Salary and tax in Indonesia

Where the money goes

Of Rp 60.000.000 gross, income tax (PPh 21) takes Rp 189.350 and employee contributions (BPJS Ketenagakerjaan and BPJS Kesehatan) take Rp 2.400.000. That leaves Rp 57.410.650 a year, or Rp 4.784.221 a month on average.

The employer pays another Rp 6.144.000 in charges on top, 10,2% of the salary. The whole job costs Rp 66.144.000 a year.

How the income tax works

The income tax (PPh 21) rises through 5 bands, from 5% to 35%. The top rate applies from Rp 5.000.000.000 of taxable income. That threshold is 83,3 times the reference salary of Rp 60.000.000, so only high earners reach the top rate.

The bands apply to taxable income: what is left after allowances and deductible contributions. That is why the rates bite later than the gross salary suggests.

Married couples can be assessed jointly, which usually lowers the tax when one partner earns much more. The figures here are for a single person.

How the rates rise with the salary

Income tax starts at a gross salary of about Rp 56.200.000 a year.

At Rp 60.000.000, 4,3% of pay goes to income tax and employee contributions. Of the next 100 earned, 91 reach the employee, a marginal rate of 8,8%.

At twice that salary, Rp 120.000.000, the average rate is 6,7% and the marginal rate 19,2%.

The marginal rate is highest at a salary of about Rp 120.000.000: 19,2%.

Average and marginal rates, with worked examples:
Pay rise: How much more take-home pay? (Indonesia)

Among 50 countries

At the same Rp 60.000.000 a year, converted into each local currency, an employee in Indonesia takes home 95,7%, rank 14 of 50.

The same salary leaves the most in Luxembourg (107,8%) and the least in Switzerland (-108,9%).

Above 100%, refundable credits for low earners pay out more than income tax and contributions take, so net pay exceeds gross: Luxembourg and Belgium.

Every country is calculated for the same single employee without children, with the salary converted at the exchange rates of 2 October 2026. A salary that is typical in one country is high in another, so progressive systems look heavier where wages are lower. The ranking says nothing about purchasing power or about what the contributions pay for, such as pensions and health cover. Where the newer rules are not final, a country is calculated with its latest enacted year: Belgium (2025), Norway (2025) and Romania (2025).

Beyond the payslip

The statutory rules in Indonesia on notice, unemployment, sick pay, parental leave and unpaid wages.

• Notice and dismissal

  Peraturan Pemerintah Nomor 35 Tahun 2021 — Pemutusan Hubungan Kerja

  14 working days

  Notice period

  Article 37 requires written notification of the reasons for a proposed dismissal at least fourteen working days beforehand; trial-period notification has a separate seven-working-day rule.

• Unemployment benefit

  Jaminan Kehilangan Pekerjaan (JKP)

  60%

  Benefit rate

  The current BPJS page gives sixty percent of the last reported wage, using a wage base capped at IDR five million.

• Sick pay

  Undang-Undang Nomor 13 Tahun 2003 — Pasal 93

  100% / 75% / 50% / 25%

  Benefit rate

  Employer wage continuation for qualifying sickness is one hundred percent for the first four months, seventy-five percent for the next four, fifty percent for the third four, and twenty-five percent afterwards before termination.

• Parental leave

  Undang-Undang Kesejahteraan Ibu dan Anak (UU KIA)

  3–6 months

  Maternity leave

  Working mothers have at least three months, with up to three additional months only for specified special conditions supported by a doctor’s certificate.

• Unpaid wages

  LAPOR MENAKER

  LAPOR MENAKER

  Claim authority

  The ministry’s official channel accepts labour-norm and industrial-relations complaints; the inspected ministry report explicitly includes wage-norm complaints handled by central and regional labour inspectors.

Method and sources

Official sources

• Direktorat Jenderal Pajak
• BPJS Ketenagakerjaan
• Euro reference exchange rates, 2 October 2026 (ECB)