Employer of Record in Indonesia: 17 Providers Compared (2026)

Employing someone in Indonesia: key facts

Indonesian employment rests on a regional minimum wage, two BPJS social-security programmes paid in part by the employer, and a mandatory holiday allowance; figures are statutory and checked 2026-10-10, and values restored from a garbled PDF are marked.

Minimum wage

There is no national minimum wage; each province and regency or city sets its own.

• Jakarta’s rate, set under Government Regulation 49/2025, is the highest of any province.
• The new Employment Protection Law provides sector minimums at least 5% above UMP/UMK and a new formula from UMP 2028; it is not in force (Talenta, checked 2026-10-10).

Employer contributions

Rates are for a local employee in a low-risk office role; the employee also pays JHT 2%, JP 1% on the capped base and health 1%.

Source: BPJS Ketenagakerjaan, checked 2026-10-10. For an office employee above both caps the total is about 4.7-5.2% of the salaries used on this page.

• BPJS’s own page still shows the previous JP ceiling (IDR 10,547,000); the March 2026 ceiling comes from PwC (reviewed 2026-06-11), as does the IDR 12 million health cap (PwC).
• We assumed the lowest JKK risk class; the class an EOR is actually assigned is not known.

Working hours and overtime

• 40 hours a week: 7 hours a day on a 6-day week or 8 hours on a 5-day week, with 30 minutes’ rest after 4 hours of continuous work.
• Overtime pays 1.5x the hourly wage for the first hour and 2x for each further hour; the hourly wage is 1/173 of the monthly wage (divisor restored from a garbled PDF).
• Overtime is not payable to managerial or professional staff with unlimited hours and higher pay, if the contract or company regulation says so.

Source: SSEK, Lexology Panoramic 2026, checked 2026-10-10.

Annual leave and public holidays

• 12 days a year after 12 consecutive months of work, fixed-term employees included (SSEK, checked 2026-10-10).
• 2026: 17 national holidays plus 8 collective leave days (cuti bersama), set by the Joint Decree of three ministers (Setneg, checked 2026-10-10). The numbers come from a search excerpt; we did not check whether collective leave is deducted from annual leave for private employers.

Probation

• Up to 3 months, in permanent (PKWTT) contracts only, in writing, and it cannot be extended or repeated.
• No probation in fixed-term (PKWT) contracts.

Source: SSEK, 2026-07-03, checked 2026-10-10.

Notice and severance

• The employer serves written notice with reasons at least 14 working days before termination (GR 35/2021 art. 39; the figure is restored from a garbled PDF). The employee may object within 7 working days; if they disagree, the steps are bipartite negotiation (30 days), mediation, then the Labour Court.
• Constitutional Court Decision 168/PUU-XXI/2023: where the employee does not agree, termination needs a binding court decision.
• We did not collect the notice period for resignation.

Severance pay (uang pesangon), restored from a garbled PDF as the scale in GR 35/2021 art. 40:

• Long-service pay (UPMK) is added from 3 years: 2 months at 3-6 years, up to 10 months at 24 or more. Compensation for unused leave and return costs are also due, and the multipliers are cut by half for losses, closure from losses or force majeure.
• A fixed-term employee receives end-of-contract compensation of one month’s salary per 12 months of service, proportional below 12 months (PP 35/2021 art. 15); early termination means paying the salary for the remaining term (Labour Law art. 62).

Source: SSEK, Lexology Panoramic 2026, checked 2026-10-10. The new Employment Protection Law would change this scale; see below.

13th salary and bonuses

There is no 13th-month salary. The religious holiday allowance (THR) is mandatory: one month’s salary once a year, for one religious festival (SSEK, checked 2026-10-10). We did not collect the payment deadline or the pro-rating for staff under 12 months.

Mandatory benefits

• Registration in both programmes, BPJS Kesehatan and BPJS Ketenagakerjaan (JHT, JKK, JKM, JP, JKP).
• THR of one month’s salary.
• Paid sick leave: full wages for the first 4 months of prolonged illness, then 75%, 50% and 25% by four-month stages (percentages restored from a garbled PDF).
• Maternity leave of 1.5 months before and 1.5 months after birth; paid leave for family events, such as 3 days for marriage.

Source: SSEK, Lexology Panoramic 2026, checked 2026-10-10.

