Build your Indonesia team
With white-glove localized support. Starting at just $199/month.
Get compliant employment contracts, local payroll, and expert-backed onboarding, all in one place with our Employer of Record in Indonesia.
- Hire & pay without setting up a local entity
- Handle contractors and different types of employees, including full-time, part-time, hourly paid, daily paid, etc.
- Onboard in 3–5 business days
Schedule a demo
Trusted by global leaders across industries
Our clients include SaaS, logistics, e-commerce companies across sectors that are looking to grow their business globally. Become one of them.
Tap into Indonesia’s skilled talent pool
Skilled, English-speaking professionals
Tech, finance, support, you’ll find talent across every function
Cost-effective hiring
Competitive salary levels compared to many global markets
Ready to work
A remote-ready workforce with global experience means less training, more output
Exploring entity setup in Indonesia for hiring? Think again.
It’s costly, time-consuming, and requires multiple registrations.
Why figure out compliance on your own?
Employment contracts, payroll setup, statutory benefits, and labor law requirements all require local expertise.
Payroll would mean more than just payouts
It involves applying for a tax identification number, withholding income tax on a progressive scale, contributing to social security, and meeting monthly reporting deadlines.
No need to set up a legal entity
With us, you can onboard employees or contractors legally with minimal delays and risk, and help get your global team off the ground effortlessly and at speed.
3–5 days onboarding with employment contract, payroll, and tax setup ready to go.
Employment contracts
We can help prepare an employment contract that must follow the Manpower Law, as amended, the Government Regulations, and other statutes regarding industrial relations dispute settlement and Labour Unions. They may either be of fixed-term, which can be time-based or project-based.
Time-based fixed-term employment contracts can be of a maximum of five years, including any possible extensions thereof, unless the contract is project-based, in which case the employee can be employed until the work or project is completed. ) or permanent (oral or written with appointment letter),
Background checks
Checks may include education and past employment, criminal records under which a statement of good behaviour may be required from the employee (SKCK), which, though, does not indicate whether the employee has a criminal record or not, but will confirm if the employee is not undergoing any criminal proceeding, as national criminal records are not available. Further, checks may include brief credit history/financial checks, and social media reviews to assess candidate suitability and professional conduct.
Talent discovery
Access Indonesia’s growing pool of educated, employable talent across sectors like manufacturing, services, education, and technology.
Visa & work permits
Foreign employees need both a work visa (visitor visa or VITAS ) along a stay permit, which is typically a Temporary Stay Permit (ITAS). While the visitor visa is valid for up to 180 days, the VITAS is valid for up to 10 years, 5 years, 4 years, 2 years, 1 year, or 6 months 10 years. For work purposes, ITAS is available in durations of 180 days, 1 year, or 2 years.
The following services are available as add-ons, based on your hiring needs. Please contact us for more information on the availability of these services as per local laws.
Your team gets paid right, every time
Salary structuring
Payroll systems must comply with labor laws covering wages, keeping in mind the province-specific minimum wage compliance, social security benefits, which mainly consist of the BPJS health programme and employment programme. , various leave entitlements, overtime payment, religious holiday allowance (THR ), termination-related payments, etc.
Taxes
Employees pay progressive income tax from 5% to 30%, plus 2% social security.
Tax reporting is monthly, with withheld income taxes due by the 10th of the following month.
Payouts
Employees are typically paid in Thai Baht (THB) via bank transfer, with payslips generated monthly. Payroll cycles are aligned with tax deadlines and public holidays.
We strive to follow every rule to the letter
Social security benefits are administered by the Social Security Administration Board (BPJS), which mainly consists of the BPJS health programme and employment programme, and are mandatory for both local and qualifying foreign employees, with rates and caps updated regularly.
BPJS Kesehatan (healthcare)
Under the health programme, the BPJS manages the health insurance of employees.
BPJS Ketenagakerjaan (employment security)
Under the employment programme, BPJS manages the following:
- Work accident insurance (JKK)
- Death benefit (JKM)
- Old-age benefit (JHT)
- Pension (JP)
Employers must register their employees in both programmes, although the contributions are payable by both employers and employees, except for occupational accident or illness and life insurance, where all contributions are paid by employers
We stay ahead, so you never fall behind
Employment Laws
Employment laws in Indonesia consist of comprehensive primary and secondary legislation. The main statutes are the Law No. 13/2003, regarding manpower, as amended by Law No. 6/2023, which ratified Government Regulation in Lieu of Law No. 2 of 2022 regarding job creation.
