As an employer, before hiring any employees in Jakarta, it is important to know about employment regulations, such as the minimum wage, benefits, insurances.
This article discusses the important points that you have to take into account prior to recruitment.
1. Minimum Wage
Under the latest DKI Jakarta regulation, the minimum wage of an employee is IDR 4,267,349, with effect from 2020. In 2019, the minimum wage was IDR 3,940,973.
For employers who are not in compliance with this new regulation will be sanctioned by the Indonesian authority with one to four years of imprisonment.
Standard benefits that almost all Indonesian employees enjoy are overtime pay, paid annual leave, and festive holiday leave.
Required insurances for full-time employees are basic healthcare (BPJS Kesehatan) and social security (BPJS Ketenagakerjaan) insurances. Both employees and employers need to make contributions to the BPJS Kesehatan and BPJS Ketenagakerjaan.
For work-related injury insurance (JKK) and non-work-related accidental death insurance (JMT) under the BPJS Ketenagakerjaan, employees do not have to make any contributions.
As per the Indonesian Manpower Law, there are two types of employment contracts in Jakarta and all across Indonesia.
The employment contract serves as a mutual written agreement between an employee and an employer to understand their obligations and protect their rights.
1. Permanent Employment Contract
This type of contract is the one you will mostly encounter in Indonesia. It is applicable for employees who hold permanent positions in a company. The contract includes a 3-month probation period and an employee will only become a permanent employee by law after they have completed the probation period.
2. Temporary Employment Contract
This type of employment contract applies to temporary or seasonal workers. It only lasts for a few months to two years depending on the length of the project.
As for freelancers, the special type of work contract is known as PKWT. However, under this contract, freelancers can only work 21 days the most in a month.
In addition to the employment contract, employee background checks should also be part of the hiring process to ensure the success rate.
Why is employee background check so vital for your business? The reason lies in that some hire can end up fruitless due to misrepresentation or deception from the potential candidates.
Hence, an employee background check can save your business from recruiting any dangerous or unqualified individuals. It can also reduce your company’s liability and avoid unnecessary lawsuits.
These are the thing you need to check and verify while performing an employee background investigation:
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