Hiring in Indonesia through an Employer of Record
An Indonesian employer pays most of the workforce social security programmes run by BPJS Ketenagakerjaan.
Employing someone in Indonesia through an Employer of Record costs their salary, plus 3.7 percent old age savings (jht), employer, 2 percent pension (jp), employer, 0.3 percent death benefit (jkm), plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. Major charges in this country had no official figure we could read, so that is a floor, not the full cost.
What does an employer pay on top of salary in Indonesia?
- 3.7% Old age savings (JHT), employer
- 2% Pension (JP), employer
- 0.3% Death benefit (JKM)
This is a floor, not the full cost: major employer charges in Indonesia are left out, as explained below.
Each charge, and what it is for
- Old age savings (JHT), employer: 3.7 percent of wages.
- Pension (JP), employer: 2 percent of wages up to a cap.
- Death benefit (JKM): 0.3 percent of wages, employer only.
Health insurance through BPJS Kesehatan and the work accident levy, which varies by risk class, are left out because no official page we could read states them clearly.
What does one employee in Indonesia cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote $699, Remundo from $498, Rivermate from $319, Skuad from $199, Teamed $599. Not published: Rippling.
Where these numbers come from
- Death benefit (JKM) on bpjsketenagakerjaan.go.id read
- Each vendor's own pricing page, linked from its name above.