What are the standard working hours in Indonesia?

The standard working hours in Indonesia total 40 hours per week. These hours can be organized in one of two ways:

• 7 hours per day for 6 working days per week
• 8 hours per day for 5 working days per week

Is overtime governed by law in Indonesia? If so, what are the specifics outlined by law?

In Indonesia, overtime is governed by the Labor Law and Government Regulation No. 35 of 2021 (Regulation 35). The key specifics include:

• All employees are generally entitled to overtime pay, excluding those in managerial roles who are responsible for thinking, planning, executing, and controlling operations. These individuals typically receive a higher salary and have working hours that aren't confined to normal limits.
• Overtime work is limited to a maximum of 4 hours per day and cannot exceed 18 hours per week.
• The restriction on overtime hours does not apply during weekly rest days and public holidays.
• If overtime work exceeds 4 hours, employers must provide food and drink amounting to at least 1,400 calories, which cannot be replaced with a monetary payment.

How is overtime payment calculated in Indonesia?

In Indonesia, overtime payment is calculated using different rates depending on the situation:

Regular overtime:

• 1.5 times the normal hourly rate for the first hour.
• 2 times the normal hourly rate for each subsequent hour.

Weekly rest days (for six-day workweeks):

• 2 times the normal hourly wage for the first 7 hours.
• 3 times the normal hourly wage for the 8th hour.
• 4 times the normal hourly wage for the 9th to 11th hours.

Statutory holidays (for six-day workweeks):

• 2 times the normal hourly wage for the first 5 hours.
• 3 times the normal hourly wage for the 6th hour.
• 4 times the normal hourly wage for the 7th to 9th hours.

Weekly rest days or statutory holidays (for five-day workweeks):

• 2 times the normal hourly wage for the first 8 hours.
• 3 times the normal hourly wage for the 9th hour.
• 4 times the normal hourly wage for the 10th to 12th hours.

How is the time off in lieu payment calculated in Indonesia?

In Indonesia, the calculation of the time off in lieu payment follows the salary proration calculation.

What are the eligibility rules for time off in lieu in Indonesia?

In Indonesia, there are no specific regulations governing time off in lieu.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Indonesia?

In Indonesia, the employment agreement should be signed by the payroll cutoff date within the month to ensure proper payroll processing.

Can employment agreements be backdated in Indonesia?

In Indonesia, employment agreements cannot be backdated.