Cost Benefits of Payroll Outsourcing in Indonesia

Cost Benefits of Payroll Outsourcing in Indonesia

  • InCorp Editorial Team
  • 4 September 2024
  • 3 minutes reading time

You may have always thought of outsourcing your payroll management as a costly thing, but actually, this is not true at all. In this article, we will talk about the cost benefits of payroll outsourcing in Indonesia.

Payroll in Indonesia

Payroll management is one of the most important aspects of running a business. Without a proper payroll system, it is hard to keep your business going. Your employees need to be paid every month according to their working hours or contracts, and the payments need to be spot-on and on time.

Getting the payments done correctly and paying your employees accordingly is a time-consuming task. As your business grows the work piles up, and you have to be careful not to be overtaken by this progress.

Payroll processing in Indonesia or anywhere else in the world needs accuracy. In Indonesia, the regulations on labour, accounting, auditing and tax reporting are not easy as the rules are changed quite often. Therefore, finding a trustable partner specialised in payroll services in Indonesia is a must at some point.

While most small companies keep their payroll management in-house, the companies that already made the switch to outsourcing their payroll continue to grow. It may come as a surprise, but payroll outsourcing is actually very cost-effective and secure.

It takes a load of work off of your shoulders and saves you a whole lot of time – precious time that you need to keep your business a growing success.

The benefits of outsourcing the payroll

Time-saver

First of all, you will be saving time by putting this time-consuming task in other hands. After all, once we start a business, we know that time is money. Relieving this task from your management team can also improve their productivity.

Plus, there is less chance of a work-pressure that is too high. Avoiding stressed employees and burnouts can save you lots of money in the long run.

Reducing in-house costs

Secondly, outsourcing your payroll is a great saver for in-house costs. Sure, when your company is still starting up, and you only have a handful of employees, you can always handle the payroll working load perfectly well, even manually.

But when your business goes where you want it to – growing bigger and more successful, soon you will notice that the task of payroll needs more complex software, costing money.

It also takes more time, requiring even more money and it needs manpower, costing money again. All together you can start gaining insights into the real cost-benefits of payroll outsourcing.

Security

You are handing the whole payrolling task over to professionals who have the responsibility to do their job flawlessly. That’s what you are paying them for after all.

All the tasks relating to payroll in your company in Indonesia will go smoothly, while you are busy doing other responsibilities that come with running the business.

Reliable Payroll Services in Indonesia

The payroll task is of great importance to your business, and you need to collaborate with a reliable, experienced payroll company.

Cekindo is a trustable company with experienced business consultants and lawyers that have deep knowledge and understanding of the Indonesian and local law regulations. Being present on the Indonesian market for almost a decade, we will ensure you that your payroll is in the right hands.

Contact us to get more information.

Verified by

Heldy Narua

Senior External Finance Manager at InCorp Indonesia

Heldy, with seven years of experience, leads InCorp Indonesia's External Finance team, specializing in reliable Payroll Outsourcing and Finance Management solutions. She has an Accounting and Business Administration degree from Sampoerna University and Oregon State University. She is certified with Brevet AB, highlighting her technical expertise and commitment to client success.

Frequently Asked Questions

    As a professional executive search agent, InCorp helps promote job vacancies, screen, and shortlist applicants, conduct pre-interviews, and arrange final interviews with applicants. This can also be topped up with an employee background check.

    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.

    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.

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