Payroll taxes in
Indonesia.

The tax office of Indonesia is called The Directorate General of Taxes (Indonesian: Direktorat Jenderal Pajak). It is also known as the DJP.

There is no employer payroll tax contribution (as seen in the US) in Indonesia. Employers are responsible for paying some amount toward social security, normally between 10.24% – 11.74% of employee salary.

• Employer social security contributions: 31.42% of employee salary
• Corporate tax rate of 20.6%

For employees, Indonesia has a progressive payroll tax system with tax rates between 5% for the lowest earners to 35% for the highest earners in Indonesia. See the tax brackets below:

• 0 to 60 million IDR → 5% 
• 60 to 250 million IDR → 15%
• 250 to 500 million IDR → 25% 
• 500 million to 5 billion IDR → 30% 
• Above 5 billion IDR → 35% 

For employers in Indonesia, tax includes the following:

• Social security (between 10.24% – 11.74% of employee salary)
• Corporate income tax rate of 22%