What it costs to employ in Indonesia
Indonesian candidates negotiate the figure that reaches their bank account, not a gross package. Enter that figure below and this works backwards to the gross salary required, then adds every mandatory contribution and the thirteenth month. Reference tables follow if you would rather not type anything.
Cost your own hire
What lands in the employee's bank account each month, after tax and their own social security contributions. This is the figure candidates negotiate. Everything below is worked out from twelve times it.
Sets the PTKP non-taxable threshold. TK is single, K is married, the number is dependents to a maximum of three.
Sets the JKK work accident rate. Office-based IT work is very low.
For time and materials contracts. Indonesian law requires a minimum of 12 working days. Leave at 0 for a fixed monthly fee where you carry leave cost directly.
One month of gross wage a year, taken as a cash allowance towards private cover or as a reimbursement against receipts, at the employee's choice. We recommend offering it, so it is on by default. Senior Indonesian candidates expect private family cover, and our guide on that covers why.
Annual amount, treated as taxable. A receipted reimbursement may be treated differently; check with your tax advisor.
Annual amount. A fixed monthly allowance is a tunjangan tetap and joins the wage base, which raises THR and end-of-term compensation. An attendance-based one stays outside that base. Jakarta commutes make this a live question, and our guide on the commute covers it.
Reference tables
Worked figures on fixed assumptions, for when you want a number without typing one.
Fully loaded cost by salary band
Single with no dependents (TK/0), office risk class, no leave provision, medical benefit included. Figures in IDR unless marked.
| Net salary a year |
Gross salary required |
You pay a month |
You pay a year |
USD a month |
USD a year |
Cost multiple |
|---|---|---|---|---|---|---|
| 60,000,000 | 62,871,281 | 8,265,345 | 99,184,136 | 486 | 5,836 | 1.65x |
| 90,000,000 | 95,570,331 | 12,564,111 | 150,769,327 | 739 | 8,871 | 1.68x |
| 120,000,000 | 132,328,265 | 17,396,476 | 208,757,709 | 1,024 | 12,283 | 1.74x |
| 150,000,000 | 168,408,542 | 21,976,074 | 263,712,884 | 1,293 | 15,517 | 1.76x |
| 200,000,000 | 228,234,842 | 29,492,174 | 353,906,094 | 1,735 | 20,824 | 1.77x |
| 250,000,000 | 293,521,834 | 37,694,313 | 452,331,757 | 2,218 | 26,616 | 1.81x |
| 300,000,000 | 361,371,834 | 46,218,448 | 554,621,373 | 2,720 | 32,634 | 1.85x |
| 400,000,000 | 500,475,981 | 63,694,387 | 764,332,642 | 3,748 | 44,974 | 1.91x |
| 500,000,000 | 645,929,802 | 81,968,049 | 983,616,582 | 4,823 | 57,877 | 1.97x |
| 600,000,000 | 791,383,379 | 100,241,680 | 1,202,900,155 | 5,898 | 70,780 | 2.00x |
| 800,000,000 | 1,082,290,777 | 136,788,972 | 1,641,467,669 | 8,049 | 96,585 | 2.05x |
| 1,000,000,000 | 1,373,198,175 | 173,336,265 | 2,080,035,182 | 10,199 | 122,391 | 2.08x |
The cost multiple is what you pay divided by what the employee banks. It rises with salary because Indonesian income tax is progressive, so a senior hire costs proportionally more than a junior one.
Where the money goes
A 300,000,000 net salary, broken out in full, with the medical benefit included. Fifteen payment events a year, each one delivering one month of the agreed net salary, with PPh 21 assessed across the lot.
| Salary, twelve months | |
| Gross salary needed to deliver 300,000,000 net | 361,371,834 |
| Payment events beyond salary | |
| THR religious holiday allowance one month of gross wage, statutory | 30,114,320 |
| End-of-term compensation one month of gross wage per year of service, statutory | 30,114,320 |
| Medical benefit one month of gross wage, a CloudInovasi benefit | 30,114,320 |
| Total gross paid to the employee | 451,714,793 |
| of which PPh 21 income tax base includes the employer JKK, JKM and Kesehatan premiums | 66,717,000 |
| of which employee BPJS JHT 2%, JP 1%, Kesehatan 1%, on the wage only | 9,997,793 |
| Cash the employee banks | 375,000,000 |
| Mandatory contributions, employer share | |
| JHT, old-age savings 3.7% | 13,370,758 |
| JP, pension 2%, at the wage ceiling | 2,660,712 |
| JKK, work accident 0.24% | 867,292 |
| JKM, death benefit 0.3% | 1,084,116 |
| Kesehatan, health 4%, at the wage ceiling | 5,760,000 |
| Total cost of employment | 475,457,671 |
| CloudInovasi | |
| Management fee | 71,318,651 |
| PPN on the fee 11% effective | 7,845,052 |
| Invoice, annual | 554,621,373 |
| Invoice, monthly | 46,218,448 |
Dependents reduce the tax
Same 300,000,000 net salary, medical benefit included. PTKP is the non-taxable threshold: TK is single, K is married, the number is dependents to a maximum of three.
