Are there labor laws in Indonesia?

Labor Requirements The Labour Law in Indonesia is regulated mainly by The Indonesian Labour Law Act 13 of 2003 (also called as Manpower Act) as amended by Law No. 11/2020 called as Job Creation Law.

Are temporary employees entitled to leave?

Only employees who work less than 24 hours per month for the employer are denied the benefits of annual leave. This means that the so-called “temporary employee” and the so-called “independent contractor” are also entitled to the accrual of annual leave.

What is the probation period in Indonesia?

An employer usually imposes a probation period of maximum 3 months (as defined by Article 60 of the Labour Law). The employee must be paid at or above the minimum wage and the employer can terminate the employment relationship during the probation period without notice and without obligation to pay a severance package.

What is the notice period for temporary workers?

Temporary employees are also obliged to provide their employer with at least one week’s notice of early termination.

What is the minimum wage in Indonesia?

Minimum Wage Update in Indonesia from 01 January 2022 – December 31, 2021. The minimum wages have been revised in Indonesia, with effect from 01 January 2022. The monthly minimum wage in Jakarta has increased from IDR4,416,186.00 to IDR4,641,854.

What is the working hours in Indonesia?

Regular working hours. The regular working hours in Indonesia are 40 hours per week, either seven hours a day for six working days per week or eight hours a day for five working days in a week.

How long can a temporary contract last?

The maximum period for a temporary contract varies but they must not normally extend beyond 6 months. For both types of Temporary Contract, the post must be submitted via i-GRasp for approval.

Can probation period be extended in Indonesia?

The duration of the probation for any employee must be communicated in advance to the employee concerned. A probationary period can be neither extended nor repeated. Violation of this restriction will mean that the employee automatically acquires permanent status.

Is 13th month pay mandatory in Indonesia?

Employees are paid a mandatory 13th-month salary payment in Indonesia, often referred to as THR. This is considered a religious day allowance and is paid one week before the respective religious holiday.

What are my rights on a temporary contract?

You’re entitled to a rest of at least 11 hours per 24 hours, a day off after a week’s work, and the right to work a maximum of 48 hours in one week. You’re also entitled to maternity, paternity, adoption and parental leave after a certain amount of time with the company, as well as time off for illness.

What is the unemployment rate in Indonesia?

Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Indonesia unemployment rate for 2020 was 4.11%, a 0.49% increase from 2019. Indonesia unemployment rate for 2019 was 3.62%, a 0.78% decline from 2018.

What is the daily wage in Indonesia?

The minimum wages have been revised in Indonesia, with effect from 01 January 2022. The monthly minimum wage in Jakarta has increased from IDR4,416,186.00 to IDR4,641,854. Note: This minimum wage increase might not reflect the inflationary trends.

Do Indonesians work Friday?

The usual hours are from 08:00 – 16:00 with Monday to Friday with an hour for lunch. There is also a break on Friday’s from 11:30 – 13:30 for prayer and it is not uncommon to work on Saturday’s from 08:00 – 12:00.

What are the rights of temporary workers?

Most importantly, temporary agency workers have the right to the same basic employment and working conditions, such as pay and holidays, as permanent staff once they have worked for 12 weeks in the same role for the same hirer.

How long can an employee be absent from work?

There is no statutory definition of “a reasonable time” but it is generally considered that 3 to 5 days fulfills the definition. Quite obviously, you must follow disciplinary procedures (in absentia if necessary) before dismissing the employee.

Can I dismiss an employee for Unauthorised absence?

Act, an employee who was absent for a period exceeding 10 consecutive days without authorisation or informing the employer of the reason for such absence, could be dismissed even for a first offence.

How many sick leaves are there in Indonesia?

Sick leave

Percentage of salary to be paid	Sick leave period
100%	First four months
75%	Second four months
50%	Third four months
25%	Following four months

How many days leave in Indonesia?

12 days
Paid Time Off Paid leave in Indonesia is set in the employment contract as at least 12 days of paid annual leave per year after completing one full year of employment.

Can a foreign employee work in Indonesia on a temporary basis?

(See Outsourcing) Where employers based outside Indonesia temporarily post non-Indonesian employees to work in Indonesia, these employees are covered by the rules that apply to the employment of all foreign nationals, while the recruitment of Indonesian nationals in Indonesia to work abroad on a temporary basis is specifically regulated by statute.

How is the workforce regulated in Indonesia?

The workforce is regulated by the Indonesian Manpower Law, which protects the rights and interests of both workers and employers. The Manpower Labour Law can and does change frequently, and employers must be familiar with current regulations and how they affect hiring practices.

Are employment contracts legally binding in Indonesia?

Employment contracts are legally binding and must adhere to the Indonesian Manpower Law. We will introduce the types of employment contracts in Indonesia later in this article.

Are these benefits required by the Indonesian Manpower law?

These benefits are not required by Manpower Law, but they go a long way for employee morale and job satisfaction. *Bonuses (other than THR) are not regulated nor required by the Indonesian Manpower Law, but companies can set up a structure for their Company Regulations, based on performance.