Calculate Your EOR Costs in Indonesia
Calculate the total employer cost of hiring in Indonesia through an Employer of Record. Includes BPJS Ketenagakerjaan, BPJS Kesehatan, PPh 21 withholding, and the RecruitGo EOR fee.
What You Actually Pay to Hire in Indonesia
Indonesia's mandatory employer contributions add 10 to 13 percent on top of gross salary, depending on salary level and whether it exceeds the BPJS Kesehatan and JP caps. This includes BPJS Ketenagakerjaan (JHT at 3.7%, JP at 2%, JKK at 0.24%, JKM at 0.3%) plus BPJS Kesehatan at 4% of salary capped at IDR 12,000,000.
PPh 21 income tax is borne by the employee, but the employer must withhold and remit it monthly to the DJP (tax office). The withholding uses the TER (effective rate) method introduced in 2024, which simplifies monthly calculations by applying a single rate based on bruto income and PTKP category.
With the RecruitGo EOR fee included, the total landed cost to the employer is typically 22 to 28 percent above the gross salary, making Indonesia one of the most cost-effective hiring markets in Southeast Asia. Learn more about hiring employees in Indonesia through our EOR service, or use our Indonesia Salary and Tax Calculator for a detailed salary breakdown.
Workforce Social Security
BPJS Ketenagakerjaan provides four programs for private-sector employees: JHT (Jaminan Hari Tua) for old-age savings, JP (Jaminan Pensiun) for pension, JKK (Jaminan Kecelakaan Kerja) for work accident insurance, and JKM (Jaminan Kematian) for death benefit insurance. The employer bears the larger share of contributions across all programs.
| Program | Employee | Employer | Cap |
|---|---|---|---|
| JHT (Old-Age Savings) | 2% | 3.7% | None |
| JP (Pension) | 1% | 2% | IDR 11,086,300 |
| JKK (Work Accident) | - | 0.24% | None |
| JKM (Death Benefit) | - | 0.3% | None |
| Total | 3% | 6.24% | - |
National Health Insurance
BPJS Kesehatan provides universal health coverage for all Indonesian workers. The total premium is 5% of monthly salary, split as 4% employer and 1% employee. The salary base is capped at IDR 12,000,000, meaning maximum contributions are IDR 480,000 (employer) and IDR 120,000 (employee) per month.
| Component | Rate | Max / month |
|---|---|---|
| Employer share | 4% | IDR 480,000 |
| Employee share | 1% | IDR 120,000 |
| Salary cap | IDR 12,000,000 | |
Income Tax Withholding
PPh 21 is Indonesia's employee income tax, withheld monthly by the employer. Since January 2024, the government uses the TER (Tarif Efektif Rata-rata) method for monthly withholding: a single effective rate is applied to bruto income based on the employee's PTKP category. At year-end (December), the actual annual tax is reconciled using progressive brackets, and any difference is adjusted.
PTKP (Penghasilan Tidak Kena Pajak) is the non-taxable income threshold that reduces the employee's taxable income in the annual calculation. A single employee with no dependents (TK/0) has a PTKP of IDR 54,000,000 per year. Marriage adds IDR 4,500,000, and each dependent (up to 3) adds another IDR 4,500,000.
| Annual Taxable Income | Tax Rate |
|---|---|
| IDR 0 - 60,000,000 | 5% |
| IDR 60,000,001 - 250,000,000 | 15% |
| IDR 250,000,001 - 500,000,000 | 25% |
| IDR 500,000,001 - 5,000,000,000 | 30% |
| Over IDR 5,000,000,000 | 35% |
The Most Affordable EOR in Indonesia
RecruitGo charges 10% of the total monthly employer cost (gross salary plus all statutory employer contributions), making the fee proportional to the actual salary level. This means junior hires cost less in EOR fees, and senior hires are capped for predictability.
