HOW TO CALCULATE MINIMUM WAGE FOR EMPLOYEES

HOW-TO-CALCULATE-MINIMUM-WAGE-FOR-EMPLOYEES

Pursuant to Law No. 13 of 2003 concerning Manpower, all Employers domiciled in Indonesia must ensure that their Employees receive no lesser than Minimum Wage as determined each year by the Government. Learn more on how the government calculates the Minimum Wage each year. At the end of each year, each regional government in Indonesia…

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A GUIDE ON INDONESIA’S HIERARCHY OF EMPLOYMENT LAW SOURCE FOR COMPANIES

A-GUIDE-ON-INDONESIAS-HIERARCHY-OF-EMPLOYMENT-LAW-SOURCE-FOR-COMPANIES

The terms and conditions of Employment is regulated by the prevailing Manpower Law, as well as the individual employment contracts made between the Employer and the Employee. Read more about how they work in our article. In Indonesia, there are 2 (two) sources which makes up the Employment Law in Indonesia: Heteronymous source, consisting of…

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New Regulations On Wages In Indonesia

On October 23, 2015, the Indonesian Government issued Government Regulation No.78 of 2015 (“Government Regulation on Wages”) as an implementation regulation of Article 97 Law No.13 of 2003 on Manpower Law (“Manpower Regulation”). The purpose of  the Government Regulation is to provide sufficient legal basis for both Employers and Employees’ obligation in their Employment Agreement,…

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Foreign Worker Participation on Indonesia’s National Security System

To reform Indonesia’s social security system, the government established the Social Security Agency (Badan Penyelenggara Jaminan Sosial/BPJS) through the issuance of Law No. 40 of 2004 on Indonesia’s National Social Security System in conjunction with Law No. 24 of 2011 on Social Security Agency. According to Article 5 and Article 6 of Law No. 24…

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