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13th month pay in
Indonesia.

  • Learn about the average salary in Indonesia thanks to Horizons’ up-to-date guide.
  • Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 185 countries worldwide, without the need to open a local entity.

SALARY PAYMENT IN Indonesian Rupiah (IDR, Rp)

CONTRACT LANGUAGES Bahasa Indonesia / English

PAYROLL TAX 10.24% – 11.74%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Horizons-owned entity with local country experts in Indonesia.
Horizons entity<img Class="plus" src="/wp-content/uploads/2022/10/plus.svg"> <img Class="minus" src="/wp-content/uploads/2022/10/minus.svg">
Horizons entity
We offer fair, scalable, and transparent pricing on Indonesia PEO service. Contact us for a cost breakdown
Fair pricing <img Class="plus" src="/wp-content/uploads/2022/10/plus.svg"> <img Class="minus" src="/wp-content/uploads/2022/10/minus.svg">
Fair pricing
End service in Indonesia with no additional penalties or fees.
Flexible terms<img Class="plus" src="/wp-content/uploads/2022/10/plus.svg"> <img Class="minus" src="/wp-content/uploads/2022/10/minus.svg">
Flexible terms
Including vision, dental, death & disability, travel, and more.
Insurance add-ons<img Class="plus" src="/wp-content/uploads/2022/10/plus.svg"> <img Class="minus" src="/wp-content/uploads/2022/10/minus.svg">
Insurance add-ons
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Hire and pay talents
with Horizons in
180+ countries

Indonesia

Is there 13th-month pay in Indonesia?

Yes, the 13th-month salary is mandatory in Indonesia. It is called the Tunjangan Hari Raya (THR) payment and is linked to religious holidays.

How is 13th-month pay calculated in Indonesia?

The 13th-month pay is simply an entire month’s salary (annual income divided by 12) plus any fixed monthly allowance.

When is the 13th-month salary paid in Indonesia?

The payment needs to be made at least one week before the main religious holiday observed for the employee. For this reason, the payment date can vary depending on the religion of the employee.

Does the 13th month pay amount to any extra payment by the employer?

Since the 13th month of pay in Indonesia is required by law, employers should factor this into the budget when hiring employees. Employers looking to hire in Indonesia should divide their annual salary by 13 and use this as the baseline monthly amount when recruiting employees in Indonesia.

Is the 13th-month salary taxable in Indonesia?

Yes, it is taxable as normal income.

Hiring in Indonesia, Made Easy

Your business can easily hire employees in Indonesia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

Get a free consultation today

FAQs

The 13th month salary is required by law in Indonesia. It is a payment for the religious holiday observed by the employee and should usually be paid according to their preference.

There are normally not more than 13 months of pay in Indonesia.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."
Gabor SzedlakCo-founder & COO at MindLabs (UK)
Gabor
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Gary PaskyVP Software Development, PICS ITech (USA)
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Chris MorrellManaging Director, Schaeffler Group (Germany)
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Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)
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"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."
Katia FlamandHuman Resources, Devian Chemicals (Belgium)
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