The individual income tax ranges from 5% to 35%. Income tax is calculated according to progressive rates.
Gross Annual Income (IDR) | 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% |
The employer cost is generally estimated at 4.24% of the employee salary.
Standard working hours are 8 hours per day for 5 working days, and 7 hours per day for 6 working days, totalling 40 hours per week. The standard work week is from Monday to Friday.
Overtime in Indonesia is complex. Overtime payment is not mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime per day, and 18 hours of overtime per week. Overtime is paid between 150% to 400% of hourly wage depending on if it is a regular work day or weekend as well as the number of overtime hours worked.
For employees working on the weekend or public holiday overtime is calculated as follows: