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There is no set number of days for sick leave in Indonesia. Instead, employees' salaries are reduced depending on how long the employee will be absent.
Indonesia has various public holidays annually. In addition to official public holidays, the government also allocates joint leaves (“collective leave days”), in which public servants will be on leave, but not for other groups.
In 2024 itself, there are a total of 17 days of PHs, with 10 days of collective leave.
According to ASEAN Briefing, the country counts four different types of holidays:
- Religious,
- National,
- International, and
- Commemorative
In line with the holidays, employers are required to pay religious holiday allowance, or Tunjangan Hari Raya (THR), to their employees. For clarification, the THR is a yearly bonus given to employees at least one week before the start of the religious holiday observed by the employee. This is based on the employee’s religion, and the bonus will be equivalent to one month’s salary according to their period of employment.
All employees, whether permanent or contract-based, are eligible for THR.
Religious holidays that are recognised for THR payment are:
- Eid-il-Fitri for Muslims;
- Christmas for Catholics and Protestants (considered as two different religions in Indonesia);
- Nyepi for Balinese Hindus;
- Vesak for Buddhists, and
- Chinese New Year for Confucianism.
The amount is paid in Indonesian rupiah, based on the employees’ service period.
- Employees who have worked over 12 continuous months are entitled to THR equivalent of one month’s salary.
- On the other hand, employees who have served one month or more but less than 12 months will receive an amount calculated on a pro-rata basis using the formula: (Service period/12) x one month’s salary.
The THR also applies to freelance workers. Those working for more than 12 continuous months must receive the equivalent of one month’s salary, which is calculated on the average salary they received throughout this period. For those working for more than a month and less than 12, the THR is calculated based on the average monthly salary throughout the employment period.
Should a business fail to pay the THR, it will be fined 5% of the THR amount, to be used for the employees’ welfare. This sanction does not waive the employer’s obligation to pay the THR. On top of financial sanctions, employers will be subject to administrative sanctions for failure to pay the THR. These are:
- Restriction of business activities;
- Permanent or temporary suspension of production facilities, or
- Suspension of business activities
Employees will be able to report their employer to the Ministry of Manpower (Kementerian Ketenagakerjaan) Rep if the company delays or does not pay the THR bonus. Only businesses with explicit permission from the ministry can delay paying this allowance.
For more clarity, other administrative sanctions include:
- A fine of 5% of the total THR owed to the employee;
- A written warning;
- Restrictions on business activities, including delays in receiving business permits or restrictions in the production capacity of goods and services;
- Temporary suspension of all production, and
- Suspension of business activities within a certain period.
Sanctions are given in stages and do not involve a waive on the employer’s obligations to pay the THR. Further, unpaid THR from previous years must also be paid in full.
In the event the employer still does not pay the THR even after sanctions are implemented, then the employee has the right to take their employer to the Industrial Relations Court.
View Kementerian Ketenagakerjaan's Circular Letter on the THR 2024 here.
A quick overview of other leaves are as follows.
Paid annual leave
Under the Manpower Law, all employees are entitled to 12 days of annual leave per year.
Maternity and paternity leave
Maternity leave for mothers lasts three months, on full pay. Half should be taken before birth, and the remainder after birth. Additionally, female employees are entitled to two days of paid absence during the first and second days of the menstrual cycle.
Meanwhile, fathers are entitled to two days’ leave on full pay.
Sick leave
There is no set number of days for sick leave in Indonesia. Employees' salaries are reduced depending on how long the employee will be absent.
- Employer pays 100% of compensation for 0 to four months;
- Employer pays 75% of compensation for four to eight months;
- Employer pays 50% of compensation for eight to 12 months; and
- Employer pays 25% of compensation for the first 12 months.
Details in this guide have been adapted from ASEAN Briefing.
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