Remote’s guide to employing in

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Services available in this country:
Employer of Record ProductContractor ManagementPayroll
  • Capital City


  • Currency

    Indonesian rupiah (Rp, IDR)

  • Languages


  • Population size


Services available in this country:
Employer of Record ProductContractor ManagementPayroll
A temple with two towers and flowers in the background.

Employment termination

Termination process

Indonesian labour law is unique in that it places the onus on employers to go the extra mile to avoid terminating an employee by negotiating to offer better working conditions, coaching, etc.

That aside, employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, work-related offences, sustained illness over the course of 12 months, or business contingencies like redundancy or insolvency.

Notice period

There is no notice stipulated notice period but employers are generally expected to provide 30-days advance notice before terminating an employee.

Severance pay

Employees are entitled to severance pay that’s proportional to their tenure with an employer as defined below:

  • 1 months wages: Up to 1 year of employment

  • 2 months wages: Up to 1 year, but less than 2 years of employment

  • 3 months wages: Up to 2 years, but less than 3 years of employment

  • 4 months wages: Up to 3 years, but less than 4 years of employment

  • 5 months wages: Up to 4 years, but less than 5 years of employment

  • 6 months wages: Up to 5 years, but less than 6 years of employment

  • 7 months wages: Up to 6 years, but less than 7 years of employment

  • 8 months wages: Up to 7 years, but less than 8 years of employment

  • 9 months wages: 8 or more years of employment

Probation periods

Probationary periods can only be set for employees on indefinite-term contracts and cannot exceed three months.