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Hire Workers in Indonesia

Looking to conquer the world of business without getting tangled up in international employment complexities?

Look no further than TCWGlobal! The best payrolling and global employer of record in Indonesia.

No cultural barrier or legal obstacle will stand in your way with us by your side. We will tailor our services to fit your unique needs and help you shine no matter where you want to operate in the world.

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Fixed-Term Contracts

Fixed-term contracts are permitted in Indonesia. There is no minimum duration, but fixed-term arrangements cannot exceed five years. The period of five years includes the entire fixed-term arrangement and its extension, beyond this and the arrangement will be deemed permanent. Fixed-term contracts may be terminated before the set end date by following the termination procedure outlined below.

Worker Classifications

Indonesian law makes a distinction between (1) permanent employees which are either workers (pekerja) or laborers (buruh), and (2) non-permanent/contracted employees. Both are entitled to the same employment rights, but permanent employees have more such as rights for severance and service pay in the event of termination.

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Probationary Periods

There is no probationary period for a fixed term contract. Probationary periods are allowed for permanent employees only and are limited to three months. During the probationary period, the employment agreement can be terminated by way of serving prior termination notice no later than seven business days before the proposed termination date to the Worker.

Holidays

Indonesia observes between 14 and 18 National holidays depending on the year. They are considered paid days off. If a Worker works on a public holiday, wages are due at a minimum of 200%. Indonesia also has eight days of optional "collective" or "common" leave set by the government, which is counted as part of the Worker's vacation entitlement if used. The Worker may choose whether or not to observe the collective/common leave days.

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Vacation

After 12 consecutive months of service, Workers are entitled to a minimum of 12 days of annual vacation. (Additional vacation is required after six years of service). It is customary for employers to offer annual vacation from the Worker's start date. There is no statutory requirement for unused leave to carry over year to year. However, if there is accrued but unused leave at the termination of the contract, it is payable to the Worker.

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Sick Leave

Workers are entitled to paid sick leave with a medical certificate. Workers who are seriously ill are entitled to their wages based on their length of absence as follows: 0 - 4 months: 100% of wages; 4 - 8 months: 75% of wages; 8 - 12 months: 50% of wages; 12 - 16 months: 25% of wages. Employers are responsible for sick pay, not the government.

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Overtime

Overtime is considered any hours over and above the standard workweek. Workers must agree to work overtime. If they do agree, it is limited to 4 hours per day or 18 hours per week and wages for overtime must be paid at 200%. Overtime performed on weekly rest days or public holidays is payable at an increasing premium for each hour of overtime work. The overtime rules do not automatically apply to certain positions including executives and managers.

Mandatory Bonuses

JKK (Work Accident Security) & JKM (Death Security), JHT (Old Age Security), BPJS (Social Insurance) and Pension

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Employer of Record

Creating a worldwide workforce is a continuous process that extends beyond a contract.

TCWGlobal surpasses the typical employer of record (EOR) by ensuring that your team receives personalized attention, ranging from smooth payrolling management to customized benefits based on your specific needs and location.

  • Hire compliantly in 150 countries
  • Provide customized service and benefits
  • Remove the risk from your organization

Lets talk about payrolling.

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