Social security in
Indonesia.

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What does the social security system in Indonesia cover?

The social security system in Indonesia covers the following

Work accident protection
Death insurance
Old age savings
Healthcare
Pension

What are the mandatory contributions for employees to social security in Indonesia?

Employees in Indonesia must contribute 4% of their salaries to the social insurance scheme. The employer will withhold this amount and pay it on their behalf.

What are the mandatory contributions for employers to social security in Indonesia?

Employers in Indonesia must contribute between 10.24% – 11.74% of employee salaries toward the social insurance scheme.

How do mandatory contributions for employers compare to surrounding countries?

Compared to neighboring countries like Malaysia (12% -13% of employee salaries), Papua New Guinea (8.4%), and Singapore (9.98% – 32.48%), the mandatory contributions of Indonesia are reasonable at 10.24% – 11.74% of employee salaries.

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Your business can easily hire employees in Indonesia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in Indonesia?

Employers contribute 10.24% – 11.74% of employee salary to social security in Indonesia.

What situations does social security cover for employees in Indonesia?

Social security in Indonesia covers situations like:

Work accident protection
Death insurance
Old age savings
Healthcare
Pension

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Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)