Corporate DeskSign inSign up

Business

Indonesia — Business: Hiring Employees

Indonesian employers must enrol staff in BPJS Ketenagakerjaan and BPJS Kesehatan and pay the employer shares monthly.

VerifiedGovernment / official sourceBPJS Ketenagakerjaan and PwC Worldwide Tax SummariesLast reviewed: 2026-10-23

Key facts

  • The employer pays 3.7% of wages for old-age security (JHT) and 2% for pension (JP); the worker pays 2% for JHT.
  • Work accident (JKK) is paid by the employer at 0.24% to 1.74% depending on risk tier.
  • PwC lists BPJS Kesehatan at 4% employer and 1% employee, on a base capped at IDR 12 million a month from 2020, updated annually.
  • Employers deduct the employee share and remit both shares monthly, before the 10th. Death insurance shows 0.3% on BPJS pages but 0.20% in PP 37/2021, so confirm current rates.

Steps

  1. Step 1: Registration with the Ministry of Manpower — Register with the Ministry of Manpower to obtain a Business Registration Number. This is required for all foreign companies wishing to employ Indonesian citizens.
  2. Step 2: Obtaining a Work Permit — No specific information is available on the process of obtaining a work permit for foreign employees in Indonesia.

← Back to Indonesia guides