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Employees in Indonesia pay for health insurance via salary contributions to the country’s social insurance scheme. Employers are not required to offer separate private health insurance, but we recommend offering it to your employees as part of their benefits packages.
Pensions are covered as part of the country’s social insurance scheme, but some employers choose to offer additional contributions as a benefit.
Disability insurance is covered as part of the country’s social insurance scheme.
Unemployment insurance is now available for many Indonesians. To be eligible, they must be citizens and have been enrolled in the country’s BPJS Kesehatan (health insurance) and BPJS Ketenagakerjaan (pension) programs at least six months before the termination of employment.
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.
Examples of mandatory employee benefits in Indonesia include:
Most of the paid benefits above are provided for through social insurance contributions paid each month by the employer.
Other benefits may be offered to attract or retain skilled or high-value employees.
Horizons can help you offer any benefit to your employees in Indonesia. Through our EOR structure, we take care of all matters related to employment, including benefits. We make sure all mandatory benefits are covered while working with you to determine which additional benefits are appropriate for your specific hiring situation. Get in touch today for a free consultation and demo.