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SALARY PAYMENT IN Indonesian Rupiah (IDR, Rp)
CONTRACT LANGUAGES Bahasa Indonesia / English
PAYROLL TAX 10.24% – 11.74%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Indonesia
The minimum wage in Indonesia fluctuates wildly depending on the province or city. The minimum wage in Jakarta, Indonesia is 4.64M IDR/month.
This works out to a minimum wage of IDR 29,000 per hour in Jakarta.
Yes, it does vary by region. Outside of Jakarta, the minimum wage is generally lower, with the lowest minimum wage at 1.68M IDR/month.
Due to the huge range of minimum wages active in Indonesia, we will focus on the minimum wage of Jakarta. The minimum wage in Indonesia (Jakarta) has increased at a steady rate over the last 5 years, at an average rate of IDR 250,000 (USD $16.25) per month per year.
| Date | Min. Wage, Monthly (IDR) |
| 2022 | 4.64M |
| 2021 | 4.42M |
| 2020 | 4.27M |
| 2019 | 3.95M |
| 2018 | 3.64M |
| 2017 | 3.35M |
| 2016 | 3.10M |
| 2015 | 2.70M |
Southeast Asia is a varied region, with some very strong economies and some very unstable economies. Indonesia’s minimum wage is higher than in some countries but significantly lower than in others, such as Singapore.
The minimum wage for foreigners seeking employment in Indonesia is the same as for locals seeking employment. There is no special minimum wage for foreigners in Indonesia.
Your business can easily hire employees in Indonesia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The average salary in Indonesia is approximately double the minimum wage in Indonesia; in reality, an employee’s salary will depend on a range of factors including the employee’s location, previous experience, experience level, and market conditions. For markets like Indonesia, employers should go into the hiring process with an open mind and a flexible budget.
It is generally not possible to hire skilled employees at the minimum wage in Indonesia. Compared to other markets, however, average salaries are relatively low. While skilled employees may be hired at a lower cost than in more developed markets, these employees usually expect a higher pay rate than the minimum or even the average salaries.
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