Leave policy in Indonesia

An employee leave policy may seem like a nice-to-have, but it’s a legal requirement. Companies must comply with the leave policy of the country they’re hiring in, even if that policy is different from their own. For organizations hiring teams outside of their home country, this involves understanding the leave policy requirements for where employees live.

Indonesia’s Manpower Law (also known as Labor Law) stipulates the employee leave requirements that employers must comply with. 

Read on to learn more about leave policy in Indonesia and how an Employer of Record (EOR) can help you onboard, pay, and manage talent in Indonesia.

Vacation/annual leave in Indonesia

Employees are entitled to 12 days of paid vacation leave after completing 3 months of service.

Public holidays

Indonesia observes 16 national public holidays. 

National holidays are known as “red date” (“tanggal merah”) days, and workers are entitled to paid time off because most government offices, schools, banks, and other businesses will be closed. 

Here are the national public holidays in Indonesia:

Indonesian law also mandates that employers offer Tunjangan Hari Raya (THR), a 13th-month bonus paid to employees in March/April. Employees are eligible for THR after 30 days of service.

Sick leave in Indonesia

Employees get a generous amount of sick leave in Indonesia. As long as the employee has a medical certificate to confirm their condition, they can take up to 4 months of sick leave at full pay. There is no cap on total sick leave days.

If they continue to be unwell or are unable to work after 4 months, sick pay is reduced to a percentage of their salary for the remainder of their time off work:

• 4 to 8 months: 75% of salary
• 8 to 12 months: 50% of salary
• 12 months until termination: 25% of salary

Maternity leave in Indonesia

Female employees are entitled to a minimum of 3 months of paid maternity leave. This can be extended by a further 3 months in special circumstances and/or with a doctor’s authorization.

This maternity leave is paid at 100% of an employee’s regular wages. 

In the unfortunate event of miscarriage, employees can take up to 6 weeks of paid leave (or longer, if determined by a doctor). 

Employers should also provide a supportive environment for breastfeeding mothers.

Paternity leave in Indonesia

New fathers are entitled to 2 days of paid paternity leave in Indonesia. They can use these 2 days to attend the birth of their child (and are given 2 days in the event of miscarriage).

Other types of leave in Indonesia

Here are some other common types of leave policy in Indonesia.

Wedding leave

Employees who are getting married can take up to 3 days of time off at full pay for their wedding.

If it’s their son or daughter who is getting married, employees can take 2 days of leave.

Family leave

Leave policy in Indonesia provides full-pay coverage for certain family events, including:

• Circumcision of the employee’s child: 2 days’ leave
• Baptism of the employee’s child: 2 days’ leave
• Death of the employee’s family member living in the same household: 1 day of leave
• Death of the employee’s child, spouse, parent, or parent-in-law: 2 days’ leave

Menstrual leave

Women are entitled to 2 days of menstrual leave per month. This leave should be at full pay, and employees may not need to provide any prior notice.

Explore Payoneer Workforce Management in Indonesia

There’s a lot to understand about leave policy in Indonesia between national and religious holidays, plus the paid leave quotas that many other countries don’t account for (such as menstrual leave). 

Partnering with an Employer of Record in Indonesia, like Payoneer Workforce Management, helps businesses onboard, pay, and manage local talent, without setting up a local entity.

Book a demo today!

Frequently asked questions (FAQs)