The advertised salary isn’t the true cost of hiring in Indonesia either. BPJS contributions, THR (holiday allowance) accrual, and provider fees all add to the base number. Here’s a full breakdown for 2026, including a worked example.
Key Takeaways
- BPJS contributions (Ketenagakerjaan and Kesehatan combined) add roughly 10-14% on top of base salary.
- THR is a mandatory religious holiday allowance equal to one month’s salary for employees with 12+ months of service.
- Skipping PT PMA incorporation with an EOR avoids the ~Rp 10 billion minimum capital requirement most sectors carry.
- EOR provider fees typically scale down per head as team size grows past 8-10 seats.
What Actually Makes Up the Cost of an Indonesian Hire
Base salary is the starting point. On top of it, employers are legally required to cover BPJS Ketenagakerjaan (employment/old-age security) and BPJS Kesehatan (health) contributions, plus accrue THR throughout the year for payout before the relevant religious holiday. An EOR’s service fee sits on top of that.
Worked Example: Rp 8,000,000/Month Base Salary
This is before any EOR service fee. On a single hire, that fee is a larger share of total cost; at 8-10+ seats, scoped pricing models typically bring the per-head cost down compared to flat per-employee platforms.
How Cost Changes as Your Team Scales
A single remote hire and a larger delivery team have different cost structures even at the same base salary. Flat per-employee platforms charge the same fee regardless of headcount, which is fine for a small team but expensive at scale. Scoped providers apply volume pricing past 8-10 seats.
The PT PMA Alternative Cost
Setting up a PT PMA in Indonesia requires roughly Rp 10 billion in minimum paid-up capital for most sectors, plus 2-4 months of incorporation time and ongoing corporate reporting obligations regardless of headcount. For companies testing the Indonesian market or hiring a small team, an EOR avoids that capital lockup entirely.
Frequently Asked Questions
On top of it. THR is a separate statutory entitlement equal to one month’s salary for employees with 12+ months of service (prorated for shorter tenure), paid no later than 7 days before the relevant religious holiday.
Yes, BPJS Ketenagakerjaan and BPJS Kesehatan rates are standardized by regulation, not negotiable between employer and employee, and apply the same way whether you hire directly or through an EOR.
For a large, permanent operation, your own PT PMA can be more cost-effective over many years. For testing the market or a small-to-mid team, an EOR avoids the ~Rp 10 billion capital lockup and ongoing compliance overhead, which usually makes it cheaper in practice for the first several years.
It bundles several programs: JHT (old-age security), JKK (work accident), JKM (death benefit), and JP (pension), with combined employer contributions typically in the 7-8% range depending on industry risk classification.
Yes — Asiacruit’s salary calculator gives a quick estimate, and a scoped quote factoring in headcount and role complexity is available within 24 hours of a request.
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