Indonesia offers Southeast Asia's largest workforce and a fast-growing digital economy, with a mandatory religious holiday bonus. All-in employer cost runs around 1.11x the gross salary, before severance. Here is what to know before your first Indonesian hire.
Employment runs under the Manpower Law as amended by the Omnibus Law, with mandatory enrolment in the BPJS employment and health schemes and a statutory religious holiday allowance (THR) of one month's pay.
Employer BPJS contributions add roughly 10-11% on top of salary across the employment and health schemes, with severance obligations layered on top.
Pension and health contributions apply up to monthly wage ceilings, so the effective percentage falls for higher salaries.
Employees pay income tax (PPh 21) on a progressive scale plus their BPJS share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Indonesian employment contract, payroll, BPJS, and the THR, handled. One invoice, flat $499 per month.