What non-wage compensation do employers in Indonesia usually provide their employees with?

  • InCorp Editorial Team
  • 17 June 2025
  • 1 minutes reading time

Besides the agreed-upon salary, employers typically offer other compensations such as overtime pay, paid annual leave, festive holiday leave, and insurance.

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Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    The standard regulations state:

    • Minimum salary of IDR 3.9 mil for the Jakarta region
    • 12-day annual leave (minimum)
    • BPJS coverage
    • Holiday allowance

    According to Indonesia’s Manpower Law, employers can hire Indonesian talents under temporary or permanent employment.

    In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment.

    As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee.

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