Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Indonesia if the relationship looks like employment. |
| Employee via EOR | $73,308 โ $74,208 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Indonesia contractor risk: Contractors are common but outsourcing and misclassification are tightly regulated under the Job Creation Law. Moderate to high risk for long-term dependent workers. Not legal advice.
Want to hire this person in Indonesia?
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked โunverifiedโ needs checking with the provider or a local adviser before you rely on it.