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Indonesia Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into Indonesia

Establishing and running payroll in Indonesia

Indonesia’s economy is one of the fastest-growing in the world and is the largest in the Southeastern Asian region. With over 250 million people, several large cities, and a varied range of industries, Indonesia is undoubtedly an attractive place for foreign investment and expansion. 

If your organization is interested in expanding into Indonesia, one of the first steps will be to hire staff and establish a system for Indonesia payroll outsourcing. This can be a long and difficult process in many cases, taking several months to complete and causing delays. 

At Horizons, we specialize in helping organizations of all kinds expand internationally, including into Indonesia. We can handle your payroll setup and management, even if you don’t have an entity registered in Indonesia.

Why choose the Horizons payroll outsourcing solution?

If you have an entity

If your organization has already registered an official entity in Indonesia, then you can outsource your payroll setup and management to us. 

This service is perfect for larger organizations that are looking to expand into Indonesia long term.

If you don’t have an entity

If you have not already officially registered an entity in Indonesia, then you can outsource your payroll setup and management to Horizons, making use of our established Indonesia PEO to act as employer of record.

This option is well suited to organizations looking for a quick, low-risk, and flexible route into Indonesian hiring and expansion.

Simplifying your Indonesia Payroll processing

Reliable delivery

We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.

Established presence

Our in-country subsidiary will act as employer of record, offering you a presence in Indonesia for legal local employment.

Flexible solution

Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Indonesia.

Up-to-date compliance

We’ll ensure you stay fully compliant at all times with the laws laid out in Indonesia`s Employment Ordinance.

Single point of contact

Our centralized service gives you a single point of contact, simplifying the entire India employment process.

Proven expertise

Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.

Indonesia payroll tax rate & laws

Taxation and withholdings requirements in Indonesia

Indonesia’s tax system is based on a progressive model, with employees paying a higher percentage in tax at higher income levels. This rate varies from 5% to 30% at the highest band. Additionally, Indonesia has a social security scheme to cover residents for healthcare. 

Both employers and employees need to pay around 5% of salary to this fund. More social programs are pending, such as an upcoming benefit system, so it’s vital that you remain engaged and up-to-date with the regulations in order to stay compliant in the future. 

The corporate tax rate in Indonesia is currently (2020) set at 22% of net taxable income, but a drop to 20% is due in 2022. 

Entitlements and terminations in Indonesia

Any organization hiring employees in Indonesia should always provide a formal contract of employment with details of entitlements like maternity cover, vacation, and termination terms clearly stated. 

For terminations, there is no mandatory notice period, but a severance payment is required. This payment can vary and is based on length of employment, the reason for termination, and other factors

How to establish Indonesia payroll outsourcing

In most cases, a foreign organization looking to establish Indonesia payroll  will need to register an official entity within the country. This can take a long time and requires strict adherence to the complex regulations to ensure compliance. 

Horizons can simplify your entire employment and payroll process, helping you get up and running in days rather than months by setting up Indonesia payroll outsourcing so you can focus on building your presence in the country and bypass the red tape.

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