The government has issued the following regulations to implement the Labour Law:
Government Regulation No. 35/2021, dated 2 February 2021, regarding fixed-term employment agreements, outsourcing, working hours and rest hours, and termination of employment (GR 35/2021); and
Government Regulation No. 36/2021, dated 2 February 2021, regarding wages (GR 36/2021).
The other main statutes are Law No. 2/2004, dated 14 January 2004, regarding industrial relations dispute settlement, and Law No. 21/2000, dated 4 August 2000, regarding labour unions.
Worker classification & employment contract
An employment contract in Indonesia can be either a fixed-term or permanent or Part-time contract.
Fixed-term employment agreements are subject to stricter requirements compared to indefinite-term employment agreements. A fixed-term employment agreement must be in writing in the Indonesian language or in a bilingual format. Additionally, a fixed-term employment agreement cannot include a probationary period.
The types of work that can be performed by a fixed-term employee under a fixed-term employment agreement are either time-based or project-based, or daily/hourly-based.
For time-based work, the work must fulfil the following criteria: work that can be completed within a short period; seasonal work; and work that is related to a new product, new activity, or a product that is still in the experimental or trial stage.
For project-based work, the work must fulfil the following criteria: work that can be completed at one time, or temporary work.
Indefinite-term employees are employees who do not fall into the category of fixed-term employees. This type of worker is also known as a permanent worker. If a permanent worker is hired without a written employment contract, the employer must issue an appointment letter.
Misclassification penalties
Incorrectly classifying workers can result in fines related to tax evasion, penalties imposed by the social security authorities, back payments, regularisation claims, co-employment claims etc.,
Your employees get what they’re owed
Annual leaves
Employees are entitled to a Minimum of 12 working days of paid leave per year; unused leave is not paid out.
Sick leaves
If an employee suffers from prolonged sickness, their employer must pay full wages for the first four months of sick leave, 75% of wages for the second four months, 50% for the third four months, and 25% thereafter, until the employer terminates the employment contract.
Companies can have their policy around the requirement of a medical certificate for sick leave.
Further, female employees are not obliged to work on the first and second days of menstruation if they feel sick and provide proper notification to the employer.
Maternity leave
Female employees are entitled to three months’ paid leave, with at least half taken after childbirth.
A female worker/ labourer who has a miscarriage is entitled to a period of rest of one-and-a-half months or a period of rest as stated in the medical statement issued by the obstetrician or midwife.
Leave of absence/ other leaves
Employees are entitled to take the following leaves:
- Marriage: three days;
- Marriage of the employee’s child: two days;
- Circumcision or baptism of an employee’s child: two days;
- Employee’s wife giving birth or suffering a miscarriage: two days;
- Death of employee’s partner, parents, parent-in-law, children or step-children: two days;
- Death of other family members living in the same house: one day.
Letting go is hard; doing it wrong is worse. We know how to do this well and compliantly
Notice periods & approval
Written notice must be made in the form of a notification letter duly served to the employee 14 working days before the effective date of termination, at the latest.
Grounds for termination
Though there can be numerous grounds like redundancy, code of conduct violations, or breach of contract, the basic policy of Indonesian labour law is that the dismissal of an employee should be prevented or even, in some cases, prohibited. Termination is prohibited for reasons like pregnancy, illness, or union membership.
The Labour Court must approve every termination of employment unless the termination is agreed to or otherwise not disputed by the employee.
If the employee does not object, the termination only needs to be reported to the local Manpower Service Office. Otherwise, the objection from the employee must be made after receipt of the notification letter. If the employee disagrees with the notice of termination (eg, if no MTA is signed), the termination process would then involve:
1st Step- bipartite negotiation; 2nd Step- non-binding mediation and If the first two steps fail one after the other, then the Labour Court approval is required.
Severance & final payouts
Termination of employment gives rise to termination entitlements of amounts determined as per the tenure of the employee with the company. The entitlements include: Severance pay and Long-service pay.
Other compensation– Compensation for annual leave to which the employee is entitled but that has not been taken or forfeited, any costs or expenses incurred in returning the employee and their family to the place where they were recruited (if applicable) and any other matters agreed to in the employment agreement, company regulation or collective labour agreement (CLA). Further, employees may be entitled to separation pay, for which the amount is as contractually agreed with the employer.
PRICING
Transparent. Trusted. Scalable.
