Hiring Employees in Bali Without Having to Set Up a Company

There are many reasons to hire employees in Bali. Whether you are looking for a cost-effective way to serve your overseas customers or clients in Bali, an Employer of Record offers you an alternative solution to setting up a legal entity within the Indonesian market. In this article, we will walk you through the key aspects of hiring remote teams in Bali and explain the benefits of partnering with an Employer of Record.

Commonly outsourced roles in Bali

As a part of Indonesia, Bali is an equally popular destination for finding candidates among the country’s primarily young and tech-savvy workforce. As a popular tourist destination with an appealing climate, Bali also attracts many digital nomads, from abroad and from other regions in Indonesia. The region is therefore common for overseas companies looking to outsource the following remote roles:

• Software developers
• IT specialists
• Virtual Assistants
• Accountants
• Content creators

Partnering with RecruitGo’s international recruitment service allows you to not only outsource specific job classifications to Indonesian specialists but also to adapt your recruitment process to the local market. Our local recruiters can provide market insights on competitive salary rates and expected benefit packages for hiring within Bali’s highly skilled remote workforce.

Key considerations for hiring employees in Bali to set up remote operations

Ensuring compliance with labor laws in Bali

Employees that you hire in Bali are subject to the same employment regulations as the rest of Indonesia. While minimum salary can vary depending on the region, competitive salary rates are usually based on industry and demand. As a foreign employer, you must ensure compliance with all of Indonesia’s key labor laws:

• Employment contract: Indonesia has two types of contract, fixed or indefinite term. In both cases, you must include employment terms, duties, hours, and salary in writing. To learn more about the conditions for each contract type, take a look at our related post on hiring contractors in Indonesia.
• Overtime laws: In Indonesia, the work week is 40 hours. Labor law currently limits overtime to no more than 4 hours per day and 18 hours per week, which is an increase from previous 3 hours per day and 14 hours per week. You also must calculate your salary based on the number of hours worked:
  1.5 X hourly rate for the first hour
  • 2 X hourly rate for subsequent hours

  A common challenge faced by foreign employers who hire employees in Bali is adapting to an unfamiliar legal environment. RecruitGo can help you navigate through the complexities of Indonesian employment law through our local experts. We also offer managed payroll services which can ensure compliance for your operations within the country.

  Providing mandatory benefits for your employees in Bali

  Once you are ready to hire employees in Bali, you need to register them for mandatory health and social security benefits. You are also responsible for properly calculating statutory deductions to ensure that they have access to key services mandated through Indonesian law:

  1. BPJS Kesehatan (Health Insurance): Health insurance coverage for medical expenses for employees and their families. Monthly premiums are shared between the employee and employer to make up 5% of the monthly salary.
  2. BPJS Ketenagakerjaan (Employment Insurance): This insurance covers work-related injuries, pensions, and death benefits. The contributions are also shared between both parties, with individual rates applied to each type of social security benefit.

  While these are mandatory benefits, it is important to consider offering supplementary benefits to prospective employees in Bali as part of your employment strategy. Due to the high demand for remote workers in the region, you need to set yourself apart from competitors by offering high-value benefits, such as private Indonesian health insurance plans.

  Hire in Bali without setting up a legal entity through an Employer of Record

  Benefits of partnering with an Employer of Record in Bali

  Using RecruitGo’s Employer of Record (EOR) service instead of setting up a company will save you a lot of time and energy in hiring employees in Bali. Moreover, employees can start working immediately without the need to wait for the company registration, which depending on the business classification, can take from a few weeks up to months. 

  An EOR enables you to test your business idea in Bali. Especially with minor financial contributions and risk, in case your business model involves hiring Indonesian or foreign employees. This also allows you to scale your business up or down at any time while reducing your overhead costs, which can then be reallocated to your core services.

  While our local experts will handle payroll and legal compliance for you, you still maintain a final say on all hiring decisions as well as on overall people management. You can approve leave requests, view contracts, and monitor payroll through our easy-to-use app. You also gain access to our local recruitment specialists to help you find exactly the right candidates for your needs.

  Additional services that you can outsource through an Employer of Record in Bali

  RecruitGo offers you several additional services through our EOR service to ensure that your remote teams are set up efficiently. Through our local insights, our team can help you avoid common challenges and implement some industry best practices to maximize your remote employee’s efficiency:

  • Remote hub setup: Our team can help you find and set up local office space in Bali to prevent isolation and give you more supervision capabilities when hiring employees in Bali. 
  • Logistics and equipment: If you have specific software and hardware that you want for your teams’ operations, we can help supply these. Our local team can also navigate logistical efforts such as setting up networks and data security.
  • Managed payroll: If you decide that you want to set up your own legal entity in Bali, at any time we can transition your employees from RecruitGo to you. However, we still offer the possibility to maintain the managed payroll service to avoid the need to set up an in-house team and continue ensuring full compliance with local laws.
  • Ad-hoc recruitment: Whether you want to expand your team, or set up separate roles, through our Employer of Record in Bali you can at any time access our recruitment services to help post jobs and manage the recruitment process in your stead.
  • Invoicing service: In case you have customers in Indonesia, and you would like to invoice them in Indonesia, RecruitGo can also provide you with an invoicing service. The entity that is formally the employer of your employees will issue an invoice and pay taxes from the income earned. Once this is done, the money will be transferred to you.

  Want to hire employees in Bali through our Employer of Record service? Contact us via the form below to get in touch with our local specialists!