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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 standard notice period for resignations is 30 days.
Insufficient notice period in Indonesia carries risk.
If the employer provides an insufficient notice period, they have violated labor law. There is no payment in lieu of notice available in Indonesia; the only option is to suspend the employee from their duties and continue paying through the notice period. Employers must always provide sufficient notice in cases of termination.
If the employee provides insufficient notice, there are no regulations which sanction the employee. Any consequences for insufficient resignation notice in Indonesia need to be set out clearly in the employment contract.
Additionally, it is not recommended that an employer immediately terminate an employee for failing to show up without notice in Indonesia; normally an employer must give 3 warnings before taking further action. In instances where an employee fails to attend work without warning, it is not required that an employee pay the employee.
The notice period in Indonesia cannot be reduced, nor is payment in lieu of notice an option in Indonesia. At most, employers can suspend employees from their duties during the notice period while still paying their full salary.
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.
In most cases, employees must give a minimum 14 days when resigning in Indonesia.
In most cases, employers must give a minimum 14 days when terminating employment in Indonesia.
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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