Maximum contribution capped IDR 200,847
1%
On salary up to IDR 10,042,300 per month
All staff
Health Insurance (BPJS) 4%
Capped at IDR 480,000
1%
Capped at IDR 120,000 per month
All staff
Mandatory13th Month Salary (THR) 1 month salary - All staff

Income Tax

Residents

  • Tax period: 1 Jan - 31 Dec
    Tax filing start date: 1 Jan of the following year
    Tax filing due date: 31 Mar of following year

Country Level

Taxable Income Rate
60 million 5%
60 million - 250 million 15%
250 million - 500 million 25%
500 million - 5 billion 30%
and 5 billion 35%

Non-residents

  • Flat rate of 20%

Working Hours

Statutory

40 Hours
8 hours a day, 5 days a week

Overtime

  • Monday - Friday, and Saturday up to 13:00
    - First hour - 1.5 x 1 hour pay rate: 1.5 x 1/173 x monthly salary
    - Next hour - 2 x 1 hour pay rate: 2 x 1/173 x monthly salary
  • Overtime during Saturday after 13:00, Sunday and Public Holidays
    - First 5 hours: 2 x 1 hour pay rate: 5 hours x 2 x 1/173 x monthly salary
    - 6th hour: 3 x 1 hour pay rate: 1 hour x 3 x 1/173 x monthly salary
    - 7th hour - 8th hour: 4 x 1 hour pay rate: 1 hour x 4 x 1/173 x monthly salary

Employment Contract

Permanent (PKWTT)

Contract Format

Must in Indonesian.
A copy must be registered with the Ministry of Manpower.
Bilingual contracts (Indonesian and English or other mutually understood languages) are permitted for expatriate contracts.

Payroll Currency

IDR

Probation

Up to 3 months in writing and cannot be extended or repeated

Termination

Refer to the employment contract signed

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation 30 days 7 days 7 days
Notice Period - Regular 30 days 14 days 14 days
Severance Pay Not Applicable Monthly Wage x Number of Entitled Months
Less than 1 year: 1 month of wages
1 to less than 2 years: 2 months of wages
2 to less than 3 years: 3 months of wages
3 to less than 4 years: 4 months of wages
4 to less than 5 years: 5 months of wages
5 to less than 6 years: 6 months of wages
6 to less than 7 years: 7 months of wages
7 to less than 8 years: 8 months of wages
8 years or more: 9 months of wages
Monthly Wage x Number of Entitled Months
Less than 1 year: 1 month of wages
1 to less than 2 years: 2 months of wages
2 to less than 3 years: 3 months of wages
3 to less than 4 years: 4 months of wages
4 to less than 5 years: 5 months of wages
5 to less than 6 years: 6 months of wages
6 to less than 7 years: 7 months of wages
7 to less than 8 years: 8 months of wages
8 years or more: 9 months of wages

Public Holiday

13 days

Country Level

Date Name
01 Jan New Year's Day
27 Jan Muhammad's Ascension to Heaven
28 Jan - 29 Jan Chinese New Year 2576 Kongzili
28 Mar - 29 Mar Day of Silence
31 Mar - 04 Apr Eid al-Fitr
18 Apr Good Friday
20 Apr Easter Day
01 May Labor Day
12 May - 13 May Vesak Day
29 May - 30 May Feast of the Ascension of Jesus Christ
01 Jun Pancasila Day
06 Jun Eid al-Adha
27 Jun Islamic New Year's Day
17 Aug Proclamation Day
05 Sep Birth of the Prophet
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave (Cuti Tahunan) 12 working days All staff after 1 year service
Long Service Leave (Cuti Besar) Up to 1 month Applicable to all staff after 6 years of continuous service, usually in the 7th and 8th year
Sick Leave (Cuti Sakit) Up to 12 months All staff
Menstrual Leave (Cuti Haid) 2 days per month All women without prior notice
Maternity Leave (Cuti Melahirkan) 3 months
1.5 months before the birth, 1.5 months after
1.5 months in the event of a miscarriage
All expectant mothers
Paternity Leave (Cuti Paternal) 2 days For father, to take after a birth or a miscarriage
Marriage Leave (Cuti Nikah) 3 days
2 days
All general staff
All staff members with children getting married
Baptize/Circumcision/Religious Leave (Cuti Keagamaan) 2 days per event All staff
Compassionate/Bereavement Leave (Cuti Kematian) 2 days All staff

Reference

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