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HR & Payroll

Calculating Employee Salary During Unpaid Leave in Indonesia

Employers in Indonesia can deduct wages during agreed unpaid leave, provided the arrangement complies with Indonesian employment law. The same general principles apply to...

Payroll and Tax Treatment of Employee Transfers Between Group Companies in Indonesia

Moving an employee between two Indonesian companies in the same group is not an internal reassignment. Each PT PMA is a separate employer, employee...

Tax Treatment of Employee Allowances and Benefits in Kind in Indonesia

Employee allowances and non-cash benefits are generally taxable in Indonesia, but their treatment depends on how the employer provides...

In-House vs Outsourced Payroll for Companies in Indonesia

Foreign-owned companies in Indonesia can run payroll internally or use an external payroll provider. The main question is whether...

How to Calculate Final Pay for Departing Employees in Indonesia

Final pay in Indonesia is calculated by adding salary already earned, outstanding employment rights, and any termination payment due...

How to Process Employee Bonuses and Variable Compensation in Indonesia

Bonuses, commissions, and incentive payments made to employees in Indonesia can affect PPh 21 withholding, social security contributions, and...

Can You Hire Employees in Indonesia Without Establishing a Legal Entity?

Foreign companies can hire people in Indonesia without first setting up their own Indonesian company. One option is to...

Payroll Services in Indonesia for Foreign Companies

Foreign companies with employees in Indonesia can outsource payroll calculations and administration to a local provider rather than processing...