Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
IDR Rp (Indonesian Rupiah)
Employer contributions
~11.74% employer (JKK 0.24% + JKM 0.3% + JHT 3.7% + JP 2% + JKN 4% health) + PPU
Minimum wage
IDR 5,396,761/month (Jakarta Provincial Minimum Wage 2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Jakarta
Timezone
WIB (GMT+7)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~IDR 16,761,000 total
/month
For a gross salary of
IDR 15,000,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~11.74% employer (JKK 0.24% + JKM 0.3% + JHT 3.7% + JP 2% + JKN 4% health) + PPU
Mandatory extras
THR (Tunjangan Hari Raya - Religious Holiday Allowance)
Monthly admin
Monthly payroll - BPJS by 15th - PPh 21 by 10th - SPT Tahunan March - THR before Eid
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
+
Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~IDR 16,761,000 total
Example gross salary
IDR 15,000,000 gross/month
~IDR 10,875,000 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~IDR 1,761,000 employer BPJS
Employer contributions on that salary
Employer contributions
~11.74% employer (JKK 0.24% + JKM 0.3% + JHT 3.7% + JP 2% + JKN 4% health) + PPU
Employee contributions
~3% employee BPJS Ketenagakerjaan + 1% health + income tax (PPh 21)
Total cost above gross
~11.74% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~IDR 6,000,000
Per month
Jakarta
IDR 8,000,000 - 25,000,000
~40%
Surabaya
IDR 6,000,000 - 18,000,000
~15%
Monthly gross. National average salary per year:
~IDR 72,000,000
Minimum wage
IDR 5,396,761/month (Jakarta Provincial Minimum Wage 2026)
Paid:
Monthly
Extra pay
THR (Tunjangan Hari Raya - Religious Holiday Allowance)
1 month salary - mandatory - paid 7 days before Eid ul-Fitr
Eid ul-Fitr (annual)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
5% up to IDR 60M / 15% / 25% / 30% / 35%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 15th (e-SPT)
Social security payments
March 31 (SPT Tahunan)
Income tax
By January 31
Employee tax certificate
Bukti Potong A1 (PPh 21 Certificate)
March 31
Annual return
SPT Tahunan PPh 21
Late payment penalties
Late BPJS: 2% monthly; late PPh 21: 2% monthly; THR late: 5% of THR amount fine
Who collects what
DGT (Direktorat Jenderal Pajak)
PPh 21 income tax
BPJS Ketenagakerjaan
Employment social security
BPJS Kesehatan
National health insurance
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Cuti Tahunan
12 working days/year (after 12 months)
Public holidays
~16 public holidays
Sick leave
Sakit
Full pay for first 4 months; 75% next 4 months; 50% next 4 months
Maternity leave
13 weeks (3 months maternity)
Full pay from employer; BPJS Kesehatan reimburses
The contracts you can use, and what ending an employment relationship costs.
Permanent
Perjanjian Kerja Waktu Tidak Tertentu (PKWTT)
Fixed term
Perjanjian Kerja Waktu Tertentu (PKWT)
Independent contractor
Perjanjian Pemborongan Pekerjaan / Freelance
Collective agreements
Perjanjian Kerja Bersama (PKB)
Ending employment
Uang Pesangon / Uang Penghargaan Masa Kerja
How it is calculated
Pesangon: up to 9x monthly wage; UPMK: up to 10x; UPSM: 1-2x
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
PKWT (Fixed-Term Contract) Misuse
Risk Level: HIGH
Indonesian law (PP 35/2021) strictly limits PKWT to work that is temporary, seasonal, or experimental (max 5 years total including extensions). Using PKWT for permanent business activities triggers automatic PKWTT (permanent) conversion by Disnaker. Employers must pay PKWT completion compensation (1 month per year).
THR Non-Payment or Late Payment
Risk Level: HIGH
THR (Religious Holiday Allowance) must be paid 7 days before Eid ul-Fitr. Late payment triggers a 5% fine of total THR owed, plus reputational risk and Disnaker reporting. Many multinational employers miss the deadline due to unfamiliarity with the Islamic lunar calendar.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
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$49
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FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.