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Minimum wage in
Indonesia.

  • Learn about the minimum wage 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

What is the minimum wage in Indonesia per hour?

The minimum wage in Indonesia fluctuates wildly depending on the province or city. The minimum wage in Jakarta, Indonesia is 4.64M IDR/month.

This works out to a minimum wage of IDR 29,000 per hour in Jakarta.

Are there regional variations in Indonesia’s minimum wage?

Yes, it does vary by region. Outside of Jakarta, the minimum wage is generally lower, with the lowest minimum wage at 1.68M IDR/month.

How has minimum wage in Indonesia changed in the last 5 years?

Due to the huge range of minimum wages active in Indonesia, we will focus on the minimum wage of Jakarta. The minimum wage in Indonesia (Jakarta) has increased at a steady rate over the last 5 years, at an average rate of IDR 250,000 (USD $16.25) per month per year.

Indonesia – Minimum Wage Over the Years

DateMin. Wage, Monthly (IDR)
20224.64M
20214.42M
20204.27M
20193.95M
20183.64M
20173.35M
20163.10M
20152.70M

How does the minimum wage in Indonesia compare to surrounding countries?

Southeast Asia is a varied region, with some very strong economies and some very unstable economies. Indonesia’s minimum wage is higher than in some countries but significantly lower than in others, such as Singapore.

Is there a different minimum wage for foreigners in Indonesia?

The minimum wage for foreigners seeking employment in Indonesia is the same as for locals seeking employment. There is no special minimum wage for foreigners in Indonesia.

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 average salary in Indonesia is approximately double the minimum wage in Indonesia; in reality, an employee’s salary will depend on a range of factors including the employee’s location, previous experience, experience level, and market conditions. For markets like Indonesia, employers should go into the hiring process with an open mind and a flexible budget.

It is generally not possible to hire skilled employees at the minimum wage in Indonesia. Compared to other markets, however, average salaries are relatively low. While skilled employees may be hired at a lower cost than in more developed markets, these employees usually expect a higher pay rate than the minimum or even the average salaries.

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Gabor SzedlakCo-founder & COO at MindLabs (UK)
Gabor
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Gary PaskyVP Software Development, PICS ITech (USA)
Gary Pasky
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Chris MorrellManaging Director, Schaeffler Group (Germany)
Chris Morrell
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Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)
Christoph
"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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