Work permits

• A foreign national needs an approved foreign worker utilisation plan (RPTKA) from the Ministry of Manpower, then a limited-stay visa (VITAS) that converts to a limited stay permit (ITAS/KITAS) on arrival.
• The RPTKA applicant must be an Indonesian legal entity or other eligible body: a PT, a PT PMA, a foreign representative office or certain institutions.
• The employer prepays USD 100 per month of planned stay into the DKP-TKA fund. The position must be allowed, an Indonesian counterpart named, and foreigners cannot hold personnel-management positions.
• An RPTKA is valid for 6 months (not extendable) or up to 2 years (extendable).
• Whether an EOR can sponsor a foreign hire in a core role is not confirmed. Hukumonline says an outsourcing company can bring in foreign workers only within the permitted categories of work.

Sources: SSEK, DFDL, Hukumonline, checked 2026-10-10.

Currency and payroll

• Payroll is in Indonesian rupiah (IDR); the Bank Indonesia JISDOR rate on 2026-10-09 was IDR 17,884 per USD (Bank Indonesia, checked 2026-10-10). Wages must be paid in rupiah under PP 36/2021; we did not find the article.
• The pay period may not exceed one month (PP 36/2021 art. 55, text, checked 2026-10-10).
• Income tax (PPh 21) is withheld monthly with the TER method, Category A for a single employee, in January-November; in December the annual tax on the 5-35% scale is recalculated and settled (PwC, checked 2026-10-10).
• Employer-paid BPJS Kesehatan, JKK and JKM premiums count as taxable gross income (Ortax, a secondary source; we did not open PMK 168/2023).

Is Employer of Record legal in Indonesia?

Restricted. Indonesian law has no “employer of record” category. An EOR placing staff with a client is treated as outsourcing (alih daya), which Ministry of Manpower Regulation 7/2026 (30 April 2026) confines to six supporting activities (SSEK, checked 2026-10-10):

• Activities: cleaning, catering, security, drivers and worker transport, “operational support services” (a catch-all that the sources we opened do not define), and supporting work in mining, oil, gas and electricity. It is framed as provision of labour services, distinct from B2B results-based contracting.
• Core roles: Nusantara Legal Partnership (2026-09-21) writes that an EOR used to place staff in core business functions, such as sales, engineering or management roles, falls outside its scope, and that no separate EOR licence exists (Mondaq, checked 2026-10-10).
• Employer: the outsourcing company must be a licensed legal entity, and staff are its employees on a permanent (PKWTT) or fixed-term (PKWT) contract, with no employment relationship with the user company (SSEK, Lexology Panoramic, checked 2026-10-10).
• Registration: each outsourcing agreement is registered with the local manpower office within 3 working days of signing (Rajah & Tann, checked 2026-10-10).
• Transition: existing agreements stay valid until expiry, but job types must be aligned by 2028-04-30.

What we could not establish. The regulation’s own text was not opened, and the Employment Protection Law text is unpublished, so every rule above rests on law-firm summaries. We found no ABNR, HHP or Big Four statement on EOR specifically; PwC was used for tax only. No source says whether a foreign company without a PT can be a “user company” at all, or how a core role such as a software engineer can be placed lawfully. Nor did we confirm whether the outsourcing licence is a separate business licence.

Client risk (Rajah & Tann, Mondaq, checked 2026-10-10):

• Outsourcing outside the six categories brings administrative sanctions for the user company: a written warning, business activity restrictions and a delay in issuing business licences. Providers face warnings up to licence revocation and fines.
• The client keeps its own compliance exposure and a supervisory duty if the provider fails statutory protections; the summaries advise auditing the vendor.
• Under the new Employment Protection Law, outsourced workers in production-related roles may be treated as the user company’s employees; it is not yet promulgated.
• Employing a foreigner without the RPTKA steps brings sanctions: postponed service, a suspended permit application, a revoked notification.

We could not establish how the providers below structure their service: as licensed outsourcing, a services contract or a partner.

Who actually employs your hire in Indonesia

Of 17 providers that operate here, three say they run their own Indonesian entity: Deel, Remote and Atlas HXM. All three are vendor statements, and no entity in the table is checked against a registry: AHU Online (ahu.go.id) needs a login and did not load from our host, OSS name search needs a login, and an OpenCorporates mirror returned no Indonesian companies for a test name, so it has no coverage.

Prices checked 2026-10-10; “global” marks a price shown for all countries, not an Indonesian one. All figures are per employee per month in USD.

