As per Article 15 of Law No. 24 of 2011 on Social Security and Article 13 of Presidential Regulation No. 82 of 2018 on Social Security, all employers are obligated to register themselves and their employees as participants in the (i) Indonesian Employment Social Security Program (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan or “BPJS Ketenagakerjaan”) and (ii) Health Social Security Program (BPJS Kesehatan or “BPJS Kesehatan”), as well as pay for the associated premiums.
Employees’ healthcare insurance is covered by BPJS Kesehatan, which includes medical examination, treatment, and consultation, non-specialist medical procedures including operative or non-operative measures, medicinal services, as well as hospitalization (Article 47 of Presidential Regulation No. 82 of 2018 on Social Security (“PR 82/2018”)).
Employees are entitled to paid leave and are permitted to take a paid-leave of up to 12 days after having worked continuously for 12 months (Article 79 paragraph 2 of Manpower Law).
Holidays and Annual Leave
All national holidays are days on which employees should be required to take leave; this is exempted in specific sectors, such as the service sector. Employers that have their employees work on national holidays must provide the overtime pay.
As mentioned in the required leave stipulations, some employers may practically provide 12 days of leave to be taken at any time freely every year (including the employees’ first year of working at the company).
Maternity / Paternity Leave
Indonesian Employment Law requires that female employees be entitled to maternity leave for, at least, 3 months, with the possibility of an additional 3 months in cases of maternal or newborn child health complications, supported by a doctor’s note (Article 4 paragraph 3 of Law No. 4 of 2024 on Welfare of Mothers and Children During the First One Thousand Days of Life (“Maternity Leave Law”)).
Male employees are permitted to take leave to accompany their wives during pregnancy, miscarriage, childbirth, and postpartum, or due to any health issues or passing associated with their wife or newborn child for 2 to 3 days (Article 6 of Maternity Leave Law)
Employees on paternity or maternity leave are entitled to the paid leave. However, female employees are entitled to their full salary for the first 4months, followed by 75% of their salary for each of the following month (Article 5 paragraph 1 of Maternity Leave Law).
Sickness Leave
An employee is permitted to take sick leave for as long as required, provided it is supported by a doctor’s note. An employer is not permitted to terminate an employee on sick leave unless their sick leave has exceeded 12 months (Article 93 paragraph 2, point a, and Article 153A of Manpower Law). An employee on sick leave is entitled to his/her full wages for the first 4 months, 75% for the second set of 4 months, 50% for the third set of 4 months, and 25% for any months after until the termination of their employment (Article 93 paragraph 3 of Manpower Law).
Disability Leave
Disability leave is considered under Indonesian Employment Law to be the same as sick leave.
Any Other Required or Typically Provided Leave(s)
Other categories of paid leave under Indonesian employment law include:
(Article 93 paragraph 2 of Manpower Law)
All employers are required to enter their workers into the Indonesian Manpower Social Security Program known as BPJS Ketenagakerjaan, which will be used to pay out any pension benefits when the employee enters the pension age, provided that the premiums have been paid for, at least, 15 years (Articles 4 and 16 of Presidential Regulation No. 45 of 2015 on Implementation of the Pension Guarantee Program (“PR 45/2015”)). The pension age is currently set at 65 years, where the employees may choose to receive their pension up to 3 years after that (Article 15 of PR 45/2015).
