Horizons Logo

Platform

Social security in Indonesia.

Learn about social security in Indonesia thanks to Horizons’ up-to-date guide.

Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 150 countries worldwide, without the need to open a local entity.

What does the social security system in Indonesia cover?

The social security system in Indonesia covers the following

  • Work accident protection
  • Death insurance
  • Old age savings
  • Healthcare
  • Pension

What are the mandatory contributions for employees to social security in Indonesia?

Employees in Indonesia must contribute 4% of their salaries to the social insurance scheme. The employer will withhold this amount and pay it on their behalf.

What are the mandatory contributions for employers to social security in Indonesia?

Employers in Indonesia must contribute between 10.24% – 11.74% of employee salaries toward the social insurance scheme.

How do mandatory contributions for employers compare to surrounding countries?

Compared to neighboring countries like Malaysia (12% -13% of employee salaries), Papua New Guinea (8.4%), and Singapore (9.98% – 32.48%), the mandatory contributions of Indonesia are reasonable at 10.24% – 11.74% of employee salaries.

Frequently asked questions (FAQ):

Employers contribute 10.24% – 11.74% of employee salary to social security in Indonesia. 

Social security in Indonesia covers situations like: 

  • Work accident protection
  • Death insurance
  • Old age savings
  • Healthcare
  • Pension

Hiring in Indonesia, Made Easy

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 150+ countries worldwide. All you need to do is focus on your business.

$290/month

Per employee

Client Testimonials

Success stories from businesses we’ve helped enter and grow in new markets.