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Labor Laws in Indonesia

  • Annual Leave: Minimum 12 days
  • Maternity Leave: 3 months
  • Public Holidays: 16
  • Workweek: 40 hours per week.

Income Tax in Indonesia

Income Tax in Indonesia is progressive ranging from 5% to 35%.

Value Added Tax (VAT) in Indonesia

Indonesia has a standard VAT (GST) rate of 11%.

Social Security in Indonesia

In Indonesia, the social security contributions for employers and employees in 2024 are structured as follows:

Health Insurance (BPJS Kesehatan)

  • Employer Contribution: 4% of the employee’s monthly salary.
  • Employee Contribution: 1% of the employee’s monthly salary.
  • Salary Cap: IDR 12 million per month.

Old Age Security (Jaminan Hari Tua or JHT)

  • Employer Contribution: 3.7% of the employee’s monthly salary.
  • Employee Contribution: 2% of the employee’s monthly salary.
  • No salary cap applies.

Pension Security (Jaminan Pensiun or JP)

  • Employer Contribution: 2% of the employee’s monthly salary.
  • Employee Contribution: 1% of the employee’s monthly salary.
  • Salary Cap: IDR 9,077,600 per month.

Work Accident Security (Jaminan Kecelakaan Kerja or JKK)

  • Employer Contribution: Ranges from 0.24% to 1.74% of the employee’s monthly salary, depending on the risk level of the work.
  • No employee contribution.
  • No salary cap applies.

Death Security (Jaminan Kematian or JKM)

  • Employer Contribution: 0.3% of the employee’s monthly salary.
  • No employee contribution.
  • No salary cap applies.

Unemployment Security (Jaminan Kehilangan Pekerjaan or JKP)

  • Employer Contribution: 0.24% of the employee’s monthly salary.
  • No employee contribution.
  • Salary Cap: IDR 5 million per month.

Work Visas Indonesia

The work visas available to legally work in Indonesia include:

KITAS (Temporary Stay Permit Card):

This is the most common work visa for foreigners in Indonesia, it allows the holder to work for a specific employer or company in Indonesia. The KITAS is initially issued for 1 year and can be extended annually.

KITAP (Permanent Stay Permit Card):

This is a permanent residence permit that allows foreigners to work in Indonesia without being tied to a specific employer and To qualify, foreigners must have held a KITAS for at least 3 consecutive years.

Business Visa:

This visa is for foreigners coming to Indonesia to conduct business activities, such as attending meetings, signing contracts, or exploring business opportunities. It does not allow the holder to engage in paid employment in Indonesia.

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