Hire, Pay and Manage Remote Teams in Indonesia

RecruitGo helps businesses of all sizes to legally hire, pay and manage remote employees in Indonesia. From recruitment to payroll management, we provide end-to-end support to ensure a smooth and successful hiring process.

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Hire employees in Indonesia without setting up a local entity

RecruitGo takes care of all legal and HR aspects, ensuring compliance and smooth operations for hiring remote teams in Indonesia. Expand your team in Indonesia effortlessly and tap into the country's vast talent pool with RecruitGo as your trusted partner.

Your Easy Guide for Hiring in Indonesia

Navigate the tabs below for in-depth insights to hiring in Indonesia. From minimum wage to tax implications, leave policies, and termination laws, we've got you covered. Simplify the complexities and make informed decisions with RecruitGo.

Minimum Wage Requirements

The minimum wage in Indonesia ranges from IDR 1,958,169 (US$126) to IDR 4,901,798 (US$316) per month, subject to the specific regulations set by each local province. The wage amount depends on the region where the employer's company is incorporated.

Personal Income Tax Structure

Income tax in Indonesia is calculated based on progressive rates, which means the tax rate increases with higher income levels. The applicable tax rate depends on the gross annual income of the individual taxpayer.

Gross Annual Income (IDR) and the Tax Rate (%)

- Up to IDR 50 million: 5%
- From IDR 60 million to IDR 250 million: 15%
- From IDR 250 million to IDR 500 million: 25%
- From IDR 500 million to IDR 5 billion: 30%
- Above IDR 5 billion: 35%

Employer Expenses

The total employer cost is generally estimated at 4.24% of the employee's salary. These contributions cover various benefits and protections for employees, ensuring their well-being and financial security.

Estimated Employer Cost Breakdown in Indonesia:

  • Provident Fund: 3.70%
  • Death Security: 0.30%
  • Work-related Accident Benefit: 0.24%
  • Healthcare and Social Security: IDR 480,000
  • Pension Fund: IDR 191,192 (applicable for monthly gross salaries higher than IDR 9,559,600)

Overtime Compensation & Maximum Hours

Standard working hours are 8 hours per day for 5 working days, and 7 hours per day for 6 working days, making a total of 40 hours per week. The standard workweek is from Monday to Friday.

Overtime in Indonesia is subject to specific rules. While overtime payment is not mandatory, employees may be eligible for overtime compensation for hours worked outside of standard work hours. The maximum overtime allowed is 4 hours per day and 18 hours per week. Here are the overtime rates:

For regular work days:

- 150% of the hourly rate, the first 1 hours.
- 200% of the hourly rate, the following hours.

For weekends or public holidays:

- 200% of the hourly rate for the first 8 hours of overtime.
- 300% of the hourly rate for the following 1 hour of overtime.
- 400% of the hourly rate for the subsequent 2 hours of overtime.

The actual overtime pay depends on whether it is a regular workday or a weekend/public holiday, as well as the number of overtime hours worked, providing fair compensation for extra working hours.

Maternity Leave

Pregnant employees are entitled to 3 months of paid maternity leave. Out of the total duration, 1.5 months must be taken before the child's birth, and the remaining 1.5 months must be taken after the child is born.

During the maternity leave period, the employee will receive 100% of their regular salary, and the employer is responsible for providing this pay. Unfortunately, the employee cannot extend the maternity leave beyond the specified 3-month period.

Paternity Leave

Employees are entitled to 2 days of paid paternity leave, during which they will receive 100% of their average salary. The employer will be responsible for providing this pay.

Paternity leave cannot be extended beyond the specified 2-day period.

Parental Leave

In Indonesia, there is no statutory provision for parental leave. Nevertheless, employees may qualify for both maternity leave and paternity leave benefits.

Sick Leave

In Indonesia, sick leave does not have a maximum limit on the number of days an employee can take. The employer provides sick leave with different pay rates based on the length of the leave:

- For the first 4 months, the employee receives 100% of their base salary.
- From 4 to 8 months, the employee receives 75% of their base salary.
- From 8 to 12 months, the employee receives 50% of their base salary.
- From 12 to 13 months, the employee receives 25% of their base salary.

This arrangement remains in effect until the employer decides to terminate the employment contract.

