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Employees in Indonesia Are Registered Under the BPJS Law

Employee Benefits in Indonesia Employees working and living in Indonesia, including the ex-pats for a minimum of 6 months, must register in the BPJS for their employee benefits in Indonesia.


What Is the BPJS Law?

The local government went through policy reform in 2011 for the National Social Security System. The Government approved Law No. 24. This law pertains to the Social Security Organizing Body (Badan Penyelenggara Jaminan Sosial or BPJS) (the “BPJS Law”). It aims to meet the local population’s basic needs.

The programs mandated under the BPJS Law include the following:

  • Old-Age security
  • Pension Security
  • Health Care Security
  • Work Accident Security
  • Death Security


Employee Benefits in Indonesia

If you are working and living in Indonesia, you will be entitled to the following benefits. These benefits are part of your terms of employment and the basic rights of employees working in the country:

  • 12 working days paid annual leave (after one year of continuous service)
  • Overtime pay for those working on public holidays
  • Paid sick leave
  • Two days’ menstrual leave for female employees
  • Paid time off for employees experiencing prolonged sickness
  • Paid maternity leave
  • Two days paid paternity leave for male workers
  • Parents under a surrogacy agreement will be entitled to the same maternal and paternal rights as the parents of naturally born children.
  • Parents under adopted children will be entitled to the same maternal and paternal rights as the parents of naturally born children.
  • Parental rights paid family leave for occasions that include a child’s marriage, circumcision, baptism, or death.

Under the Labour of Law, part-time workers are entitled to the same rights as those working full-time.


The Right to Privacy

Indonesia has several laws that protect data privacy in several specific areas, namely banking and taxes. However, there are no specific laws pertaining to an employee’s rights to privacy.


Severance Payments

Severance payments in Indonesia are part of the employee’s entitlement and benefits. The amount that is paid out will vary depending on the reason for the dismissal. The types of severance pay available are as follows:

  • Standard severance pay
  • Service appreciation pay
  • Compensation

If an employer wants to dismiss or make an employee redundant, they must first seek approval from the Industrial Relations Court.

Employee Benefits in Indonesia