Employees in Indonesia

Overview by Globlatrade.net:

Working Conditions

Opening Hours
  • Legal Weekly Duration
The legal duration of work is 7 hours a day and 40 hours a week for 6 working days in a week, or 8 hours a day and 40 hours a week for 5 working days in a week.
  • Maximum Duration
After 4 successive hours of work, the employee must be given a rest period of half an hour.
  • Night Hours
If work must be done at night, or if it is dangerous for the health or safety of the workers, the work must not exceed 6 hours a day or 35 hours a week.
Working Rest Day
After a week's work, the employee must be given a day of rest.
Paid Annual Vacation
After a year's work, the worker has 12 days vacation. After six consecutive years' work, the employee has 2 months' long term vacation (to be taken during the 7th and 8th years).
Retirement Age
Child Labor and Minimum Age For Employment
Employing children (under 14) is prohibited.
Employing young workers (aged 14 to 18) is only authorized for daytime work. They are not allowed to work in mines or quarries, or to carry out tasks harmful to their health or safety.
Informal Labor Market
Work in the non-agricultural informal sector represents 78% of non-agricultural jobs ( UNDP 2007/2008 Report)

Return to top

The Cost of Labor


Minimum Wage
The minimum wage is fixed by decree by the different provincial governors. It varies according to the provinces and the districts, and according to the sector concerned. In 2007, the average minimum wage was 673 300 Rp/month.
Average Wage
Average monthly gross earnings in Indonesia is IDR 1,199,187 (USD 118).
Other Forms of Pay
  • Pay For Overtime
1.5 times the normal hourly rate for one hour's overtime, then twice the rate for the following hours.

Social Security Costs

The Areas Covered
Insurance covers the following fields: insurance against industrial accidents (the rate of contributions, between 0.24 and 1.74%, is calculated on the basis of the employee's monthly salary, and is according to the sector of employment), health insurance (6% for a married employee, 3% for a single employee), life insurance (0.30%), pension scheme (5.70%, of which the employee pays 2% and the rest is paid by the employer).

Contributions concerning industrial accident insurance, health insurance and life insurance are paid for entirely by the employer. Unemployment insurance is unknown in Indonesia.

Contributions Paid By the Employer: 7.24% to 11.74%.
Contributions Paid By the Employee: 2%
Competent Organization
Every company which employs more than 10 people, or which pays out a monthly wage bill of over 1 million Rp, must obligatorily take out social insurance for its employees with the public company PT JAMSOSTEK (Jaminan Sosial Tenaga kerja).

Any Comments About This Content? Report It to Us.

Read more See less
Experts Views (1)
Post your content


Post content about Employees in Indonesia and you will be listed here to receive requests for offers.