Employee Termination Procedures

Terminations in Indonesia can be complex and must adhere to the country's specific rules and regulations. Employers are responsible for managing off-boarding procedures in coordination with key stakeholders, and this process may involve additional fees and specific steps depending on the termination case.

It is important to note that Indonesia does not allow at-will terminations for employers beyond the probation period. Terminations must be justified with valid reasons, and compliant terminations can occur through various means, including:

- Voluntary resignation by the employee
- Mutual agreement between the parties
- Termination due to the worker's demise
- Completion of assigned tasks
- Contract expiration

Unilateral termination by the employer can be based on the following grounds:

- Termination during the probation period
- Objective reasons for termination
- Dismissal for disciplinary reasons
- Termination due to unsuitability for the job
- Termination during a company merger or acquisition
- Termination due to bankruptcy
- Inability to work due to medical conditions

Notice Requirement

In Indonesia, there is no legally stipulated minimum notice period for terminations. However, customary practices for termination by the employer are as follows:

- Notice during the probation period: 7 days
- Minimum notice period: 30 days

For terminations initiated by the employee, the customary minimum notice period is also 30 days.

Severance for Employees

In Indonesia, all employees who are terminated are entitled to severance pay. Severance pay will depend on the length of employment and base salary.

Length of employment and Severance pay:

- For less than 1 year severance pay is 1 month wage
- Between 1 to 2 years severance pay is 2 months wage
- Between 2 to 3 years severance pay is 3 months wage
- Between 3 to 4 years severance pay is 4 months wage
- Between 4 to 5 years severance pay is 5 months wage
- Between 5 to 6 years severance pay is 6 months wage
- Between 6 to 7 years severance pay is 7 months wage
- Between 7 to 8 years severance pay is 8 months wages
- Above 8 years severance pay is 9 months wage

To protect you from unforeseen financial risks related to terminations, RecruitGo implements a Severance Accrual in all employment agreements. Our expert team ensures compliance with legal entitlements and best practices. If an employee resigns or is not eligible for severance, any unused amounts will be refunded to you.

Paid Time Off

Full-time employees enjoy 12 days of paid time off (PTO) annually, accruing 1 day per month. Eligibility for annual leave begins after completing 1 year of employment.

However, part-time employees are not entitled to PTO benefits.

Public Holidays

In Indonesia, there are 15 national holidays celebrated, including:

- New Year's Day
- Lunar New Year
- Ascension of the Prophet Muhammad
- Silence Day
- Good Friday
- Eid al Fitr
- Labor Day
- Ascension of Jesus Christ
- Pancasila Day
- Vesak Day
- Eid al Adha
- Islamic New Year
- Indonesia Independence Day
- Prophet Muhammad's Birthday
- Christmas Day


Our streamlined onboarding process is completed within 3 to 5 business days.

To ensure a smooth start, employees are required to submit all necessary documents before their designated start date. Mandatory document submission is not allowed after the start date, while optional documents can be submitted later.

Employment Contract Details

Contracts must be in Indonesian language and latin alphabet, and can be bilingual. They must be in writing and signed by both parties.

A contract should include the following details:

- Name, address of the company, and nature of business
- Position of the employee
- Place of work
- Salary and payment method
- Terms of employment, outlining the rights and obligations of both the employer and employee
- Start date and period of the employment agreement
- Place and date the employment agreement is made.

Probation Period

Probation periods are not mandatory in Indonesia. For indefinite contracts, the probation period is typically 3 months. There is no minimum length for definite contracts, and fixed-term contracts cannot have probation periods.

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What we do?

What to expect when working with RecruitGo

Simplify your operations, expand into new markets, and achieve your growth goals with ease. Embrace the future of work and unlock success with RecruitGo as your trusted partner.

Employer of Record (EOR) Service

RecruitGo acts as your Employer of Record in Indonesia, eliminating the need for you to set up and manage an overseas legal entity. We take care of all legal employment responsibilities, ensuring compliance with local regulations and seamless HR processes, allowing you to concentrate on business growth.

Simplify Your Payroll with RecruitGo's Consolidated Solutions

At RecruitGo, we take the stress out of payroll management, ensuring your employees receive their salaries on time and in compliance with local regulations. Our expert team delivers fast and accurate processing, calculating salaries, overtime, benefits, and employment taxes with precision.