Fourteen providers name no Indonesian entity, and only Remote’s Local Terms give the name of one. Indonesian rules put the employer’s licence and obligations on the legal entity, so the name matters. Before signing, ask for the entity’s legal name and company ID, whether it is licensed as an outsourcing company under Regulation 7/2026, and which of the six activities your role falls under.

Boundless and Skuad lead to the same Payoneer landing page, so we list them as one offer under two names. Justworks does not list Indonesia among its EOR countries, per its help page.

How to choose an EOR in Indonesia

Core role or support role? An engineer, salesperson or manager is a core role, which the outsourcing rule excludes according to Nusantara Legal Partnership. Ask any provider in writing which legal basis it relies on for your role; if it can’t say, treat an EOR as unconfirmed and consider a contractor or your own PT PMA.

Foreign hire needing a work permit? The RPTKA applicant must be an Indonesian legal entity or similar body, and whether an EOR can sponsor is unconfirmed. Rivermate’s guide describes its EOR as sponsor of RPTKA and KITAS, and one immigration firm says an EOR can; no major law firm confirms it. Ask who files the plan, for which position and who pays the DKP-TKA fee.

Entity evidence or price? Remote is the only provider whose own document names an Indonesian entity; Deel and Atlas HXM claim one without a name. Among the others, Indonesia-page prices run from Playroll at $399 to Multiplier at $459 on annual billing, and Skuad shows a promotional $249 that depends on volume. Remote’s $699 and Atlas HXM’s $599 are global prices.

Speed? Providers’ own claims: Borderless AI 1-2 days, Deel as little as 3 days, Skuad’s Payoneer page 3-5 business days, Playroll 5 to 10 business days, Safeguard Global one to two weeks. Remote says a Right to Work check for non-nationals adds three days.

What it costs to employ someone in Indonesia through an EOR

The EOR, as legal employer, registers the employee in both BPJS programmes, so the statutory rates apply. Figures assume a local single employee in Jakarta in an office role (JKK risk class 0.24%), 2026 rates and the March 2026 pension ceiling, converted at IDR 17,884 per USD (Bank Indonesia JISDOR, 2026-10-09). Jakarta has no local employer payroll tax.

Source: BPJS Ketenagakerjaan, checked 2026-10-10. Salaries are 12 monthly instalments of IDR 75,000,000 and IDR 150,000,000. The pension ceiling is applied to all 12 months. THR (one month’s salary: IDR 75,000,000 or IDR 150,000,000) and end-of-contract compensation are not in the totals.

On the same IDR 900 million salary, employer BPJS was IDR 46,021,104 in 2021 and IDR 46,580,712 in 2026, a 1.2% rise, so we show no history chart; only the pension ceiling is dated year by year.

The EOR’s own fee comes on top, in USD per employee per month. Indonesia-specific prices: Playroll from $399, Multiplier from $459 on annual billing, Borderless AI $579 in its own blog, Deel from $599; Skuad’s Indonesia page and the Payoneer landing show promotional $249 and $199 prices that depend on hiring volume. Deel’s Indonesia page also lists an “Employer Liability Cost” administrative fee of 0.60%. Global list prices: from $99 at Native Teams, from $199 at RemoFirst, $319-$639 at Rivermate, from $599 at Atlas HXM and $699 at Remote.

Hidden costs, where published: Remote states no platform, onboarding or setup fees and a reserve only in rare high-risk cases (global, remote.com/pricing, checked 2026-10-10); RemoFirst states no setup, onboarding or termination fees and no minimums (global); Borderless AI claims no salary deposit. No provider publishes a deposit, minimum term or termination fee for Indonesia; treat a blank as unpublished, not zero.

When you don’t need an EOR

• A contractor. An individual invoicing a foreign client can fall under the final income tax of 0.5% of turnover (PP 55/2022 as amended by PP 20/2026): the first IDR 500 million of annual turnover is tax-free, and the limit is IDR 4.8 billion of gross turnover including foreign income. On an IDR 900 million invoice the tax is IDR 2,000,000. PP 20/2026 widened the list of “independent professional work” excluded from the regime (consultants, similar experts, content creators, artists), and the sources do not settle whether an IT contractor counts; if so, the 5-35% scale applies, which on the same invoice with no expenses deducted would mean IDR 197,800,000 (DJP, a presentation of the act, checked 2026-10-10). Misclassification risk is not modelled; see contractor misclassification, how to hire contractors in Indonesia and how to pay them.
• Your own entity. A PT PMA makes you the employer and the outsourcing limits do not apply. It needs a minimum investment plan of IDR 10 billion per five-digit KBLI code and project location (excluding land and buildings) and, since BKPM Regulation 5/2025 (1 October 2025), issued and paid-up capital of at least IDR 2.5 billion, with a 12-month restriction on moving the funds out; an earlier IDR 10 billion paid-up figure is superseded (Mondaq, checked 2026-10-10). Playroll’s page puts PT PMA setup at 3-6 months and USD 15,000-30,000 in costs.
• A support role through an EOR. Where the work is one of the six activities, outsourcing is the lawful channel; see EOR vs PEO for the model difference.

