Home Blog Everything You Need to Know about Hiring a Worker in Semarang Human Resource | Recruitment | Semarang Everything You Need to Know about Hiring a Worker in Semarang InCorp Editorial Team 30 April 2019 4 minutes reading time Table of Contents Recruitment in Semarang: Employment Contract Minimum Wage in Semarang Overtime Pay in Semarang How Cekindo can Help with Recruitment in Semarang Semarang has surprised many people, particularly foreigners in more ways than one with its promising, unassuming charm. For over centuries, Semarang has been the center of attention of trade in Indonesia and an appealing destination for people from all over the world with different backgrounds. There is a wide variety of opportunities the city has, thanks to the government and its people’s new resilience in building initiatives to make the city a heaven for investments. The favourable demographics of working population, low costs, increased foreign investments and local support from different authorities have welcomed the participation from a broad range of stakeholders. In the last couple of years, many foreign companies have expanded their businesses to Semarang with an increased demand for hiring. If you’re one of those who is ready to do so, read on and we will tell you everything you need to know about hiring a worker in Semarang. Recruitment in Semarang: Employment Contract An employment contract in Semarang is crucial for both employees and employers. It is a mutually agreed document that determines the responsibilities, duties and rights of both parties. Generally, employment contracts can vary in Semarang, depending on the employee’s job functions and the type of employee the company hires. Under the Manpower Law of Indonesia, two main types of employment contracts generally used in Semarang are Permanent Employment Contract and Temporary Employment Contract. Permanent Employment Contract Most people recognise this as the most common type of employment contract in Semarang. A permanent employment contract basically often offers employees job positions that are permanent. There is a consensus of fixed amount salary or wage paid by hourly, weekly, or monthly. A 3-month probation period is often seen under this contract as well. After the probation period, the employee will become an official permanent or full-time employee with employment law protection. Once an employee is confirmed as a permanent worker, the termination process of an employee in Semarang will become more complex under the employment law, as compared to workers with temporary status. Temporary Employment Contract A temporary employment contract is used for workers that are not permanent employees of an organisation. These workers have a contract with their employers that only lasts for a fixed period of time – normally no more than 2 years. This type of contract is extendable for only once for a 12-month period. For short-term or seasonal projects that usually last less than three years, a temporary employment contract is more practical and used by employers especially with projects of new product development and experiments. Under a temporary employment contract, if the termination of an employee is inevitable, the complications to terminate an employee are significantly much fewer. Minimum Wage in Semarang There are regional differences for the minimum wage in Semarang according to the variation of development and cost of living in the city. As of 2019, the minimum wage differences in major areas of Semarang are listed below: Kota Semarang: IDR 2,498,587.53 Kabupaten Demak: IDR 2,240,000.00 Kabupaten Kendal: IDR 2,084,393.48 Kabupaten Semarang: IDR 2,055,000.00 Kota Salatiga: IDR 1,875,325.24 Kabupaten Grobogan: IDR 1,685,500.00 Overtime Pay in Semarang Similar to many other countries around the world, the minimum wage calculation in Semarang is based on the 40-hour work week. A 40-hour work week can be regarded in two ways: 5 work days a week: 8 hours/day 6 work days a week: 7 hours/day (more or less) Any working hours that occur during the public holidays are considered as overtime under the labour law and the calculation is more complex. It is best to consult a payroll expert to ensure compliance. Religious Holiday Allowance (Tunjangan Hari Raya) Abbreviated as THR, the religious holiday allowance is an extra income that is separated from an employee’s salaries and/or wages. THR is given from employers to employees before religious holidays such as Eid al-Fitr, Chinese New Year, Christmas Day, Waisak, or Day of Silence. How Cekindo can Help with Recruitment in Semarang One thing you need to take note is that it is normal to see changes in regulations related to employment and recruitment in Semarang. Thus, it is recommended to seek advice from Cekindo. Talk to our legal consultants first before employing a worker in Semarang. Our team can help you with recruitment process, legal check of employment contract in Semarang, as well as personal background check on employees. Read Full Bio Verified by 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 What non-wage compensation do employers in Indonesia usually provide their employees with? Besides the agreed-upon salary, employers typically offer other compensations such as overtime pay, paid annual leave, festive holiday leave, and insurance. How many employment and hiring options exist in Indonesia? According to Indonesia’s Manpower Law, employers can hire Indonesian talents under temporary or permanent employment. What are the obligations related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field. What are the standard regulations regarding employment in Indonesia? The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance Get in touch with us. 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