| Status | PTKP threshold | PPh 21 due | Invoice, annual |
|---|---|---|---|
| TK/0 | 54,000,000 | 66,717,000 | 554,621,373 |
| TK/3 | 67,500,000 | 62,210,500 | 549,097,852 |
| K/0 | 58,500,000 | 65,214,750 | 552,780,097 |
| K/3 | 72,000,000 | 60,708,250 | 547,256,577 |
Rates and legal basis
Every figure above, with its source. All confirmed as currently in force.
- PPh 21 bands
- 5% to 60,000,000 · 15% to 250,000,000 · 25% to 500,000,000 · 30% to 5,000,000,000 · 35% above
UU No. 7/2021 (Harmonisasi Peraturan Perpajakan), reinforced by PP No. 55/2022. Verified against Direktorat Jenderal Pajak. - PTKP
- 54,000,000 base, plus 4,500,000 if married, plus 4,500,000 per dependent to a maximum of three
Confirmed unchanged by DJP. - Biaya jabatan
- 5% of gross, capped at 500,000 a month or 6,000,000 a year
PMK No. 168/2023, retaining PMK No. 250/PMK.03/2008. - BPJS Ketenagakerjaan
- JHT 3.7% employer and 2% employee · JP 2% and 1% · JKK 0.24% to 1.74% by risk class · JKM 0.3%
Rates per BPJS Ketenagakerjaan, Perhitungan Iuran. - JP wage ceiling
- 11,086,300 a month, from 1 March 2026
BPJS Ketenagakerjaan circular No. B/1226/022026 dated 25 February 2026, under PP No. 45/2015 art. 29. Revised each February, effective each March. - BPJS Kesehatan
- 5% total, 4% employer and 1% employee, capped at 12,000,000 a month
Perpres No. 64/2020, amending Perpres No. 82/2018. - Employer premiums in the tax base
- Employer JKK, JKM and BPJS Kesehatan contributions are added to the employee's gross income for PPh 21; employer JHT and JP are not
Article 5(3)(e) of PMK No. 168 of 2023 puts employer-paid health maintenance contributions inside PPh 21, and Article 4(1)(n) of the Income Tax Law makes insurance premiums an object of tax. JHT and JP are deferred savings rather than a premium for current cover, so they stay outside it. - PPN on the management fee
- 11% effective
The statutory 12% is applied to an 11/12 base under PMK No. 131/2024, giving 11% for services. The full 12% reaches only certain luxury goods. - Contract type
- Every placement is a fixed-term contract (PKWT) of one or two years, renewable, held by an Indonesian citizen
This is what makes uang kompensasi apply to every placement. PP No. 35 of 2021 caps a fixed-term contract at five years including extensions, and a placement renewing past that converts to a permanent contract, at which point uang kompensasi stops and statutory severance begins. This calculator models neither case. - End-of-term compensation
- One month of wages for each twelve months of service, pro-rated
Uang kompensasi under Articles 15 to 17 of PP No. 35 of 2021. Due at the ordinary expiry of every fixed-term contract, including before an extension, and pro-rated where a term ends early. It replaces severance, which a fixed-term contract never attracts. PP No. 35 of 2021 flows from the Job Creation Law, and Constitutional Court Decision 168/PUU-XXI/2023 requires the employment cluster to be re-enacted as a separate statute by 31 October 2026, failing which the earlier statute revives and this entitlement would need rechecking. - THR
- One month of gross wage, so thirteen payments a year
CloudInovasi bears the PPh 21 on it. THR is taxable income, so it sits inside the single annual PPh 21 computation alongside the twelve wage months rather than carrying a separate gross-up. - Medical benefit
- One month of gross wage, optional, taken as a cash allowance towards private cover or as a reimbursement against receipts, at the employee's choice
A CloudInovasi benefit, not a statutory one. Taxable either way. PMK No. 66 of 2023 exempts employer-provided health and treatment facilities from income tax only for work accidents, occupational disease and emergency life-saving care, so ordinary cover and ordinary reimbursement both sit inside the PPh 21 base. - Exchange rate
- 16,995 IDR/USD, the twelve-month average to July 2026
We convert at the trailing twelve-month average, not the spot rate. Our cost base is rupiah and a twelve-month engagement outlives any single day's quote, so spot will usually read weaker than this figure. We still recommend contracting in rupiah so neither side carries currency risk over the term.
Indicative only, and not legal or tax advice. Statutory figures were verified against Indonesian government sources on 25 July 2026 and are reviewed each February, when BPJS publishes the new pension wage ceiling. Your own figures will differ with dependents, risk class, leave provision and any allowances. Send us the role and we will cost it exactly.