What changed in 2026

• 2026-01-01 - Jakarta provincial minimum wage rises to IDR 5,729,876 a month from IDR 5,396,761 (Government Regulation 49/2025).
• 2026-03-01 - BPJS pension ceiling rises to IDR 11,086,300 a month, valid through February 2027.
• 2026-04-22 - Government Regulation 20/2026 amends PP 55/2022: the 0.5% final tax for individuals has no time limit, the IDR 4.8 billion threshold and IDR 500 million tax-free portion stay, and the excluded “independent professional work” list is widened. We did not confirm its effective date.
• 2026-04-30 - Ministry of Manpower Regulation 7/2026 on outsourced work: six-activity list, registration of agreements within 3 working days, user-company responsibility, transition to 2028-04-30. Its text was not read; the summary is from SSEK and Rajah & Tann.
• 2026-10-06 - Parliament (DPR) passes the Employment Protection Law, replacing the manpower provisions of the Job Creation Law after Constitutional Court Decision 168/PUU-XXI/2023. It takes effect after a one-year transition from promulgation and was not promulgated as of 2026-10-08; the official text is not published, so what follows comes from the press and law firms (Rajah & Tann, Talenta, checked 2026-10-10):
  • the fixed-term (PKWT) maximum falls from 5 years to 4 (2 years plus two 1-year extensions); one commentator quoted by Kontan says 3, and the reports disagree;
  • outsourcing is limited to five activities (cleaning, catering, security, mining and oil support, worker transport), without the “operational support” catch-all in the reported list;
  • in the draft text, outsourced workers doing production-related work become employees of the user company;
  • the 0.5x reduction in severance multipliers goes, and a severance pre-funding scheme (jaminan pesangon) is created;
  • sector minimum wages at least 5% above UMP/UMK, with a new formula from UMP 2028; maternity leave of 3 plus 3 months and up to 2 days of menstrual leave.
• Pending: the Personal Data Protection Law (Law 27 of 2022, in force since 2022-10-17, transition ended 2024-10-17) still awaited its implementing regulation and a supervisory agency in 2026 (Legal500, checked 2026-10-10).

Existing rules stay in force until the new law takes effect.

Numbers vendors haven’t updated

• Jakarta minimum wage 2026. Our figure is IDR 5,729,876, the same one Deel, Remote, Skuad and Rivermate give. Playroll’s page says IDR 5,333,913. Remote’s page also shows IDR 4,901,798 in a second block, which equals the Jakarta rate in 2023 in our series. Pebl’s page gives IDR 5,067,381 for 2025, which equals the 2024 rate; the 2025 rate was IDR 5,396,761 (Hukumonline, checked 2026-10-10).
• RemoFirst lists provincial minimums of IDR 2.17-5.40 million a month, 2025 data, and employer contributions of 10.24%-11.74%, the sum of rates without the wage ceilings. At the cost-example salaries above the caps the total is 5.18% and 4.71%.
• Deel estimates employer cost at 11.08% of salary, including a 0.60% administrative fee, and quotes ceilings of IDR 221,726 and IDR 480,000, which match the maximum monthly pension and health contributions in the table above, not wage bases. We could not reconcile this with the BPJS page.

How we built this page

Data was collected and checked on 2026-10-10 against laws, regulator pages and law-firm commentary, much of it secondary because the texts of Regulation 7/2026 and PP 20/2026 were not read. We could not check provider entities against the AHU registry, so every employer claim above is the provider’s own statement. Providers that say they own an Indonesian entity come first, then the rest by published Indonesia price and completeness of data. We left out Oyster, Papaya Global, Rise, Kleos and Remozo because we could not confirm they offer EOR in Indonesia, and Justworks, which does not list it; nobody pays for placement on this page.