Employer of Record
(EOR)
Hire, pay and manage employees
Starts at
$199
per employee/month
Features
- Local employment agreements
- Personalised onboarding support
- Process payroll in 70+ currencies
- Labor law and tax compliance
- Benefits administration options
- Dedicated account managers
- Help center access
- Unified dashboard + third-party integrations
Agent of Record
(AOR)
Engage, pay and manage contractors
Starts at
$99
per contractor/month
Features
- Support with contracts
- Streamlined contractor onboarding
- Compliant contractor payments in 70+ currencies
- Support mitigating misclassification risks
- Dedicated account managers
- Help center access
- Unified dashboard + third-party integrations
Contractor Management System (CMS)
Handle contractor payments
Starts at
$19
per contractor/month
Features
- Contractor payments in 70+ currencies
- Invoice creation and tracking
- Expense submission and approvals
- Downloadable payment history
- Unified dashboard + integrations
- Mobile app access & localised support
Trusted by businesses worldwide
Jon Santavy
Managing Partner, Simwell
Payoneer Workforce Management has been a game-changer for us, completely transforming the way we manage our global team. Payoneer Workforce Management’s digital onboarding has made our international payments as easy as our domestic ones. Payroll management that used to take hours is now error-free and takes just a few minutes.
Lavinia Davison
Global Head of Talent & Operations, OpenSolar
Payoneer Workforce Management, has been a key partner in our international expansion. Their seamless onboarding process and compliance expertise have allowed us to focus on our core mission which is to accelerate the world’s transition from fossil fuels to solar energy.
Brian Butcher
EVP, Corporate Development, PureRed
Payoneer Workforce Management made our team expansion possible, handling the complex onboarding and payroll processes across six different countries with ease. Their local expertise ensured our compliance, letting us focus on what we do best—serving our clients.
Bret Michaelsen
Human Resources Director, VRP Consulting
Payoneer Workforce Management’s solutions empowered us to scale our workforce globally with ease, ensuring timely payroll, compliance, and a seamless onboarding experience—all on one powerful platform.
Shaik Mohammed Shabaz
Head of Human Resources & Administration, Microsense
Payoneer Workforce Management simplified our contractor engagement from start to finish. Their platform covered onboarding, payments, and compliance, making our expansion into new markets practically frictionless.
Why do companies choose Payoneer Workforce Management to hire in Indonesia?
Transparent, Flat Pricing
Starting at $199 for EOR with 100% transparency in the fee structure. Consistent cost regardless of seniority, role type, or team size
White-Glove Onboarding
Dedicated account manager for both you & the employees. Enjoy localized support across time zones
Additional Local Support
Background checks, international health insurance, expat support device provisioning, and co-working access
Deep Integrations
Integrate with 70+ tools across HRIS, accounting, and time-tracking. No process disruption. Just smooth operations
Mobile App
Stay in control wherever you are. The Payoneer Workforce Management app supports both employers and contractors
User-Friendly Interface
With an interface that’s clean and ready to go, Payoneer Workforce Management is designed for busy teams that dislike a steep learning curve
The all-in-one platform for global hiring
160+
Countries covered
70
Currencies for payroll
24×5
Dedicated Support
100%
Transparency in fees
Frequently asked questions (FAQs)
Payoneer Workforce Management’s Employer of Record in Indonesia enables businesses to hire employees without setting up a local entity. The service covers employment contracts, payroll, statutory contributions, and compliance with local labor laws while you manage the day-to-day work.
EOR pricing starts at $199/month per employee. Contractor management starts at $19/month..
No. Payoneer Workforce Management acts as the legal employer, allowing you to hire and pay employees in Indonesia without incorporating locally.
Statutory benefits include social security (health insurance, injury, old-age, pension, death), paid leaves, religious holiday pay, and termination payments. Additional perks can be added per company policy.
Yes. The Employer of Record model is recognized in Indonesia, with the EOR becoming the official employer for compliance, payroll, and HR administration while you direct day-to-day activities.
Onboarding timelines depend on document readiness and approvals, but we can typically prepare employment contracts, payroll, and statutory registrations within 3 to 5 business days.
They may either be of fixed-term, which can be time-based or project-based. Time-based fixed-term employment contracts can be of a maximum of five years, including any possible extensions thereof, unless the contract is project-based, in which case the employee can be employed until the work or project is completed. Or can be permanent (oral or written with an appointment letter)
The information on this page reflects the details available at the time of publication. For the most up-to-date information, please consult a Payoneer Workforce Management representative or account executive. Skuad Pte Limited (a Payoneer group company) and its affiliates & subsidiaries shall provide EoR, AoR, and contractor management services.