The minimum fee is USD 49.99 per employee per month, applicable to entry-level roles. The maximum fee is capped at USD 250 per employee per month, regardless of how high the salary is. Compare this with most EOR providers who charge a flat $400 to $600 per employee per month regardless of salary level.
For example, a junior hire at IDR 8,000,000 per month costs approximately IDR 900,000 (about $57) in EOR fees, not $400 or more. For a senior hire at IDR 80,000,000 per month, the fee caps at IDR 3,950,000 ($250), still well below the industry standard.
RecruitGo handles full compliance: BPJS registration for both Ketenagakerjaan and Kesehatan, PPh 21 withholding and e-Filing, employment agreements compliant with Indonesian labor law, and all ongoing statutory obligations.
EOR Cost Calculator FAQ
Common questions about hiring costs in Indonesia through an Employer of Record.
All employers in Indonesia must enroll employees in BPJS Ketenagakerjaan (workforce social security) covering JHT (old-age savings, 3.7% employer + 2% employee), JP (pension, 2% employer + 1% employee, capped at IDR 11,086,300), JKK (work accident, 0.24% employer), and JKM (death benefit, 0.3% employer). Additionally, BPJS Kesehatan (national health insurance) requires 4% employer + 1% employee, with the salary base capped at IDR 12,000,000.
The EOR fee is 10% of the total monthly employer cost (gross salary plus all statutory employer contributions), with a minimum of USD 49.99 and a maximum of USD 250 per employee per month. For lower salaries the fee is proportionally smaller, making it far more affordable than flat-fee EOR providers who typically charge $400-$600 regardless of salary level.
Setting up a PT PMA (foreign-owned limited liability company) in Indonesia requires BKPM approval, notarial deed, company registration, tax ID (NPWP), BPJS registration, and a local bank account. It typically costs USD 20,000-40,000 and takes 2-4 months. Through RecruitGo EOR, you can onboard an employee in 3-5 business days with zero setup cost. If you later choose to establish your own entity, we assist with the transition.
PPh 21 TER (Tarif Efektif Rata-rata) is the simplified monthly withholding method introduced by PP 58/2023, effective January 2024. Instead of calculating progressive tax each month, the employer applies a single effective rate based on the employee's monthly bruto income and PTKP category. The TER rate is looked up from government-published tables (Categories A, B, C). At year-end, the actual annual tax is reconciled using the progressive brackets (5%-35%), and any difference is adjusted in December.
PTKP (Penghasilan Tidak Kena Pajak) is the non-taxable income threshold. It depends on marital status and number of dependents: TK/0 (single, no dependents) = IDR 54,000,000/year; each dependent adds IDR 4,500,000 up to 3 dependents; married status (K/) adds IDR 4,500,000. PTKP determines which TER category (A, B, or C) applies for monthly withholding, and directly reduces taxable income in the annual progressive calculation.
No. THR (Tunjangan Hari Raya) is a mandatory religious holiday bonus equal to one month's salary for employees with 12+ months of service. It is typically paid before Eid al-Fitr (or the employee's religious holiday). THR is subject to PPh 21 tax but is not included in this monthly cost estimate. For a full annual cost projection including THR, contact our team.
RecruitGo handles all employer obligations in Indonesia: monthly BPJS Ketenagakerjaan and Kesehatan registration and contributions, PPh 21 withholding and e-Filing with the DJP (tax office), annual SPT 1721 filing, LKPM (investment activity reporting) to BKPM, employment agreements compliant with UU Cipta Kerja and PP 35/2021, and THR payment processing. We also manage termination compliance including severance calculations under the omnibus law.
Yes. This calculator uses 2026 statutory rates: BPJS Kesehatan at 5% (4% employer + 1% employee) with IDR 12,000,000 cap, BPJS Ketenagakerjaan rates per PP 44/2015 and PP 45/2015, JP cap of IDR 11,086,300 effective March 2026, and PPh 21 TER tables per PP 58/2023. Rates are reviewed when the government announces changes and updated promptly.
