Indonesia

The most important benefit for employees in Indonesia is medical. Costs for medical are high and healthcare is considered a priority.

Other benefits in order of importance are death, retirement and disability.

Asinta Partner
Pondra Permana

Integra

More Info

Country Insight

Try Rendang and Nasi Goreng (Fried Rice). Rendang was voted the most delicious food in the world by CNNGo´s Readers List. It is a traditional food from West Sumatra.

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Landscape changes of Employee Benefit policies and challenges of rising costs. Since 2014, Mandatory medical benefit was implemented. Those in formal employment pay a premium equivalent to 5% of their salary, with 4% payable by employers and 1% payable by employees. This program is top of former programs which are old age, workman compensation, and death benefit. On 30 June 2015, the Indonesian government has issued Government Regulation on the mandatory pension benefit.  1% of their salary payable by employee and 2% payable by employers.

Average Cost for Employer Sponsored Benefits

The average cost for employee is around 18 – 20% of basic salary. Minimum basic salary is stated by the government and varies from province to province and industrial risk classification.

Advice

Knowledge about the culture and market practices of Indonesia is important for those entering the Indonesian market for the first time. Rules and regulations differ from province to province, so be aware of that as well.

Surprising Fact

Landscape changes of Employee Benefit policies and challenges of rising costs. Since 2014, Mandatory medical benefit was implemented. Those in formal employment pay a premium equivalent to 5% of their salary, with 4% payable by employers and 1% payable by employees. This program is top of former programs which are old age, workman compensation, and death benefit. On 30 June 2015, the Indonesian government has issued Government Regulation on the mandatory pension benefit.  1% of their salary payable by employee and 2% payable by employers.

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