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Sick Leave and Annual Leave Entitlements in Indonesia: A Guide for Overseas Employers

Hiring employees in Indonesia means that you will need to be familiar with Indonesia’s leave entitlements, which may be quite different from your home country.  As always, the country where you are employing either a local or expat will determine employment rights and benefits for your employees.

Because of this fact, some of the questions you might have include:

  • How do you find out the statutory leave amounts in Indonesia?
  • What are the rules on carrying over or paying out leave in Indonesia?
  • How do you handle leave for sick or pregnant employees in Indonesia?

Here is a quick summary to get you started in navigating these leave requirements:

Annual Leave in Indonesia

Every employee wants to know how much annual holiday leave they are entitled to, and in Indonesia the statutory minimum is 12 days per year.  However, the leave doesn’t vest until after 12 months of service (but can be offered prior if the employer agrees).  It’s also important to know that if the 12 days can’t be taken all at once, a minimum of 6 days must be offered consecutively.

Annual leave can only be carried over for six months from the time it is accrued, and there is no statutory provision for payout of unused leave.  Any longer accrual periods or payout terms would have to be in the employment contract or in a collective labor agreement.

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Case Example: Sick Leave and Medical Leave in Indonesia

Indonesia also has sick leave entitlements, and you will need to know how many days are offered, if they are all paid and is so what amount.

We had a client with an employee in Indonesia who wanted to know much sick leave was statutory.  We replied back with some of the key features and rules about sick leave.

  1. Any paid sick leave must be documented with a medical certificate
  2. The statutory sick or medical leave is 14 days per year (excluding hospitalization)
  3. If an employee needs long term medical leave (more than one year) then they need the written recommendation of a doctor
  4. Long term leave is paid at 100% the first four months, 75% the second four months, 50% the third four months and then 25% of wages until termination.

Female Employee Leave Entitlements in Indonesia

There are several distinct leave entitlements for female employees in Indonesia.

Maternity Leave

Pregnant employees receive three months of maternity leave, 1.5 pre-natal and 1.5 post-natal, where they are paid their full wages.  A certification by an obstetrician or midwife is required to claim the leave.

Breastfeeding Hours

Employers are required to offer time and a place for breastfeeding during work hours.

Menstrual Leave

Female employees are entitled to two days of menstrual leave on the first and second day if they cannot perform their work.

The Shield GEO Solution

As you can see, there are many unique leave entitlements in Indonesia, and if you are not aware of these it could lead to failure to comply with employment statutes.

So, how do you manage Indonesian employment and make sure that all your workers are getting their entitled leave?

The Shield GEO solution is designed to address this very issue of hiring employees overseas and then complying with host country laws.  Through our in-country experts and local employer of record, we take care of the payroll, employment and immigration requirements, virtually eliminating the very real risk of running afoul of employment and labor laws.

Whether you are hiring local residents or assigning expats from home, we make international employment simple for your company’s expansion overseas.

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Looking to hire an employee in Indonesia? Get in touch.

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