Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Indonesian rupiah (Rp, IRD)

Payroll Frequency


Public Holidays

15 days

Employer Taxes


Cost of Living Index


Statutory Leave

12 days

Sick Leave

Unlimited; 100% pay for first 4 months, 50% for the next 4 months, 25% for the rest

Maternity Leave

3 months

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Indonesia is IDR 1,986,670 - 4,901,798.

Overtime Pay

150% for the first hour, 200% for the subsequent hours.

If worked on public holidays, 200% of regular rate for the first 7 hours, 300% for the 8th hour, 400% for 9th and 10th hour.

Additional Pay

There are no additional pay detail for Indonesia.

Payroll Cycle

For all Borderless customers, payment will be made in monthly installments by the last day of each month

Employer Costs & Taxes

  • 0.24 to 1.74%: Working accident protection
  • 0.3%: Death insurance 
  • 3.7%: Old age saving
  • 4%: Healthcare
  • 2%: Pension

Employee Costs & Taxes

  • 2%: Old Age
  • 1%: Healthcare
  • 1%: Pension

Employment Information

Termination Process

Can be terminated if an employee is absent for more than 5 consecutive days or for a just cause such as misconduct or negligence.

Notice period

Employers are generally expected to provide 30 days notice.

Probation Period

Probationary period cannot exceed 3 months for indefinite-term contracts.

Severance Details

1 month wage for each year of service up to 9 months wages  

  • 1 months wages: Up to 1 year of employment
  • 2 months wages: Up to 1 year, but less than 2 years of employment
  • 3 months wages: Up to 2 years, but less than 3 years of employment
  • 4 months wages: Up to 3 years, but less than 4 years of employment
  • 5 months wages: Up to 4 years, but less than 5 years of employment
  • 6 months wages: Up to 5 years, but less than 6 years of employment
  • 7 months wages: Up to 6 years, but less than 7 years of employment
  • 8 months wages: Up to 7 years, but less than 8 years of employment
  • 9 months wages: 8 or more years of employment
Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo