Indonesia EOR Cost Calculator
Find out what it costs to employ someone in Indonesia through an Employer of Record. Enter a gross monthly salary to see BPJS contributions, PPh 21 withholding and the EOR fee, using the latest rates.
- BPJS Ketenagakerjaan: PP 44 & 45/2015
- BPJS Kesehatan: 4% + 1%
- PPh 21 TER: PP 58/2023
- Tax brackets: UU HPP
The role
PTKP = non-taxable income. TK = single, K = married. Number = dependents (0-3).
2026 Rates: BPJS Kes 5% (4% ER + 1% EE), JHT 5.7%, JP 3%, JKK 0.24%, JKM 0.3%, PPh 21 TER method.
Results
For one employee, per month
- Gross salary
- BPJS Kesehatan
- JHT
- JP
- JKK + JKM
- EOR fee
| Gross salary | Rp 15,000,000 |
|---|---|
| BPJS Kesehatan4%, capped at IDR 12M base | +Rp 480,000 |
| JHT (old-age savings)3.7% | +Rp 555,000 |
| JP (pension)2%, capped at IDR 11,086,300 | +Rp 221,726 |
| JKK + JKM0.24% work accident, 0.3% death benefit | +Rp 81,000 |
| RecruitGo EOR fee15%, min $99 · 1 USD = Rp 17,500 | +Rp 2,450,659 |
| Total employer cost | Rp 18,788,385 |
Estimate based on 2026 statutory rates. Assumes permanent employee, Indonesian tax resident, PTKP status TK/0. Excludes THR, bonuses, allowances, overtime, and optional benefits. Exchange rate used: 1 USD = Rp 17,500, to convert the USD 99 minimum EOR fee.
What your employee takes home
Their net pay per month, useful when you agree the offer
| Gross salary | Rp 15,000,000 |
|---|---|
| BPJS Kesehatan1%, capped at IDR 12M base | −Rp 120,000 |
| JHT2% | −Rp 300,000 |
| JP1%, capped | −Rp 110,863 |
| PPh 21TER category A, 7% | −Rp 1,089,270 |
| Net take-home pay | Rp 13,379,867 |
- Net pay as a share of gross
- 89%
- Your cost for every Rp 1 they take home
- Rp 1.40
These come out of the salary, not on top of it. RecruitGo withholds them and remits them to BPJS and the DJP.
Hire through RecruitGo
No PT PMA needed. We employ them for you.
- Salary, 12 months
- Rp 180,000,000
- BPJS employer contributions
- Rp 16,052,712
- RecruitGo EOR fee15%, min $99
- Rp 29,407,907
- Onboard an employee in 3 to 5 business days, with zero setup cost
- BPJS registration and contributions, PPh 21 withholding and e-Filing every month
- THR payment processing and severance calculations handled for you
EOR vs Setting Up a PT PMA
Your own PT PMA
- Setup costBKPM approval, notarial deed, registration
- $20K – $40K
- Time to first hireTo set up the company and register
- 2 – 4 months
- Payroll and complianceBPJS, PPh 21 and DJP filings, labor law
- Your team
Through RecruitGo EOR
- Setup costNo setup cost
- $0
- Time to first hireContract and onboarding included
- 3 – 5 business days
- Payroll and complianceRecruitGo runs payroll and every filing, monthly
- Handled for you
How it is computed
How your cost is worked out
Each figure above, computed from a monthly salary of Rp 15,000,000 using the 2026 rates.
BPJS Kesehatan
- Salary base: Rp 12,000,000, the IDR 12,000,000 cap.
- You pay 4%: Rp 480,000 a month. The employee pays 1% (Rp 120,000), withheld from their salary.
Source: BPJS Kesehatan: 5% premium (4% employer, 1% employee), salary base capped at IDR 12,000,000.
BPJS Ketenagakerjaan
- JHT (old-age savings), 3.7%: Rp 555,000.
- JP (pension), 2% up to IDR 11,086,300: Rp 221,726.
- JKK (work accident) 0.24% and JKM (death benefit) 0.3%: Rp 81,000.
- Your total: Rp 857,726 a month.
Source: BPJS Ketenagakerjaan programs under PP 44/2015 and PP 45/2015; JP cap effective March 2026.
PPh 21 income tax
- Not a cost to you. It comes out of the employee's salary, and RecruitGo withholds it and remits it to the DJP every month.
- Bruto income Rp 15,561,000 (salary plus the BPJS Kesehatan, JKK and JKM you pay), TER category A at 7%: Rp 1,089,270 a month.
- For the employee's side in full, use the Indonesia salary and tax calculator.
Source: PP 58/2023 (TER method), in effect from January 2024.
THR holiday allowance
- Not in the monthly figures above. THR is one month's salary for employees with 12 or more months of service, paid before Eid al-Fitr (or the employee's religious holiday).
- Budget Rp 15,000,000 a year for it, about Rp 1,250,000 a month.
- Read more in our guide to THR in Indonesia.
Source: Religious holiday allowance (THR): one month’s salary after 12 months of service.
RecruitGo EOR fee
- Total monthly payroll: Rp 16,337,726, the salary plus BPJS contributions.
- 15% of that is Rp 2,450,659. The USD 99 minimum is Rp 1,732,500 at 1 USD = Rp 17,500.
- The higher one applies: Rp 2,450,659 a month.
Source: RecruitGo EOR pricing: 15% of total monthly payroll or USD 99, whichever is higher.
Severance and termination
- Not a monthly cost, but an obligation if employment ends. Indonesian labor law sets notice, severance and final pay according to the reason for termination and length of service.
- RecruitGo manages termination compliance, including severance calculations under the omnibus law.
- To estimate an amount, use the Indonesia severance calculator.
Source: UU Cipta Kerja (omnibus law) and PP 35/2021.
Overview
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 21 to 27 percent above the gross salary for salaries between IDR 11 million and IDR 50 million, and higher at entry level, where the fee's USD 99 minimum is a larger share of pay. That makes 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 |
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 |
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% |
Transparent EOR Pricing in Indonesia
RecruitGo charges 15% of total monthly payroll or USD 99, whichever is higher, per employee per month. Total monthly payroll means gross salary plus all statutory employer contributions, so the fee scales with the role and junior hires cost less in EOR fees than senior ones.
The USD 99 minimum is converted at 1 USD = Rp 17,500, so it applies until total payroll reaches about IDR 11.5 million a month (USD 660). Above that, the fee is a straight percentage with no cap. Most EOR providers charge a flat USD 400 to 600 per employee per month regardless of salary, so for any role with total payroll below about USD 2,670 a month (roughly IDR 47 million), the percentage model costs less.
For example, a junior hire at IDR 8,000,000 per month pays the minimum, about IDR 1,730,000 (USD 99), rather than USD 400 or more. A mid-level hire at IDR 15,000,000 pays about IDR 2,450,000 (USD 140). A senior hire at IDR 80,000,000 pays about IDR 12,600,000 (USD 721).
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. If you already have an entity in Indonesia and only need payroll run for you, see our payroll service in Indonesia.
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 15% of total monthly payroll or USD 99, whichever is higher, per employee per month. Total monthly payroll means gross salary plus all statutory employer contributions. For junior and mid-level roles this is well below the USD 400 to 600 that flat-fee EOR providers typically charge regardless of salary. The fee only passes USD 400 once total payroll exceeds about USD 2,670 a month.
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.
