What is the payroll cycle in Indonesia?

Monthly payroll cycle. Payroll is paid in IDR (Indonesian rupiah).

Can I run payroll in Indonesia without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Indonesia labor law and runs local payroll, no entity required.

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Payroll in Indonesia

Payroll in Indonesia runs in IDR (Indonesian rupiah). Monthly payroll cycle. The Religious Holiday Allowance (THR) is mandatory, equal to one month's salary and pro-rated under one year of service, paid ahead of the employee's major religious holiday. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get an Indonesia payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

IDR, Indonesian rupiah

Payroll cycle

Monthly payroll cycle

Working week

Normal hours are 40 per week, either 7 hours a day over 6 days or 8 hours a day over 5 days; overtime is capped at 4 hours a day and 18 hours a week and paid at statutory multipliers

Minimum wage

Minimum wages are set annually by province (UMP) and sometimes by regency or city (UMK), so the applicable figure depends on the work location

13th-month

The Religious Holiday Allowance (THR) is mandatory, equal to one month's salary and pro-rated under one year of service, paid ahead of the employee's major religious holiday

Employer cost

Employer BPJS Ketenagakerjaan and BPJS Kesehatan contributions commonly total around 10% to 11% or more of salary, varying by programme and risk category with caps on some components

Probation

Probation is capped at 3 months for permanent (PKWTT) employees and is not permitted for fixed-term (PKWT) contracts

Notice period

Termination requires cause; severance, tenure pay and compensation of rights are calculated by statutory formula under Government Regulation 35/2021 based on service and reason

Two ways to run payroll in Indonesia

Own-entity payroll

For long-term presence in Indonesia. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on South-Eastern Asia time.

EOR-run payroll

No entity in Indonesia? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks (eor), no local incorporation.

Compliance essentials in Indonesia

THR religious-holiday bonus (one month) is mandatory
Severance under the Omnibus Law can be substantial
BPJS health and employment social security are required
Provincial minimum wages vary widely
Large, young, fast-growing digital workforce

Get a payroll quote for Indonesia

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Indonesia hiring plan

Send the role, a selected worker or an existing-team requirement in Indonesia. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

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Deeper guide

Hiring guide: Indonesia →

Employ without entity

EOR services →

All countries

Global payroll overview →