Let Our Experts Handle Compliance Risks for You

Experience dedicated support of our compliance experts who can assist you with everything around smooth employment. From employment contracts to taxes and benefits, everything’s covered under RecruitGo


How does working with RecruitGo look like?

In a nutshell, we hire, pay, and manage employees on your behalf. The process is as simple:


Consultation: Schedule a consultation with our team to discuss your hiring and workforce management needs. We will understand your requirements and provide tailored solutions.


Proposal: Receive a proposal outlining the services we can offer, including Employer of Record, Payroll, Compliance, and more. Our proposal will be customized to meet your specific business objectives.


Onboarding: Once you choose RecruitGo as your partner, we will guide you through the onboarding process. We'll handle all the paperwork and legal formalities, making the setup seamless and efficient.


Talent Acquisition: Our expert recruiters will start sourcing the best talent for your positions. We have a vast network and access to a diverse pool of skilled professionals.


Employee Management: As your Employer of Record, we take care of all HR-related tasks, from employee contracts to payroll processing and benefits administration.


Compliance and Regulations: Stay compliant with local laws and regulations. We will handle all employment-related compliance matters, ensuring your peace of mind.


Payroll Management: Leave the complexities of payroll processing to us. We ensure accurate and timely salary payments for your employees.


Support and Growth: Our dedicated team provides ongoing support, addressing any HR-related queries and ensuring your workforce's success and growth.

Unlock the Full Potential of Your Benefits Strategy with RecruitGo

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Comprehensive Solutions:

Leverage our expertise to design a tailored benefits program that meets the needs of your international workforce and complies with local laws and regulations.

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People-Driven Approach:

With a focus on employee well-being, our solutions foster a culture of appreciation and support, boosting morale, and enhancing retention rates.

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Simplified Administration:

Our expert service streamlines the benefits administration process, making it easy for you to manage your global benefits strategy efficiently.

Benefits Strategy for employee and remote team with RecruitGo
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What we do for you

What roles can we help you to hire for

We help you find a diverse range of talent from the Indonesia to cater to your specific hiring needs. Whether you require software developers, hospitality staff, app developers, CSRs, digital marketers, or civil engineers, let us assist you in building a strong and capable team.

Software Developers

We specialize in providing top-notch software developers for various industries in Indonesia. We have a proven track record of success in finding the right candidate for our clients and have been providing software development services for over a decade.

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Hospitality Staff

We understand the importance of providing quality hospitality staff for the success of any hospitality business. We have a wide network of experienced and qualified hospitality professionals who are ready to join your organization.

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App Developer

Need an app that stands out? Our experienced app developers have the expertise to bring your ideas to life. From concept to deployment, we create innovative and user-friendly applications that drive engagement and success.

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Customer Service Representatives

Deliver exceptional customer experiences with our dedicated customer service representatives. Our team is trained to provide top-notch support and ensure customer satisfaction, helping you build strong relationships with your clients.

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Digital Marketer

Maximize your online presence and drive results with our expert digital marketers. From strategy development to campaign execution, we have the knowledge and skills to help you reach your target audience effectively.

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Civil Engineers

Our team of experts is dedicated to finding the right candidate for your organization and ensuring that your infrastructure needs are met. We have a proven track record of success in finding the right civil engineer for our clients and have a wide network of experienced and qualified civil engineers.

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Hamzah Jasim Alomairi
Bridges LLC. (United Arab Emirates)

I would recommend RecruitGo on my behalf due to the excellent job you have done in managing Bridges llc account for RecruitGo. You are certainly welcome Emma! Great service overall!

Stephen Congmon
Otsuka Chemical

The company is very professional. RecruitGo always gives good advice and solutions to our problems.

Vipinkumar Ramakrishnan

Really a great partner to work with. Sharp on timelines quick responses, I'm very much happy with the Philippines team - America, Jilian, Gabe - for the continuous support.

Francois Myburgh

As always, we love working with RecruitGo!

David Catindoy

RecruitGo team is such a pleasure to work with. They understand what we need as a business and provided us recommendations that are tailored to our needs. I really appreciate the effort that the team has put in to go above and beyond to nurture the relationship and meet certain demands of our business. I highly recommend RecruitGo and it's really nice to have a partner that you can rely on.

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