Employee Benefits in Indonesia

Indonesia Flag

Indonesia has the largest economy in Southeast Asia and the fifth-largest labor force in the world. It is one of the Asian countries that attract most job seekers, mainly because of the great career opportunities it offers.

As a general rule foreign nationals can work in Indonesia, provided that the job they undertake cannot be undertaken by Indonesian nationals. However, as an employee in Indonesia, you will be entitled to a number of benefits, irrespective of your nationality.

Below are some of the basic employee benefits enjoyed by workers in Indonesia:

Working hours

Indonesian regulations outline that the maximum number of hours an employee can work is 40 hours a week. There are two ways of allocating their time; mainly by working seven hours a day, six days per week, or by working eight hours a day, five days per week.

Employers are prohibited to occupy an employee between the hours of 11 pm and 7 am in the case that the employee is female and aged less than 18 years, or pregnant and at risk of harming their own or their unborn child’s health.

Moreover, employers who ask for an employee to work outside the normal working hours should pay overtime salary to the employees, unless the employee’s job is of a certain nature that cannot be limited to regular working hours. These categories of employees are entitled to a higher wage that the normal employees. The maximum overtime performed must not exceed three hours a day and fourteen hours per week.

Entitlement to paid sick leave

Employees in Indonesia are entitled to paid sick leave in the event of injury or illness, provided that their condition is verified in a medical statement. They are also entitled to long-term paid medical leave under specific circumstances.

An employee who is severely sickness is entitled to the payment of their salary as follows:

  • 100% of the salary for the first four months
  • 75% of the salary for the following two months
  • 50% of the salary for an additional four months
  • 25% of the salary for the subsequent months until the employment is ended.

Moreover, female employees are entitled to two days of menstrual leave.

Parental rights

In certain circumstances, employees are entitled to paid family leave. These include:

  • Circumcision of the employee’s child
  • Baptism of the employee’s child
  • Marriage of the employee’s child
  • Death of the employee’s child

Maternity rights

Female employees are entitled to three months’ paid maternity leave. 1.5 months of the maternity leave should be taken before giving birth and the final 1.5 month period after giving birth. An employee who has a miscarriage is entitled to 1.5 months rest period, provided that it is verified by a written medical statement.

Paternity rights

Male employees are entitled to two days’ paid paternity leave in case that their wife gives birth or miscarries.