Wage Rates

Indonesia has a competitive average wage rate in Asia although there are considerable differences between industries and locations. For example, wages in the oil industry are much higher than those in the agricultural sector.

Minimum wage for unskilled worker - commonly referred to as (Upah Minimum Regional - Regional Minimum Wage Rates) - is regulated through the Decree of the Minister of Manpower. It is applied to each province and regularly reviewed after certain period.

 

Fringe Benefits

Fringe benefits commonly include:

• Payment of labors' income tax due on salary and wages
• Payment on labors' insurance premium (Jamsostek or other insurance coverage)
• An annual bonus of one-month pay called THR (Tunjangan Hari Raya - Religious Gratification), usually paid at a couple days before Lebaran (the annual Moslem celebration) to all employees regardless of their religion
• Medical expenses
• Travel and meal allowances, work clothes and the like.
• Loans: short-term loans, credits for vehicle and/or housing, etc