Indonesia

[Updated 4/16/24] Typical supplementary employee benefits in Indonesia include health insurance, retirement plans, paid time off (vacation, sick leaves, holidays), employee wellness programs, life insurance, employee assistance programs, flexible work arrangements, education and training opportunities, employee discounts, and perks, and maternity and paternity leave.

Asinta Partner
Violetha Manurung

Howden Indonesia

More Info

Mandatory benefits

Mandatory employee benefits in Indonesia include:

  • JAMSOSTEK – Similar to Social Security for labor, this program typically provides benefits for death, accident at work/workers’ compensation, unemployment benefits, and a pension annuity plan.
  • BPJS KESEHATAN – Similar to compulsory health/hospitalization benefits, this allows inpatient and outpatient care to clinics and hospitals. This plan is usually called a managed-care program, and most benefits provide no limits. Still, individuals should follow procedures such as first seeking care from a GP and not going directly to a specialist.

Supplementary employee benefits

Medical

For many private sectors, due to growing demands from Indonesian employees and the expanding obligations from Manpower regulations, companies must implement high-quality employee benefit plans that promote the attraction and retention of qualified and motivated staff. At the same time, managing the spiraling costs of those obligations is necessary.

Term Life and Accident Insurance

These benefits are commonplace across many employment sectors and are relatively inexpensive benefits to put in place.

 

This information is provided by Howden Indonesia. If you need support with your employee benefits in the country please reach out to Asinta, and we will put you in contact with the local experts at Howden.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

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