Hiring, Paying and Caring for Talent in More Than 150 Nations
Fixed-term contracts are permitted in Indonesia. There is no minimum duration, but they cannot exceed two years. They can only be extended once for a period of no longer than one year. At the termination of the agreement, they may only be renewed once, only after a 30 day waiting period, and for no longer than two years. In total, fixed-term arrangements cannot exceed five years otherwise they will be deemed permanent. Fixed-term contracts may be terminated before the set end date by following the termination procedure outlined below.
Indonesian law makes a distinction between (1) permanent employees which are either workers (pekerja) or labourers (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.
Probationary periods are allowed for permanent employees only and are limited to three months. During the probationary period, the employment agreement can be terminated without following the termination procedure outlined below.
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.
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.
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.
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.
JKK (Work Accident Security) & JKM (Death Security), JHT (Old Age Security), BPJS (Social Insurance) and Pension
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.
