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Looking to expand your business into Indonesia?

If you are looking for an efficient way to grow your employees fast and professionally in your field? Interloop’s Employer of Record (EOR) is the most flexible, cost-effective method for both your business and employees to grow.

Capital City

Jakarta

Currencies

Indonesian rupiah
(Rp, IDR)

Population size

267,670,543
(est. 2018)

Languages spoken

Indonesian

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We can make it simple.

Employing in Indonesia

Indonesia’s Labor Law of 2003 is the principal labor regulation that defines provisions for employee protections and workers’ rights at the federal level which are applicable to Indonesia’s workforce of 4.2 million. Employees in Indonesia enjoy protections against discrimination based on age, religion, gender expression, and race. Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Indonesia. Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Indonesia.

Working hours and overtime

The Indonesia work hours is 7 hours per day and 40 hours per week  (for a 6-day work per week) or 8 hours per day and 40 hours per week  (for a 5-day work per week).

The maximum hours of overtime that employees can work are 3 hours per day, and 14 hours per week.The Overtime Pay rate shall be as follows:

Overtime pay calculation during a normal working week:

  • First, calculate the hourly rate = 1/173 x 1 monthly salary
  • The first hour of overtime = 1.5 x (hourly rate)
  • The second hour of overtime = 2 x (hourly rate)

Note: Employees which are not Entitled to Overtime Compensation. Employees that hold a certain higher-level position, who can be considered as thinkers, planners, implementers and are able to control the course of the company and whose time cannot be restricted by working hours as set by the company are not entitle to overtime payment.

Public Holidays​

Employees are entitled to 15 public holidays off annually and must be compensated if required to work on a holiday. Employees who’re expected to a work on a public holiday will have their compensation structured as follows:

  • 1st – 7th hour: 200% hourly wages
  • 8th hour: 300% hourly wages
  • 9th & 10th hour: 400% hourly wages

Sick Leave

Indonesian labor laws offer essentially unlimited sick leave that extends until an employee is fully recovered or the term of the employment contract elapses. Over the course of an employee’s illness, they’re entitled to 100% of their wages for the first four months, 50% of their wages for the next four months, and 25% of their normal wages until the employee recovers.

Maternity leave

Female employees are entitled to three months of paid maternity leave, starting six weeks before delivery.

Parental leave

Fathers can take two paid days off work after their partner’s delivery.

Other leave

  • Bereavement leave: employees are entitled to two days of paid leave for the death of any 1st or 2nd-degree relative or one day in the event of a household member’s death.
  • Religious observance: parents can request two days of paid leave to get their children circumcised or baptized.
  • Marriage leave: Employees can take three days off work to attend to their marriage rites, or two, if the employee’s child is getting married.
  • Adoption: adoptive parents can exercise the same leave entitlements as natural parents, i.e., three months paid leave for female employees and two days of paid leave for the father.

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Employment termination

Indonesian labor law is unique in that it places the onus on employers to go the extra mile to avoid terminating an employee by negotiating to offer better working conditions, coaching, etc.

That aside, employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, work-related offenses, sustained illness over the course of 12 months, or business contingencies like redundancy or insolvency.

Severance pay

Employees are entitled to severance pay that’s proportional to their tenure with an employer as defined below:

  • 1 months wages: Up to 1 year of employment
  • 2 months wages: Up to 1 year, but less than 2 years of employment
  • 3 months wages: Up to 2 years, but less than 3 years of employment
  • 4 months wages: Up to 3 years, but less than 4 years of employment
  • 5 months wages: Up to 4 years, but less than 5 years of employment
  • 6 months wages: Up to 5 years, but less than 6 years of employment
  • 7 months wages: Up to 6 years, but less than 7 years of employment
  • 8 months wages: Up to 7 years, but less than 8 years of employment
  • 9 months wages: 8 or more years of employment

Notice period

There is no notice stipulated notice period but employers are generally expected to provide 30-days advance notice before terminating an employee.

Probation periods

Probationary periods can only be set for employees on indefinite-term contracts and cannot exceed three months.

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We can make it simple.

Why Interloop?

Global Hiring in Few Minutes

Compliantly set up your new hires to work faster than ever.

Create an airtight contract according to local laws, send it for signing and complete onboarding; all within a simple, self-serve platform.

One-click Global Payroll

Say goodbye to manual payment for contractors and employees, complicated local taxes and troublesome payrolls!

Now you can pay your entire team every month with a single bulk payment, and Globelise will make

One Platform for All

Imagine onboarding, contracts payroll, benefits and built-in compliance at your fingertips.

Contact Our Professional Team

We can make it simple.

Global expansion is not that easy
Unless you go global with Interloop!

24x7

Support

121+

Currencies

141+

Countries

101+

Legal Experts

About Us

We Are Interloop

Here at INTERLOOP, we provide all the basic tools required to expand into and grow in the region. Our solutions range from providing simple company incorporation, key staffing and work force management, digital marketing solutions, tax and accounting solutions, and in-depth consultation on customized market entry analysis.

We also provide our expertise in more complex areas including formulating Go-To-Market strategies, applying for relevant government schemes and licenses, M&A advisory or business matching services, and English legal document or contract preparation, review, and negotiation.

We make global hiring a stroll in the park

Are you looking to expand your business into Asia? If you are looking for an efficient way to grow your employees fast and professionally in your field?

Interloop’s Employer of Record (EOR) is the most flexible, cost-effective method for both your business and employees to grow.

When you are using Interloop’s EOR & secondment services, we become the legal employer of your staff and second them back to you under a service agreement. Our EOR and secondment contract allows you to remove all the unnecessary costs and time associated with setting up and maintaining a legal entity, investing minimum capital, annual company administration, etc. – allowing you to expand into a new country in as little as 1 day.

Contact Our Professional Team

We can make it simple.

Interloop professional services

Your people are your greatest asset and the right fit can make a massive impact on your business. We believe that borders shouldn’t hinder you to hiring the greatest talent for a specific role. We know all the struggles in international hiring and we’re here with solutions.

Recruit Talent

Our recruitment service will take care of the entire recruiting process: from recruitment planning, to searching and screening, to evaluation and control.

Onboard Contractors

We will handle everything from hiring, onboarding, compliance and payroll for your contractors, so your business can take advantage of the abundance of local, skilled contractors to grow your company on a global scale.

Run Global Payroll

Handling payroll in multiple jurisdictions can be time consuming, expensive and an ongoing administrative task. We will handle the payments for your employees and contractors in the country of your choice in a dependable and timely fashion.

Contact Our Professional Team

We can make it simple.

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Thailand Office
Singapore Office

Get in touch

ThailanD

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

Thailand Office
Singapore Office

Get in touch

ThailanD

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

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We look forward to growing with you
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