Social security in
Indonesia.

SALARY PAYMENT IN Indonesian Rupiah (IDR, Rp)

CONTRACT LANGUAGES Bahasa Indonesia / English

PAYROLL TAX 10.24% – 11.74%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Indonesia.

We offer fair, scalable, and transparent pricing on Indonesia PEO service. Contact us for a cost breakdown

End service in Indonesia with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

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Indonesia

What does the social security system in Indonesia cover?

The social security system in Indonesia covers the following

Work accident protection
Death insurance
Old age savings
Healthcare
Pension

What are the mandatory contributions for employees to social security in Indonesia?

Employees in Indonesia must contribute 4% of their salaries to the social insurance scheme. The employer will withhold this amount and pay it on their behalf.

What are the mandatory contributions for employers to social security in Indonesia?

Employers in Indonesia must contribute between 10.24% – 11.74% of employee salaries toward the social insurance scheme.

How do mandatory contributions for employers compare to surrounding countries?

Compared to neighboring countries like Malaysia (12% -13% of employee salaries), Papua New Guinea (8.4%), and Singapore (9.98% – 32.48%), the mandatory contributions of Indonesia are reasonable at 10.24% – 11.74% of employee salaries.

Hiring in Indonesia, Made Easy

Your business can easily hire employees in Indonesia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in Indonesia?

Employers contribute 10.24% – 11.74% of employee salary to social security in Indonesia.

What situations does social security cover for employees in Indonesia?

Social security in Indonesia covers situations like:

Work accident protection
Death insurance
Old age savings
Healthcare
Pension

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