🇮🇩 Hire in Indonesia: cost, rules and best EOR options
Large, young population with a growing developer base and competitive labour costs. Employer on-costs are moderate; THR and severance add predictable obligations.
- Employer on-costs: 10.2–11.7% of gross salary (on a $60,000 salary, about $66,120–$67,020 total)
- EOR onboarding: not verified; own entity: not verified
- Probation: Maximum 3 months for permanent (PKWTT) contracts; not allowed for fixed-term (PKWT).
- Currency: Indonesian rupiah (IDR)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Indonesia
Employer on-costs run roughly 10.2–11.7% on top of gross salary. Derived: employer BPJS contributions of 0.24%-4% per scheme (PwC) summed from secondary-source rates: JHT 3.7% + JP 2% + JKK 0.24-1.74% + JKM 0.3% + BPJS Kesehatan 4% = 10.24%-11.74%. JP is capped at about IDR 11.09m (Mar 2026) and health at IDR 12m a month, so effective percentage falls for high earners. Excludes the JKP job-loss premium (funded by government/employer; rate unclear), the mandatory THR holiday allowance (one month's pay, ~8.3%), leave and severance.
| Contribution | Rate | Notes |
|---|---|---|
| BPJS Ketenagakerjaan - JHT (old-age savings) | 3.7% | Employee 2%. |
| BPJS Ketenagakerjaan - JP (pension) | 2% | Employee 1%; wage cap about IDR 11,086,300 from March 2026 per secondary source. |
| BPJS - JKK (work accident) | 0.24%-1.74% | By risk class. PwC gives the overall range as 0.24%-4%. |
| BPJS - JKM (death) | 0.30% | |
| BPJS Kesehatan (health) | 4% (employee 1%) | Salary ceiling IDR 12,000,000. |
| JKP (job-loss security) | 0.36% total (secondary), no employee share | Employer vs government split not verified. |
Employer withholds the employee BPJS shares (JHT 2%, JP 1%, health 1%) and PPh 21 income tax using the TER monthly method (not verified in detail).
Mandatory benefits
- THR religious holiday allowance of one month's pay
- BPJS Ketenagakerjaan and Kesehatan coverage
- 12 working days' annual leave after 12 months
- Severance, service and compensation payments on termination (PP 35/2021)
Employment rules at a glance
| Payroll | Monthly; THR paid at least 7 days before the religious holiday (general knowledge) |
|---|---|
| Probation | Maximum 3 months for permanent (PKWTT) contracts; not allowed for fixed-term (PKWT). |
| Notice & severance | Termination requires notice and compensation under PP 35/2021: severance pay up to 9 months' wages by years of service, long-service pay up to 10 months, plus a rights-compensation component; multipliers vary by reason of termination. Not verified in detail. |
| Working time | 40 hours per week (6 days x 7 hours or 5 days x 8 hours). Overtime has multiples under government regulation. |
| Paid leave | 12 working days of annual leave after 12 months of service, plus national holidays and collective leave days (general knowledge). |
| Minimum wage | No single national minimum wage; provincial (UMP) and regency/city (UMK) minimums apply from 1 January 2026, e.g. DKI Jakarta IDR 5,729,876 and West Java IDR 2,317,601 (secondary source) - the UMK, where set, is the binding floor. |
Termination
Termination must be based on listed grounds; many exits go through bipartite negotiation or industrial relations court. PKWT contracts are capped (up to 5 years including extensions).
Employee or contractor in Indonesia?
Contractors are common but outsourcing and misclassification are tightly regulated under the Job Creation Law. Moderate to high risk for long-term dependent workers.
Compare contractor vs employee cost →
Hiring through an EOR in Indonesia
A foreign company needs a PT PMA (foreign-owned limited company) or EOR to employ locally. EORs handle BPJS, PPh 21 and THR. Timelines not verified.
Typical onboarding: EOR not verified; own entity not verified. WIB (Jakarta) is UTC+7; WITA UTC+8 and WIT UTC+9; no DST. 11-12 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Indonesia
Related
FAQ
What employer contributions does Indonesia require?
BPJS schemes: JHT 3.7%, JP 2%, JKK 0.24-1.74%, JKM 0.3% and health 4%, roughly 10-12% of salary subject to caps.
Is the holiday allowance mandatory?
Yes, THR equals one month's pay for staff with 12+ months' service, prorated for shorter tenure.
Is there a national minimum wage?
No; provincial and city minimums apply and the higher local figure binds.
Do I need a local entity?
A PT PMA or an EOR is required for direct employment.