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Indonesia – Employment Terms and Conditions

Working Hours in Indonesia

The standard working hours in Indonesia are 8 hours per day and 40 hours per week. Any work beyond this must be compensated as overtime. However, many employees work longer hours due to collective agreements or individual contracts.

Employment Rights and Benefits in Indonesia

Paid Vacation and Sick Leave

Employees in Indonesia are entitled to a minimum of 12 days of paid vacation per year. In addition, workers are entitled to a varying amount of sick leave depending on the duration of their employment. For example, employees are entitled to up to 12 days of paid sick leave per year after a certain period of employment.

Social Security Benefits

All employees in Indonesia must be registered with the social security system. Employers must contribute to the system on behalf of their employees, while employees must also make contributions. This contribution provides employees with a range of benefits, including healthcare, maternity leave, and a pension.

Maternity and Paternity Leave


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Expectant mothers in Indonesia are entitled to 3 months of maternity leave, paid at their full salary. Fathers are entitled to 2 days of paternity leave, paid at their full salary.

Severance Pay

If an employee is terminated without just cause, they are entitled to receive severance pay. The amount of severance pay depends on the length of service with the employer. For example, employees with less than 1 year of service are entitled to 1 month’s pay, while those with more than 2 years of service are entitled to 2 months pay.

Pensions

All employees in Indonesia are entitled to a pension through the social security system. Both employers and employees must make contributions to the system, which is managed by the government. The pension is calculated based on the number of years of service and the average salary earned during the last 10 years of service.

Types of Pensions for Expats in Indonesia

Expats who are working in Indonesia may be eligible for a pension through the social security system. However, they must meet certain requirements. Firstly, they must have legal residency in Indonesia and be contributing to the system. Secondly, they must have worked in Indonesia for at least 5 years.

Expats who do not meet these requirements may still be able to receive a pension through a private pension plan. These plans are not regulated by the government and are offered by a range of private companies.

Retirement Age in Indonesia

The retirement age in Indonesia is currently 56 years old for women and 58 years old for men. However, there are some exceptions to this rule. For example, workers in certain industries may be able to retire earlier or later.

In conclusion, workers in Indonesia are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. All employees must be registered with the social security system, which provides a pension. Expats may be eligible for this pension if they meet certain requirements, or they may be able to receive a private pension plan. The retirement age in Indonesia varies depending on gender and industry. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.


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