After one year of service, workers in Indonesia are entitled to minimum 12 days of leave. When and how employees are allowed to take their leave is up to the company itself, as Indonesian law does not provide specific guidelines on this topic. However, leave must always be paid in the form of regular salary and any unused days should be compensated in lieu to the employee.
In Indonesia, mothers are entitled to 3 months of paid maternity leave with no time-off paternal leave given to fathers. Generally, maternal leave is claimed 1.5 months before delivery and 1.5 months after giving birth, during which period the company must pay employees their salaries in full. Special arrangements, such as extending maternity leave, can be made following a doctor’s recommendation.
In case of employees’ leave due to sickness, the company should not treat it as annual leave, but follow this system instead:
- During the first 4 months of absence, the company should pay employees 100% of their wages.
- During the second 4 months of absence, the company should pay employees 75% of their wages.
- During the third 4 months of absence, the company should pay employees 50% of their wages.
- For any subsequent months, the company should pay employees 25% of their wages.
- In addition to menstrual leave (for female workers), employees are paid in full if they cannot perform their duties in the first and second day of their menstrual cycle.
In the payroll system in Indonesia, employees are entitled to paid personal leave in the following circumstances:
- Worker’s marriage (3 days),
- Worker’s child’s marriage (2 days),
- Worker’s son’s circumcision (2 days),
- Worker’s child’s baptism (2 days),
- Worker’s wife giving birth or having a miscarriage (2 days),
- Death of worker’s close family members (spouse, child, parents and in-laws) (2 days),
- Death of worker’s extended family (1 day)
- Salary Structure Submission
The salary structure and scale is made up of wages ranging from the lowest to the highest and vice versa, which include the range of nominal wages for each class/job position.
Companies must have a clear payroll structure in place with detailed information of role description, duration of employment, education and competence, appointed by the company management in the form of company decree.
Indonesian regulations stipulate that companies shall arrange and implement the Structure and Scale of the Salary according to the regulations of the Ministry of Manpower.