Slasify｜We Satisfy Your Global EOR & Payroll Needs Slasify is not just another Global EOR (Employer of Record) and Payroll service provider, our technology on the one-stop remote worker management platform allows us to disrupt the staffing industry. We have over 10,000 remote talents in our network with over 80% of which are in the IT sector and around 1,000 talents are currently deployed. We are currently working with companies that are listed on the Fortune 100. We handle all payroll tax headaches and local employees' compliance efficiently in 150+ countries, especially in the Greater China region, Taiwan, Singapore, Australia, and the USA. Change How You Work & Pay Remotely We aim to support employers focus on global expansion by hiring remote talents, without setting up their own entities in different countries. It will be a hassle-free process by our Global EOR and Payroll team. Slasify has strong experiences in providing cross-border payments, we pride ourselves on the speed that we can execute projects through our platform (usually within 24-48 hours depending on which region of the world the clients are in). Simplicity, flexibility, security, expert support. Slasify, your best remote HR solution.
Indonesia, a vibrant archipelago situated in Southeast Asia, encompasses a diverse cultural heritage, stunning natural landscapes, and a rapidly emerging market economy. As the world’s fourth most populous nation and the largest economy in Southeast Asia, Indonesia has prioritized enhancing its business climate through progressive economic reforms, fostering investment opportunities, and attracting multinational corporations for expansion. These concerted efforts have propelled Indonesia as a favorable destination for businesses seeking to tap into its vast potential and dynamic market.
Expanding to Indonesia necessitates a comprehensive understanding of the country’s labor regulations. Employers must adhere to their obligations, which include contributing to national social security programs administered by the Social Security Management Agency (BPJS Ketenagakerjaan) and the Social Security Administrator for Health (BPJS Kesehatan). These contributions are essential in providing employees with social protections encompassing health insurance, work-related accident insurance, and pension benefits. By fulfilling their contributory obligations, employers can ensure the well-being and security of their workforce in Indonesia.
Employer and Employee Payroll Contribution
The following rates are applicable to locals and foreigners who have lived (or expected to work) in the country for at least 6 months.
Employer’s contribution rate
Employee’s contribution rate
Health Insurance (JKN)
4% (calculated based on the employee’s monthly salary of up to IDR 12M)
1% (calculated based on the employee’s monthly salary of up to IDR 12M)
Work Accident Insurance (JKK)
0.24%–1.74%
–
Old Age Pension (JHT)
3.7%
2%
Death Insurance (JKM)
0.3%
–
Pension Insurance (JP)
2% (calculated based on the employee’s monthly salary of up to IDR 9,559,600)
1% (calculated based on the employee’s monthly salary of up to IDR 9,559,600)
Total
10.24%–11.74%
4%
Health Insurance in Indonesia: BPJS Kesehatan
Badan Penyelenggara Jaminan Sosial Kesehatan, or BPJS Kesehatan, began its official operation in 2014. It serves to operate Indonesia’s national health insurance program (Jaminan Kesehatan Nasional or JKN) under the principle of social security, and requires employers to contribute and deduct a portion of their employees’ salaries–the rates of which are indicated above–to finance the comprehensive and affordable healthcare services for those insured. Under this program, the insured and their eligible dependents are entitled to numerous benefits, including, but not limited to:
Primary health care (non-specialist health service)
1. Administration of service 2. Promotive and preventive services 3. Examination, treatment and medical consultation 4. Non-specialist medical measures, both operative and non-operative 5. Care drugs and consumable medical materials
Outpatient care
1. Administration services 2. Examination, treatment and specialist consultation by a specialist and subspecialist medicine 3. Medical treatment in accordance with a medical specialist, medical indications 4. Drugs and medical consumable materials
Inpatient care
1. Non-intensive inpatient treatment Inpatient care in intensive care 2. Other health services specified by the Minister
Other Insurances: BPJS Ketenagakerjaan
Badan Penyelenggara Jaminan Sosial Ketenagakerjaan, or BPJS Ketenagakerjaan, is responsible for managing employment-related insurances and social security programs in Indonesia. This agency administers various important programs, including the work accident insurance (Jaminan Kecelakaan Kerja or JKK), old-age insurance (Jaminan Hari Tua or JHT), pension insurance (Jaminan Pensiun or JP), and death insurance (Jaminan Kematian or JKM). Each program has its own set of rules and regulations, which are applied based on specific circumstances and cases. For instance, employers are required to pay different rates for work accident insurance, which are directly influenced by the level of risk associated with the nature of the work or industry, while disability benefits are paid out based on the percentage of disability suffered by the individual. Moreover, some of these programs also provide lump-sum payments to their beneficiaries.
A relatively new unemployment insurance program (Jaminan Kehilangan Pekerjaan or JKP) has also been introduced by BPJS Ketenagakerjaan. While this program is said to be funded with 0.46% of the insured’s monthly salary, it does not make any changes to the amount of employer and employee contributions. Instead, this program is partially financed by the government (0.22%) and by the transfer of resources from other BPJS Ketenagakerjaan programs (0.14% from JKK and 0.10% from JKM). This ensures that the JKP operates efficiently while maintaining a balanced contribution structure for employers and employees.
Slasify, your trusted partner for payroll in Indonesia
The aforementioned responsibilities and contributions serve as crucial aspects that employers must address when hiring employees in Indonesia. The social security contributions in Indonesia can be intricate and nuanced, making it essential to properly handle employer contributions and salary calculations. To ensure compliance with Indonesian labor laws and minimize the risk of payroll errors, it is advisable to seek assistance from experts in the field. With Slasify’s expertise, you can navigate the complexities of Indonesia’s labor landscape and receive comprehensive payroll solutions tailored to your specific needs. Connect with our team of professionals today to benefit from their knowledge and guidance on Indonesian labor regulations and seamless payroll processing.
Slasify is designed for remote workers. We provide payroll calculation, social security payment and tax filing in more than 150 countries around the world, allowing business owners/talents to seamlessly connect with the world. We have practical experience in serving the world’s top 100 companies. If you have relevant needs, please feel free to contact us.
In addition, if you are a “remote worker” or are on the way to becoming a “remote worker”, and if you want to know more about it, you are welcome to visit Slasify’s website. If you have any questions, you are welcome to write an email to us!
