Female employees are entitled to 3 months of maternity leave paid at 100% of their salary. This can be taken as 1.5 months before and 1.5 months after the birth.

Under recent legislation, maternity leave can be extended by an additional 3 months. The first 4 months are paid at 100% of salary, while months 5 and 6 are paid at 75%.

In the case of a miscarriage, the employee is entitled to 1.5 months of leave.

Fathers are entitled to 5 days of paternity leave with full pay. This includes 2 standard days plus 3 additional days under Law 4/2024.

Sick leave in Indonesia is paid by the employer on a declining scale:

• First 4 months: 100% of salary
• Months 5 to 8: 75% of salary
• Months 9 to 12: 50% of salary
• After 12 months: 25% of salary

Employees must provide a medical certificate to qualify for paid sick leave.

Employees are entitled to 12 days of paid annual leave after completing 1 year of continuous service with the same employer.

Indonesia does not permit at-will termination. Employers must have a valid reason to dismiss an employee as stipulated by the Manpower Law. Termination must follow proper procedures and may require approval from the Industrial Relations Court in disputed cases.

Valid grounds for termination include:

• Company restructuring or efficiency measures
• Bankruptcy or closure of the company
• Force majeure
• Early termination of a fixed-term contract

The notice period requirements in Indonesia are as follows:

• Employer-initiated termination: 14 working days written notice
• Employee resignation: 30 days written notice
• During probation period: 7 days written notice

Notice must be provided in writing and clearly state the reason for termination.

Severance pay is mandatory in Indonesia for certain termination circumstances. The amount is calculated based on years of service with a multiplier ranging from 0.5x to 2x depending on the reason for termination.

Severance is calculated per years of service as defined by the Manpower Law. In addition to severance, employees may be entitled to a long-service award and compensation for unused leave and other entitlements.

Employees are entitled to 12 days of paid annual leave after completing 1 year of continuous service with the same employer.

Indonesia observes 15-16 official public holidays annually, reflecting the country's diverse religious and cultural heritage.

National public holidays include:

• New Year's Day (January 1)
• Independence Day (August 17)
• Eid al-Fitr (varies)
• Eid al-Adha (varies)
• Christmas Day (December 25)
• Nyepi - Balinese New Year (varies)
• Buddha's Birthday - Waisak (varies)
• Isra Mi'raj (varies)
• Islamic New Year (varies)
• Chinese New Year (varies)
• Good Friday (varies)
• Ascension Day (varies)
• Mawlid - Prophet's Birthday (varies)

Employers are legally required to pay the THR (Tunjangan Hari Raya) religious holiday bonus, equivalent to 1 month's salary, before the employee's major religious holiday. This bonus is mandatory and must be paid no later than 7 days before the holiday.

The onboarding process is typically completed within 2-5 business days following client execution of the Statement of Work.

Salaries in Indonesia are paid on a monthly basis. Employers are required to pay employees regularly on a fixed date each month.

The THR (Tunjangan Hari Raya) religious holiday bonus is mandatory and equivalent to 1 month's salary. It must be paid before the employee's major religious holiday, no later than 7 days prior.

Written employment contracts are required in Indonesia. Contracts can be drafted in Indonesian or in a bilingual format (Indonesian and another language).

Contract types:

• Fixed-term contracts (PKWT): Maximum total duration of 5 years
• Permanent/indefinite-term contracts (PKWTT): No fixed end date

Essential contract elements include:

• Employee and employer identification
• Commencement date
• Job title and description
• Compensation and benefits
• Working hours and schedule
• Duration (for fixed-term contracts)
• Termination provisions

The maximum probation period in Indonesia is 3 months. Probation clauses are only permitted in permanent (indefinite-term) contracts. Fixed-term contracts cannot include a probation period.

During probation, the employer must still pay at least the applicable minimum wage.

The current retirement age in Indonesia is 59 years, with plans to gradually increase it to 65 years. Employees reaching retirement age are entitled to their accumulated pension and old age security benefits.