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The social security system in Indonesia covers the following
Employees in Indonesia must contribute 4% of their salaries to the social insurance scheme. The employer will withhold this amount and pay it on their behalf.
Employers in Indonesia must contribute between 10.24% – 11.74% of employee salaries toward the social insurance scheme.
Compared to neighboring countries like Malaysia (12% -13% of employee salaries), Papua New Guinea (8.4%), and Singapore (9.98% – 32.48%), the mandatory contributions of Indonesia are reasonable at 10.24% – 11.74% of employee salaries.
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.
Employers contribute 10.24% – 11.74% of employee salary to social security in Indonesia.
Social security in Indonesia covers situations like: