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The law

Employing staff in Bali: contracts, wages and social security

A foreigner who runs a company, a villa business or a household in Bali and employs Indonesian staff takes on duties under the Manpower law. This page sets out the written contract, working hours and overtime, the 2026 minimum wages of Bali, the religious holiday allowance (THR), social security through BPJS Ketenagakerjaan, ending a job, registering as an employer and where to complain. It says where the texts are silent, in conflict or may change.

Last checked 6 October 2026

Draft, under notary review

General information, not legal advice.

How to read this page

This page is for a foreigner who employs Indonesian people in Bali: through a PT PMA, an Indonesian company, a villa or guesthouse business, or in a household. It sets out the texts with the article and says where we found them silent or in conflict. It is general information, not legal advice.

We used the texts in force on 6 October 2026: UU 13/2003 on manpower (Ketenagakerjaan) as changed by UU 6/2023, the Constitutional Court decision 168/PUU-XXI/2023 on UU 6/2023, PP 35/2021 (fixed-term contracts, working time, termination), PP 36/2021 on wages as changed by PP 51/2023 and PP 49/2025, the regulations on the BPJS Ketenagakerjaan programmes, the governor of Bali's decrees on the 2026 minimum wage, and for household workers UU 2/2026.

A press report of 6 October 2026 (Kontan, from Kompas.com; not an official text) says that on 5 October 2026 Commission IX of the House of Representatives and the government agreed a bill on employment protection (RUU Pelindungan Ketenagakerjaan, 23 chapters and 313 articles) and sent it to the House plenary session of 6 October 2026. We could not confirm this from an official text, nor the outcome of that session, a promulgation number or a date of entry into force, and we did not read the text of the bill: the official page of the House refused our request and we did not work around it. A law takes effect as its own text says, usually on promulgation, and if the bill becomes law its transitional chapter will decide which of the rules below stay. Check the official text before you rely on a section.

Not covered: hiring a foreigner and the work permit (the page on the work permit), the company itself (the page on the PT PMA), tax on salaries (PPh 21; the page on tax deadlines holds the monthly dates), BPJS Kesehatan, the health insurance (the page on health insurance), staff supplied by a manpower provider (outsourcing, Permenaker 7/2026), trade unions, bonuses and how to find staff.

Nothing here is a way to pay less than the law requires. Where an exception exists, the page names it and its condition.

  1. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, Pasal 1 dan seluruh batang tubuh 6 October 2026
  2. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 dan Pasal 184 huruf b 6 October 2026
  3. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 1 sampai 21 6 October 2026
  4. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja 6 October 2026
  5. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan 6 October 2026
  6. Peraturan Pemerintah Nomor 49 Tahun 2025 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal I dan Pasal II 6 October 2026
  7. Undang-Undang Nomor 2 Tahun 2026 tentang Pelindungan Pekerja Rumah Tangga, Pasal 1, 36 dan 37 6 October 2026
  8. Kontan (dari Kompas.com), DPR-Pemerintah Sepakat Sahkan RUU Pelindungan Ketenagakerjaan Hari Ini, 6 Oktober 2026 (berita, bukan teks resmi) 6 October 2026

The main rules at a glance

The rows follow the questions an employer asks first. The right column gives the articles; the sections below explain each point and say what we could not confirm.

The main rules at a glance
TopicWhat the texts sayArticles
Form of the contractA permanent contract (PKWTT) may be oral, and then the employer gives a written letter of appointment. A fixed-term contract (PKWT) must be written, in Indonesian and Latin letters, and the employer registers it online within 3 working days.UU 13/2003 Pasal 63(1); UU 6/2023 Pasal 81 angka 13 (Pasal 57(1)) as the Court reads it; PP 35/2021 Pasal 2(2), 14(1)
Fixed-term contractOnly for work that will end in a set time (temporary, seasonal, new product), never for permanent work. At most 5 years, extensions included. No probation. At its end the employer pays compensation of one month's wage for every 12 months worked.UU 6/2023 Pasal 81 angka 15 (Pasal 59); PP 35/2021 Pasal 5, 8(1) and (2), 12, 15, 16(1)
ProbationOnly in a permanent contract, at most 3 months, and the wage may not be below the minimum wage.UU 13/2003 Pasal 60(1) and (2)
Working time7 hours a day and 40 hours a week in a six-day week, or 8 hours a day and 40 hours a week in a five-day week.UU 6/2023 Pasal 81 angka 23 (Pasal 77(2)); PP 35/2021 Pasal 21(2)
OvertimeOnly on the employer's order and the worker's agreement, in writing or digital. At most 4 hours a day and 18 hours a week. Paid 1.5 times the hourly wage for the first hour and 2 times for each next hour; the hourly wage is 1/173 of the monthly wage.UU 6/2023 Pasal 81 angka 24 (Pasal 78(1) and (2)); PP 35/2021 Pasal 26(1), 28, 31(1), 32(2)
Rest and leaveA break of half an hour after 4 hours of work. One rest day a week in a six-day week, two in a five-day week. At least 12 working days of annual leave after 12 months of continuous work.UU 6/2023 Pasal 81 angka 25 (Pasal 79) as the Court reads it; PP 35/2021 Pasal 22
Minimum wage 2026Rp3,207,459 a month for the province of Bali. Higher figures for Badung, Denpasar, Gianyar and Tabanan, and sectoral figures for star hotels. The table below gives them. All took effect on 1 January 2026.Kepgub Bali 1011/03-M/HK/2025 and 1021/03-M/HK/2025; UU 6/2023 Pasal 81 angka 28 (Pasal 88E(2))
THRDue to every worker with at least one month of service, permanent or fixed-term. One month's wage after 12 months, in proportion before. Paid in rupiah at the latest 7 days before the worker's own religious holiday: for a Hindu worker, Nyepi.Permenaker 6/2016 Pasal 1(2), 2, 3, 5(4), 6; SE Menaker M/3/HK.04.00/III/2026
Social securityThe employer registers itself and its workers with BPJS Ketenagakerjaan. JKK and JKM are paid by the employer; JHT is 5.7% of the wage (3.7% employer, 2% worker); JP is 3% (2% employer, 1% worker); JKP is not charged separately.UU 24/2011 Pasal 15(1), 19; PP 44/2015 Pasal 16, 18; PP 46/2015 Pasal 16; PP 45/2015 Pasal 28; PP 6/2025 Pasal I angka 2
Ending a jobThe employer must try to avoid it, give the reason in a notice letter (the text says "paling lama 14 hari kerja sebelum"; we read it as a notice delivered at least 14 working days before), and, if the worker refuses and talks fail, wait for a final decision of the dispute bodies. Severance, long-service pay and rights replacement follow a table that is a minimum.UU 6/2023 Pasal 81 angka 40 and 47 (Pasal 151, 156) as the Court reads them; PP 35/2021 Pasal 37, 40
Registering as an employerReport to the labour ministry within 30 days of starting the business and every year in December; register with BPJS Ketenagakerjaan; make a company regulation from 10 workers; keep a wage structure and scale.UU 7/1981 Pasal 6, 7; Permenaker 18/2017 Pasal 5; UU 13/2003 Pasal 108(1); PP 36/2021 Pasal 21
Topic
Form of the contract
What the texts say
A permanent contract (PKWTT) may be oral, and then the employer gives a written letter of appointment. A fixed-term contract (PKWT) must be written, in Indonesian and Latin letters, and the employer registers it online within 3 working days.
Articles
UU 13/2003 Pasal 63(1); UU 6/2023 Pasal 81 angka 13 (Pasal 57(1)) as the Court reads it; PP 35/2021 Pasal 2(2), 14(1)
Topic
Fixed-term contract
What the texts say
Only for work that will end in a set time (temporary, seasonal, new product), never for permanent work. At most 5 years, extensions included. No probation. At its end the employer pays compensation of one month's wage for every 12 months worked.
Articles
UU 6/2023 Pasal 81 angka 15 (Pasal 59); PP 35/2021 Pasal 5, 8(1) and (2), 12, 15, 16(1)
Topic
Probation
What the texts say
Only in a permanent contract, at most 3 months, and the wage may not be below the minimum wage.
Articles
UU 13/2003 Pasal 60(1) and (2)
Topic
Working time
What the texts say
7 hours a day and 40 hours a week in a six-day week, or 8 hours a day and 40 hours a week in a five-day week.
Articles
UU 6/2023 Pasal 81 angka 23 (Pasal 77(2)); PP 35/2021 Pasal 21(2)
Topic
Overtime
What the texts say
Only on the employer's order and the worker's agreement, in writing or digital. At most 4 hours a day and 18 hours a week. Paid 1.5 times the hourly wage for the first hour and 2 times for each next hour; the hourly wage is 1/173 of the monthly wage.
Articles
UU 6/2023 Pasal 81 angka 24 (Pasal 78(1) and (2)); PP 35/2021 Pasal 26(1), 28, 31(1), 32(2)
Topic
Rest and leave
What the texts say
A break of half an hour after 4 hours of work. One rest day a week in a six-day week, two in a five-day week. At least 12 working days of annual leave after 12 months of continuous work.
Articles
UU 6/2023 Pasal 81 angka 25 (Pasal 79) as the Court reads it; PP 35/2021 Pasal 22
Topic
Minimum wage 2026
What the texts say
Rp3,207,459 a month for the province of Bali. Higher figures for Badung, Denpasar, Gianyar and Tabanan, and sectoral figures for star hotels. The table below gives them. All took effect on 1 January 2026.
Articles
Kepgub Bali 1011/03-M/HK/2025 and 1021/03-M/HK/2025; UU 6/2023 Pasal 81 angka 28 (Pasal 88E(2))
Topic
THR
What the texts say
Due to every worker with at least one month of service, permanent or fixed-term. One month's wage after 12 months, in proportion before. Paid in rupiah at the latest 7 days before the worker's own religious holiday: for a Hindu worker, Nyepi.
Articles
Permenaker 6/2016 Pasal 1(2), 2, 3, 5(4), 6; SE Menaker M/3/HK.04.00/III/2026
Topic
Social security
What the texts say
The employer registers itself and its workers with BPJS Ketenagakerjaan. JKK and JKM are paid by the employer; JHT is 5.7% of the wage (3.7% employer, 2% worker); JP is 3% (2% employer, 1% worker); JKP is not charged separately.
Articles
UU 24/2011 Pasal 15(1), 19; PP 44/2015 Pasal 16, 18; PP 46/2015 Pasal 16; PP 45/2015 Pasal 28; PP 6/2025 Pasal I angka 2
Topic
Ending a job
What the texts say
The employer must try to avoid it, give the reason in a notice letter (the text says "paling lama 14 hari kerja sebelum"; we read it as a notice delivered at least 14 working days before), and, if the worker refuses and talks fail, wait for a final decision of the dispute bodies. Severance, long-service pay and rights replacement follow a table that is a minimum.
Articles
UU 6/2023 Pasal 81 angka 40 and 47 (Pasal 151, 156) as the Court reads them; PP 35/2021 Pasal 37, 40
Topic
Registering as an employer
What the texts say
Report to the labour ministry within 30 days of starting the business and every year in December; register with BPJS Ketenagakerjaan; make a company regulation from 10 workers; keep a wage structure and scale.
Articles
UU 7/1981 Pasal 6, 7; Permenaker 18/2017 Pasal 5; UU 13/2003 Pasal 108(1); PP 36/2021 Pasal 21
  1. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, Pasal 60, 62, 63 6 October 2026
  2. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 12 sampai 15, 23 sampai 25, 28, 40, 47 6 October 2026
  3. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 3, 4, 6, 18, 19, 21 6 October 2026
  4. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 2, 8, 12 sampai 17, 21 sampai 32, 37 sampai 40 6 October 2026
  5. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 21, 23, 24 6 October 2026
  6. Keputusan Gubernur Bali Nomor 1011/03-M/HK/2025 tentang Upah Minimum Provinsi dan Upah Minimum Sektoral Provinsi Bali Tahun 2026 (19 Desember 2025), dengan Pengumuman B.21.500.15/17588/IV/DISNAKER.ESDM 6 October 2026
  7. Keputusan Gubernur Bali Nomor 1021/03-M/HK/2025 tentang Upah Minimum Kota/Kabupaten dan Upah Minimum Sektoral Kota/Kabupaten Tahun 2026 (23 Desember 2025), dengan Pengumuman B.21.500.15/17641/IV/DISNAKER.ESDM 6 October 2026
  8. Peraturan Menteri Ketenagakerjaan Nomor 6 Tahun 2016 tentang Tunjangan Hari Raya Keagamaan bagi Pekerja/Buruh di Perusahaan, Pasal 1 sampai 6 6 October 2026
  9. Surat Edaran Menteri Ketenagakerjaan Nomor M/3/HK.04.00/III/2026 tentang Pelaksanaan Pemberian Tunjangan Hari Raya Keagamaan Tahun 2026 bagi Pekerja/Buruh di Perusahaan (2 Maret 2026) 6 October 2026
  10. Undang-Undang Nomor 24 Tahun 2011 tentang Badan Penyelenggara Jaminan Sosial, Pasal 15 dan 19 6 October 2026
  11. Peraturan Pemerintah Nomor 44 Tahun 2015 tentang Penyelenggaraan Program Jaminan Kecelakaan Kerja dan Jaminan Kematian, Pasal 16 dan 18 6 October 2026
  12. Peraturan Pemerintah Nomor 46 Tahun 2015 tentang Penyelenggaraan Program Jaminan Hari Tua, Pasal 16 6 October 2026
  13. Peraturan Pemerintah Nomor 45 Tahun 2015 tentang Penyelenggaraan Program Jaminan Pensiun, Pasal 28 6 October 2026
  14. Peraturan Pemerintah Nomor 6 Tahun 2025 tentang Perubahan atas Peraturan Pemerintah Nomor 37 Tahun 2021, Pasal I angka 2 6 October 2026
  15. Undang-Undang Nomor 7 Tahun 1981 tentang Wajib Lapor Ketenagakerjaan di Perusahaan, Pasal 6 dan 7 6 October 2026
  16. Peraturan Menteri Ketenagakerjaan Nomor 18 Tahun 2017 tentang Tata Cara Wajib Lapor Ketenagakerjaan di Perusahaan dalam Jaringan, Pasal 5 6 October 2026

Which texts apply, and what changed in 2023 and 2024

The Manpower law, UU 13/2003, was changed in 2023 by UU 6/2023 (the Job Creation law), whose Pasal 81 rewrote or deleted many of its articles. This page cites those as "UU 6/2023 Pasal 81 angka N" with the article of UU 13/2003 in brackets. An article of UU 13/2003 cited alone is one we did not find among the amended or deleted ones in Pasal 81.

In 2024 the Constitutional Court decided 168/PUU-XXI/2023 on that law. Among 21 points listed with UU 6/2023 in the BPK database, it reads in a fixed-term contract a limit of five years, extensions included (Pasal 56(3)); requires a fixed-term contract to be in Indonesian and Latin letters (Pasal 57(1)); adds two rest days for a five-day week (Pasal 79(2)(b)); makes the wage structure and scale "proportional" and wages above the minimum a matter of agreement with the worker or the union (Pasal 88(3)(b), 90A, 92(1)); requires, when a worker refuses a termination and bipartite talks fail, a final decision of the dispute bodies (Pasal 151(4)); and makes the severance table a minimum ("paling sedikit", Pasal 156(2)). Where the Court changed a rule, this page states the rule as the Court reads it.

The implementing rules are PP 35/2021 and PP 36/2021. Both were made under the first Job Creation law (UU 11/2020); UU 6/2023 keeps regulations made under that law in force as long as they do not conflict with it (UU 6/2023 Pasal 184 huruf b). PP 36/2021 was changed by PP 51/2023 and, after the Court ruling, by PP 49/2025 of 17 December 2025, which brought back sectoral minimum wages. We found no text that replaces PP 35/2021: the BPK database lists no amendment, and our search was not exhaustive.

  1. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 12 sampai 71 dan Pasal 184 huruf b 6 October 2026
  2. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 3, 4, 6, 14, 18, 19, 21 6 October 2026
  3. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja 6 October 2026
  4. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan 6 October 2026
  5. Peraturan Pemerintah Nomor 51 Tahun 2023 tentang Perubahan atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 29 dan 35 6 October 2026
  6. Peraturan Pemerintah Nomor 49 Tahun 2025 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan 6 October 2026
  7. Peraturan Menteri Ketenagakerjaan Nomor 7 Tahun 2026 tentang Pekerjaan Alih Daya 6 October 2026

Contracts: permanent, fixed-term and daily

Two kinds exist. A permanent contract (PKWTT, perjanjian kerja waktu tidak tertentu) has no end date. A fixed-term contract (PKWT, perjanjian kerja waktu tertentu) rests on a period or on finishing a certain job (UU 6/2023 Pasal 81 angka 12, Pasal 56(1) and (2)). A contract may be written or oral (PP 35/2021 Pasal 2(2)). If a permanent contract is oral, the employer must give the worker a written letter of appointment with at least the name and address, the start date, the kind of work and the wage (UU 13/2003 Pasal 63).

A fixed-term contract has more rules. It must be written, in Indonesian and Latin letters (Pasal 57(1) as the Court reads it). If it is made in Indonesian and a foreign language and the readings differ, the Indonesian text counts (Pasal 57(2)). It states at least the wage and how it is paid, the start and the period, and it is signed (PP 35/2021 Pasal 13). The employer registers it online with the manpower ministry within 3 working days of signing, or in writing at the regency or city manpower office within 7 working days if the online system is not available (Pasal 14). It cannot require a probation: a probation clause is void and the time still counts as work (UU 6/2023 Pasal 81 angka 14, Pasal 58; PP 35/2021 Pasal 12).

When a fixed-term contract may be used. Only for work that by its kind will end in a set time: work done once or temporary, work expected to finish soon, seasonal work, work on a new product or activity still on trial, or work that is not fixed in kind. It may not be used for permanent work, and a fixed-term contract that breaks these rules becomes a permanent contract by law (UU 6/2023 Pasal 81 angka 15, Pasal 59(1) to (3)). The elucidation calls work permanent if it is continuous, not interrupted, not limited in time and part of the production process of the company, or not seasonal; work that depends on the weather or on a special condition is seasonal (Penjelasan Pasal 59(2)). PP 35/2021 sets the length: at most 5 years, extensions included (Pasal 8(1) and (2)); for a contract tied to a job, the Court reads the same five years into the law (Pasal 56(3) as the Court reads it). Whether the tourist high season counts as a season under PP 35/2021 Pasal 7, and whether the work of a villa cleaner or gardener is permanent work, the texts do not say.

Daily workers. Work that varies in time and volume, with pay by attendance, may be done on a daily contract if the worker works fewer than 21 days in a month. A worker who works 21 days or more for 3 months in a row or longer moves to a permanent contract by law. The daily contract is written, may be made for a group, and states at least the name and address of the employer and of the worker, the kind of work and the wage. The employer must give the worker the worker's rights, social security included (PP 35/2021 Pasal 10 and 11).

Probation. A permanent contract may require a probation of at most 3 months, and during it the employer may not pay below the minimum wage (UU 13/2003 Pasal 60). A termination in probation needs a notice letter: the text says "paling lama 7 (tujuh) hari kerja sebelum" (PP 35/2021 Pasal 37(4)); we read it as a notice delivered at least 7 working days before, which is the usual reading.

Compensation at the end of a fixed-term contract. When the contract ends, the employer pays compensation (uang kompensasi) to a worker with at least one month of continuous service: one month's wage for 12 months, and in proportion for a shorter or longer period (months worked divided by 12, times one month's wage), on the base wage and fixed allowances (UU 6/2023 Pasal 81 angka 17, Pasal 61A; PP 35/2021 Pasal 15 and 16). It is also due if a party ends the contract early, on the time worked (PP 35/2021 Pasal 17). UU 13/2003 Pasal 62, which we found unchanged, says that a party who ends a fixed-term contract before its end owes the other party the wage up to the end of the term. The two texts both stand and we found none that reconciles them. For micro and small businesses the amount of compensation is agreed between employer and worker (PP 35/2021 Pasal 16(6)).

  1. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, Pasal 60, 62, 63 dan Penjelasan Pasal 59 ayat (2) 6 October 2026
  2. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 12 sampai 17 (Pasal 56, 57, 58, 59, 61, 61A) dan Penjelasan angka 15 6 October 2026
  3. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 3 dan 4 6 October 2026
  4. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 2, 5 sampai 17, 37 6 October 2026

Working hours, overtime, rest, leave and paid absence

Working time. The week is 40 hours: 7 hours a day for six days, or 8 hours a day for five days. Some sectors or jobs may have other hours by ministerial rule, and how the hours are worked is set in the contract, the company regulation or a collective agreement (UU 6/2023 Pasal 81 angka 23, Pasal 77; PP 35/2021 Pasal 21 to 25). We did not look for a ministerial rule on hours for villas or guesthouses.

Overtime needs an order from the employer and the worker's agreement in writing or in digital form; it may be a signed list of workers who agree, and the employer keeps a list of who worked overtime and for how long (PP 35/2021 Pasal 28). It lasts at most 4 hours a day and 18 hours a week, not counting overtime on a weekly rest day or an official holiday (Pasal 26). The employer pays overtime wages, allows a reasonable rest and gives food and drink of at least 1,400 kilocalories when overtime lasts 4 hours or more; money cannot replace the food (Pasal 29). Pay is 1.5 times the hourly wage for the first hour and 2 times for each next hour (Pasal 31(1)). On a weekly rest day or an official holiday the multiples are 2, 3 and 4 times, by the hour (Pasal 31(2) and (3)). The hourly wage is 1/173 of the monthly wage (Pasal 32(2)). Workers in senior posts with unlimited hours and higher pay, named as such in the contract or regulation, get no overtime (Pasal 27).

Rest and leave. A break of at least half an hour after 4 hours of continuous work, not counted as work time. Weekly rest of 1 day in a six-day week or 2 days in a five-day week, the second day being the Court's addition. Annual leave of at least 12 working days after 12 months of continuous work, taken as the contract or regulation sets (UU 6/2023 Pasal 81 angka 25, Pasal 79, as the Court reads it). A worker who takes rest or leave gets full wages (Pasal 81 angka 26, Pasal 84).

Paid absence. The employer owes wages when the worker is sick: 100% for the first 4 months, 75% for the next 4, 50% for the next 4 and then 25% until the employer ends the job (UU 13/2003 Pasal 93(3)). Wages are also owed for 3 days when the worker marries; 2 days when a child marries, is circumcised or baptised, when the wife gives birth or miscarries, or when a spouse, parent, parent-in-law, child or son or daughter-in-law dies; 1 day when another member of the household dies (Pasal 93(4); PP 36/2021 Pasal 41). A woman who is in pain on the first and second day of her period and tells the employer need not work (UU 13/2003 Pasal 81). The employer must give reasonable time for worship that the worker's religion requires, and wages are owed when the worker cannot work because of a religious duty (Pasal 80, 93(2)(e)). A woman has 1.5 months of rest before and 1.5 months after childbirth (Pasal 82(1)). Whether a temple ceremony or a banjar duty is a religious duty in this sense, no official text we read says.

  1. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, Pasal 80, 81, 82 dan 93 6 October 2026
  2. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 23 sampai 26 (Pasal 77, 78, 79, 84) 6 October 2026
  3. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 6 dan 7 6 October 2026
  4. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 21 sampai 34 6 October 2026
  5. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 41 6 October 2026

Minimum wages in Bali for 2026

Amounts per month, all in force from 1 January 2026. The decrees list a figure by regency or city. Which figure applies to which villa or company is explained below the table.

Minimum wages in Bali for 2026
Where the work is doneMinimum wage 2026 per monthDecree
Province of Bali: Bangli, Buleleng, Jembrana, Karangasem and Klungkung, which have no figure of their own (UMP)Rp3,207,459Kepgub Bali 1011/03-M/HK/2025 of 19 December 2025, Diktum KESATU; Kepgub 1021/03-M/HK/2025, Diktum KETIGA
Badung (UMK)Rp3,791,002.57Kepgub Bali 1021/03-M/HK/2025 of 23 December 2025, Lampiran A
Denpasar (UMK)Rp3,499,878.78Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Gianyar (UMK)Rp3,316,798.48Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Tabanan (UMK)Rp3,287,678.87Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Tourism, accommodation and food and drink services (KBLI section I) in star hotels in Bangli, Buleleng, Jembrana, Karangasem and Klungkung (UMSP)Rp3,267,693Kepgub Bali 1011/03-M/HK/2025, Diktum KEDUA
Same sector, five-star and four-star hotels in Badung (UMSK)Rp3,828,912.60Kepgub Bali 1021/03-M/HK/2025, Lampiran B
Where the work is done
Province of Bali: Bangli, Buleleng, Jembrana, Karangasem and Klungkung, which have no figure of their own (UMP)
Minimum wage 2026 per month
Rp3,207,459
Decree
Kepgub Bali 1011/03-M/HK/2025 of 19 December 2025, Diktum KESATU; Kepgub 1021/03-M/HK/2025, Diktum KETIGA
Where the work is done
Badung (UMK)
Minimum wage 2026 per month
Rp3,791,002.57
Decree
Kepgub Bali 1021/03-M/HK/2025 of 23 December 2025, Lampiran A
Where the work is done
Denpasar (UMK)
Minimum wage 2026 per month
Rp3,499,878.78
Decree
Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Where the work is done
Gianyar (UMK)
Minimum wage 2026 per month
Rp3,316,798.48
Decree
Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Where the work is done
Tabanan (UMK)
Minimum wage 2026 per month
Rp3,287,678.87
Decree
Kepgub Bali 1021/03-M/HK/2025, Lampiran A
Where the work is done
Tourism, accommodation and food and drink services (KBLI section I) in star hotels in Bangli, Buleleng, Jembrana, Karangasem and Klungkung (UMSP)
Minimum wage 2026 per month
Rp3,267,693
Decree
Kepgub Bali 1011/03-M/HK/2025, Diktum KEDUA
Where the work is done
Same sector, five-star and four-star hotels in Badung (UMSK)
Minimum wage 2026 per month
Rp3,828,912.60
Decree
Kepgub Bali 1021/03-M/HK/2025, Lampiran B
  1. Keputusan Gubernur Bali Nomor 1011/03-M/HK/2025 tentang Upah Minimum Provinsi dan Upah Minimum Sektoral Provinsi Bali Tahun 2026 (19 Desember 2025), dengan Pengumuman B.21.500.15/17588/IV/DISNAKER.ESDM, Diktum KESATU, KEDUA dan KETIGA 6 October 2026
  2. Keputusan Gubernur Bali Nomor 1021/03-M/HK/2025 tentang Upah Minimum Kota/Kabupaten dan Upah Minimum Sektoral Kota/Kabupaten Tahun 2026 (23 Desember 2025), dengan Pengumuman B.21.500.15/17641/IV/DISNAKER.ESDM, Diktum KESATU sampai KEEMPAT dan Lampiran 6 October 2026
  3. Peraturan Pemerintah Nomor 49 Tahun 2025 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 25, 35A sampai 35J 6 October 2026

Paying wages: what the minimum means and how wages are paid

Which figure. The decrees give a regency or city figure for Badung, Denpasar, Gianyar and Tabanan; for the five other regencies the provincial figure and the provincial sectoral figure apply (Kepgub 1021/03-M/HK/2025, Diktum KEDUA and KETIGA). Where no sectoral figure is set for a regency with its own figure, that regency's UMK applies: Denpasar, Gianyar and Tabanan have none (announcement B.21.500.15/17641, points 3 and 4), and in Badung only four-star and five-star hotels have one; for a Badung star hotel of fewer stars the decree lists no figure and we read the Badung UMK as the one that applies. The sectoral figures name star hotels (Hotel Bintang) in section I of the standard business classification; a villa or guesthouse is not named, and we found no text that puts it in that sector. Ask the manpower office of the regency or city in writing.

What the minimum is. The minimum wage is the lowest monthly wage: the wage without allowances, or the base wage plus fixed allowances. If a company pays a base wage plus non-fixed allowances, the base wage must be at least the minimum. The employer may not pay below it (PP 36/2021 Pasal 23; UU 6/2023 Pasal 81 angka 28, Pasal 88E(2)). An agreement for less is void and the legal rule applies (Pasal 88A(4) and (5)). A wage above the minimum is agreed between the employer and the worker or the union (Pasal 90A as the Court reads it).

After one year. By the text, the minimum wage applies to a worker with less than one year of service in the company, and the wage of a worker with one year or more follows the company's wage structure and scale (UU 6/2023 Pasal 88E(1) and 92(2); PP 36/2021 Pasal 24). Next to it stands the ban on paying below the minimum (Pasal 88E(2); PP 36/2021 Pasal 23(3)). We found no official text that sets a lower floor for a worker of one year or more, and none that says the minimum stops applying. Do not read the first rule as a permission to pay less after a year.

The wage structure and scale. The employer must draw up and apply a structure and scale of wages, with regard to the company's means and productivity and to grade, post, length of service, education and competence, and tell each worker, in person, at least the scale for the worker's own post (PP 36/2021 Pasal 21 as changed by PP 49/2025). A company that asks for approval of its company regulation attaches the scale (Pasal 22).

Micro and small businesses. They are excepted from the minimum wage. They set wages by agreement with the worker, at least 50% of the average consumption of the province and at least 25% above the poverty line of the province, on data of the statistics agency (UU 6/2023 Pasal 90B; PP 36/2021 Pasal 36). The exception covers only the minimum wage rules of Pasal 23 to 35, and the business must meet criteria set in other rules (Pasal 37). PP 7/2021 Pasal 35 defines micro and small businesses by capital (micro up to Rp1,000,000,000, small above that up to Rp5,000,000,000, land and building not counted) or by annual sales (micro up to Rp2,000,000,000, small above that up to Rp15,000,000,000). We found no text that says these are the criteria of the wage exception, none that says whether a PT PMA can be a micro or small business for it, and no official amount of the two floors for Bali. Do not assume the exception: ask the manpower office in writing.

How wages are paid. In rupiah, in full for each period, to the worker or to a third party on the worker's written authority, with a pay slip that shows the details at the time of payment, directly or through a bank so that the worker can draw it on the pay date; the period is at most one month (PP 36/2021 Pasal 53, 54, 55(4), 57). At least 75% of base wage plus fixed allowances must be the base wage (UU 6/2023 Pasal 81 angka 35, Pasal 94). Deductions only for fines and damages as set in the contract, regulation or collective agreement, advances, rent of company housing or goods and debts (the last two in writing), and overpayment; all together at most 50% of each payment (PP 36/2021 Pasal 63 and 65). For a late wage the fine is 5% of the unpaid wage for each day from the fourth to the eighth day, then 1% more a day, at most 50% in a month, then interest at the highest state bank rate; the wage is still owed (Pasal 61).

The 2027 figures. We found no 2027 decree on 6 October 2026, and the 2026 decrees have no end date. The rule: the governor announces the provincial minimum wage by 21 November and the regency and city ones by 25 November, sectoral ones within 5 days after, and all take effect on 1 January of the next year (PP 36/2021 Pasal 29 as changed by PP 51/2023; Pasal 35 as changed by PP 49/2025; Pasal 35E and 35J). The yearly adjustment uses inflation, economic growth and an index between 0.50 and 0.90 set by the wage council (Pasal 26 as changed by PP 49/2025).

  1. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 27, 28, 31, 33 dan 35 (Pasal 88, 88A, 88C, 88E, 90A, 90B, 92, 94) 6 October 2026
  2. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 8 sampai 15 6 October 2026
  3. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 21 sampai 24, 29, 35 sampai 38, 53 sampai 65 6 October 2026
  4. Peraturan Pemerintah Nomor 51 Tahun 2023 tentang Perubahan atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 29 dan 35 6 October 2026
  5. Peraturan Pemerintah Nomor 49 Tahun 2025 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 21, 26, 35, 35E, 35J 6 October 2026
  6. Peraturan Pemerintah Nomor 7 Tahun 2021 tentang Kemudahan, Pelindungan, dan Pemberdayaan Koperasi dan Usaha Mikro, Kecil, dan Menengah, Pasal 35 6 October 2026

The religious holiday allowance (THR)

THR is a payment that is not wages (pendapatan non upah) which the employer must pay to workers before their religious holiday (Permenaker 6/2016 Pasal 1(1)). It is due to every worker with at least one month of continuous service, on a permanent or a fixed-term contract (Pasal 2). The amount is one month's wage after 12 months of continuous service; before that, months worked divided by 12 times one month's wage. The month's wage is the wage without allowances, or the base wage with fixed allowances; for a casual daily worker it is the average of the last 12 months, or the monthly average of the time worked if under 12 months (Pasal 3). A higher amount in the contract, the regulation, a collective agreement or established custom wins (Pasal 4).

When and how. Once a year, at the holiday of each worker: Idul Fitri for a Muslim, Christmas for a Christian, Nyepi for a Hindu, Waisak for a Buddhist, Imlek for a Confucian (Pasal 1(2), 5(1)); employer and worker may agree otherwise in the contract, regulation or collective agreement (Pasal 5(3)). It must be paid in rupiah at the latest 7 days before the holiday (Pasal 5(4), 6). The ministry's circular for 2026 (SE M/3/HK.04.00/III/2026 of 2 March 2026) repeats this, says that THR is paid in full and not in instalments, and sets up a complaints post at poskothr.kemnaker.go.id. The circular for 2027 is not out. For a Hindu worker in 2027: the page on the calendar gives Nyepi as 8 March 2027, so the latest day is 1 March 2027.

Ending and late payment. A permanent worker whose job ends from 30 days before the holiday keeps the right to THR for that year; a fixed-term worker whose contract ends before the holiday does not (Pasal 7). A worker moved to another company with service carried over gets THR from the new one if the old one paid none (Pasal 8). Late THR carries a fine of 5% of the THR due, from the end of the deadline, and the THR is still owed (Pasal 10; PP 36/2021 Pasal 62). Not paying it is an administrative offence (Pasal 11).

  1. Peraturan Menteri Ketenagakerjaan Nomor 6 Tahun 2016 tentang Tunjangan Hari Raya Keagamaan bagi Pekerja/Buruh di Perusahaan, Pasal 1 sampai 11 6 October 2026
  2. Surat Edaran Menteri Ketenagakerjaan Nomor M/3/HK.04.00/III/2026 tentang Pelaksanaan Pemberian Tunjangan Hari Raya Keagamaan Tahun 2026 bagi Pekerja/Buruh di Perusahaan (2 Maret 2026) 6 October 2026
  3. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 62 6 October 2026

BPJS Ketenagakerjaan: the five programmes and who pays

Rates are a share of the monthly wage (base wage plus fixed allowances; for a daily wage, the day's wage times 25). BPJS Kesehatan, the health insurance, is on the page on health insurance.

BPJS Ketenagakerjaan: the five programmes and who pays
ProgrammeWhat it isRate and who paysArticles
JKK (work accident)Care and cash benefits for a work accident or an occupational disease; BPJS says the cover runs from leaving home for work to returning home.0.24% to 1.74% of the monthly wage by five risk groups (0.24, 0.54, 0.89, 1.27, 1.74), fixed by BPJS for each company, all paid by the employer. For workers in JKP, 0.14 points go to JKP, so the JKK part is 0.10, 0.40, 0.75, 1.13 and 1.60.PP 44/2015 Pasal 16, 21, 25 (as changed by PP 82/2019); PP 49/2023 Pasal 16A; PP 6/2025 Pasal I angka 2
JKM (death)Cash benefits to the heirs when a participant dies other than by a work accident.0.30% of the monthly wage, paid by the employer. PP 49/2023 Pasal 18A takes 0.10 points of it for JKP, leaving 0.20%; PP 6/2025 funds JKP from the state and JKK only and does not mention JKM. We did not find which split applies.PP 44/2015 Pasal 18; PP 49/2023 Pasal 18A
JHT (old age)Savings: the contributions with their returns, paid out at 56, on permanent total disability or death, or when work ends, says BPJS.5.7% of the wage: 3.7% employer, 2% deducted from the worker.PP 46/2015 Pasal 16
JP (pension)Monthly or lump-sum pension at retirement age, on permanent total disability or on death, says BPJS.3% of the wage: 2% employer, 1% worker, on a wage up to a ceiling that BPJS sets each year (Rp7,000,000 in 2015; Rp10,547,000 on the BPJS page of 17 December 2025; we did not find a later figure on its website).PP 45/2015 Pasal 28, 29
JKP (loss of work)Cash of 60% of the wage for up to 6 months, job information and training, after 12 months of contributions in the last 24 months, for a worker whose employer ends the job; not on resignation. Only for Indonesian citizens under 54 at enrolment.0.36% of the wage (on wage up to Rp5,000,000): 0.22% from the state and 0.14% taken from JKK. No separate charge to employer or worker.PP 37/2021 Pasal 4, 19, 20; PP 6/2025 Pasal I angka 1, 2, 3, 5
Programme
JKK (work accident)
What it is
Care and cash benefits for a work accident or an occupational disease; BPJS says the cover runs from leaving home for work to returning home.
Rate and who pays
0.24% to 1.74% of the monthly wage by five risk groups (0.24, 0.54, 0.89, 1.27, 1.74), fixed by BPJS for each company, all paid by the employer. For workers in JKP, 0.14 points go to JKP, so the JKK part is 0.10, 0.40, 0.75, 1.13 and 1.60.
Articles
PP 44/2015 Pasal 16, 21, 25 (as changed by PP 82/2019); PP 49/2023 Pasal 16A; PP 6/2025 Pasal I angka 2
Programme
JKM (death)
What it is
Cash benefits to the heirs when a participant dies other than by a work accident.
Rate and who pays
0.30% of the monthly wage, paid by the employer. PP 49/2023 Pasal 18A takes 0.10 points of it for JKP, leaving 0.20%; PP 6/2025 funds JKP from the state and JKK only and does not mention JKM. We did not find which split applies.
Articles
PP 44/2015 Pasal 18; PP 49/2023 Pasal 18A
Programme
JHT (old age)
What it is
Savings: the contributions with their returns, paid out at 56, on permanent total disability or death, or when work ends, says BPJS.
Rate and who pays
5.7% of the wage: 3.7% employer, 2% deducted from the worker.
Articles
PP 46/2015 Pasal 16
Programme
JP (pension)
What it is
Monthly or lump-sum pension at retirement age, on permanent total disability or on death, says BPJS.
Rate and who pays
3% of the wage: 2% employer, 1% worker, on a wage up to a ceiling that BPJS sets each year (Rp7,000,000 in 2015; Rp10,547,000 on the BPJS page of 17 December 2025; we did not find a later figure on its website).
Articles
PP 45/2015 Pasal 28, 29
Programme
JKP (loss of work)
What it is
Cash of 60% of the wage for up to 6 months, job information and training, after 12 months of contributions in the last 24 months, for a worker whose employer ends the job; not on resignation. Only for Indonesian citizens under 54 at enrolment.
Rate and who pays
0.36% of the wage (on wage up to Rp5,000,000): 0.22% from the state and 0.14% taken from JKK. No separate charge to employer or worker.
Articles
PP 37/2021 Pasal 4, 19, 20; PP 6/2025 Pasal I angka 1, 2, 3, 5
  1. Peraturan Pemerintah Nomor 44 Tahun 2015 tentang Penyelenggaraan Program Jaminan Kecelakaan Kerja dan Jaminan Kematian, Pasal 16, 18, 19, 21 dan 25 6 October 2026
  2. Peraturan Pemerintah Nomor 82 Tahun 2019 tentang Perubahan atas Peraturan Pemerintah Nomor 44 Tahun 2015, Pasal I angka 1 6 October 2026
  3. Peraturan Pemerintah Nomor 49 Tahun 2023 tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 44 Tahun 2015, Pasal 15, 16A dan 18A 6 October 2026
  4. Peraturan Pemerintah Nomor 46 Tahun 2015 tentang Penyelenggaraan Program Jaminan Hari Tua, Pasal 16 6 October 2026
  5. Peraturan Pemerintah Nomor 45 Tahun 2015 tentang Penyelenggaraan Program Jaminan Pensiun, Pasal 28 dan 29 6 October 2026
  6. Peraturan Pemerintah Nomor 37 Tahun 2021 tentang Penyelenggaraan Program Jaminan Kehilangan Pekerjaan, Pasal 4, 19 dan 20 6 October 2026
  7. Peraturan Pemerintah Nomor 6 Tahun 2025 tentang Perubahan atas Peraturan Pemerintah Nomor 37 Tahun 2021, Pasal I angka 1, 2, 3, 5 6 October 2026
  8. BPJS Ketenagakerjaan, Berapa Besaran Iuran JHT, JKK, JKM, JP dan JKP? (17 Desember 2025, dibaca 6 Oktober 2026) 6 October 2026

What the employer must do for BPJS Ketenagakerjaan

The duty. The employer registers itself and its workers with BPJS Ketenagakerjaan in the programmes it takes part in, giving complete and correct data on itself, the workers and their families (UU 24/2011 Pasal 15(1) and (2)). It collects the worker's share from the wage and pays it with its own share to BPJS (Pasal 19(1) and (2)). Payment is monthly, by the 15th of the next month, with data on all workers; if the 15th is a holiday, on the next working day. A late payment carries a fine of 2% a month on the amount due (PP 46/2015 Pasal 19 and 20; PP 44/2015 Pasal 21 and 22). A foreigner who works in Indonesia for at least six months is also a participant (PP 44/2015 Pasal 15(2)(c) as changed by PP 49/2023); that belongs to the page on the work permit.

Which programmes. By business size, large and medium businesses must be in JKK, JHT, JP and JKM; small businesses in JKK, JHT and JKM; micro businesses in JKK and JKM (Perpres 109/2013 Pasal 6(3)). The definition of a large business lists foreign businesses (usaha asing) among them, a business whose net worth or annual sales are above a medium one (Pasal 1(13)). For JKP, PP 6/2025 Pasal 4(3) names large and medium businesses in JKK, JHT, JP and JKM, and micro and small businesses at least in JKK, JHT and JKM. For a micro business the two texts differ on JHT and we found none that says which prevails. Ask BPJS Ketenagakerjaan which applies to your business and get the answer in writing.

How to register. A representative of the company registers through the BPJS Ketenagakerjaan website or at a branch office, with the company tax number (NPWP), the owner's identity card, each worker's identity card, a business licence or number (NIB) and an e-mail address. BPJS says the card and certificate come within 7 days of payment, at no charge, and that later reports go through its SIPP Online system. Complaints: Care Center 175 (BPJS page, read on 6 October 2026).

If the employer does not. Failure to register or to give data brings a written warning (at most two, each for at most 10 working days), then a fine, then refusal of certain public services by the government or the region at BPJS's request. For an employer these include business-related licences, licences to join project tenders, the permit to employ a foreign worker, the permit of a manpower provider company and the building permit (IMB) (UU 24/2011 Pasal 17; PP 86/2013 Pasal 5 to 9). Failing to pay or to pass on the contributions is also a crime (UU 24/2011 Pasal 55: prison of up to 8 years or a fine of up to Rp1,000,000,000 as written). UU 1/2026 restates it as prison of up to 8 years or a fine of up to category V, which is Rp500,000,000 (Lampiran I nomor 93; UU 1/2023 Pasal 79(1)(e)).

  1. Undang-Undang Nomor 24 Tahun 2011 tentang Badan Penyelenggara Jaminan Sosial, Pasal 15, 17, 19 dan 55 6 October 2026
  2. Peraturan Presiden Nomor 109 Tahun 2013 tentang Penahapan Kepesertaan Program Jaminan Sosial, Pasal 1 angka 13 dan Pasal 6 6 October 2026
  3. Peraturan Pemerintah Nomor 6 Tahun 2025 tentang Perubahan atas Peraturan Pemerintah Nomor 37 Tahun 2021, Pasal I angka 1 (Pasal 4) 6 October 2026
  4. Peraturan Pemerintah Nomor 44 Tahun 2015 tentang Penyelenggaraan Program Jaminan Kecelakaan Kerja dan Jaminan Kematian, Pasal 21 dan 22 6 October 2026
  5. Peraturan Pemerintah Nomor 46 Tahun 2015 tentang Penyelenggaraan Program Jaminan Hari Tua, Pasal 19 dan 20 6 October 2026
  6. Peraturan Pemerintah Nomor 86 Tahun 2013 tentang Tata Cara Pengenaan Sanksi Administratif, Pasal 5 sampai 9 6 October 2026
  7. BPJS Ketenagakerjaan, Manfaat Penerima Upah: dokumen pendaftaran, kanal pendaftaran, Call center 175 (dibaca 6 Oktober 2026) 6 October 2026
  8. Undang-Undang Nomor 1 Tahun 2026 tentang Penyesuaian Pidana, Lampiran I nomor 93 6 October 2026
  9. Undang-Undang Nomor 1 Tahun 2023 tentang Kitab Undang-Undang Hukum Pidana, Pasal 79, Pasal 79 6 October 2026

Ending a job: notice, grounds and who decides

The employer, the worker, the union and the government must try to avoid termination (PHK). If it cannot be avoided, the employer tells the worker, and the union if the worker is a member, the intent and the reason, in a notice letter delivered properly. The text says "paling lama 14 (empat belas) hari kerja sebelum" the termination, and "paling lama 7 (tujuh) hari kerja sebelum" if it falls in the probation (UU 6/2023 Pasal 81 angka 40, Pasal 151(1) and (2); PP 35/2021 Pasal 37(3) and (4)); we read it as a notice delivered no later than 14 (7) working days before, which is the usual reading. No notice is needed when the worker resigns, a fixed-term contract ends, retirement age under the contract is reached or the worker dies (UU 6/2023 Pasal 81 angka 41, Pasal 151A). A worker who refuses the termination says so in writing with reasons within 7 working days of the notice (PP 35/2021 Pasal 39(1)); the employer reports an accepted termination to the labour office (Pasal 38).

If the worker refuses. The matter goes to bipartite talks by consensus. If they fail, then as the Court reads Pasal 151(4), the termination can be made only after a decision of the industrial dispute body that has become final (UU 6/2023 Pasal 151(3) and (4) as the Court reads them). PP 35/2021 Pasal 39(3) says only that the next step follows the dispute mechanism; we followed the Court. During the dispute both sides keep their duties, wages included, and the employer may suspend the worker on pay (UU 6/2023 Pasal 81 angka 49, Pasal 157A as the Court reads it).

What an employer may not do. It may not terminate a worker for illness shown by a doctor for up to 12 months, for a duty to the state, for religious observance, marriage, pregnancy, childbirth or nursing, a family tie with a colleague, union activity, a complaint against the employer for a crime, differences of religion, race, sex, physical condition or status, or permanent disability or illness caused by the work. Such a termination is void and the worker must be taken back (UU 6/2023 Pasal 81 angka 43, Pasal 153).

The grounds the law lists. A merger, takeover or split of the company when the worker will not continue or the employer will not accept the worker; efficiency to prevent or after a loss; closure after two years of loss or by force majeure; postponement of debt payment; bankruptcy; the employer's serious misconduct on the worker's request; the worker's resignation on written notice 30 days before, with no service bond; absence for 5 working days or more without written explanation after two proper written summons; breach of the contract or regulation after a first, second and third warning, each valid for up to 6 months; detention for 6 months; sickness or disability beyond 12 months; retirement; death. The contract, regulation or collective agreement may add grounds (UU 6/2023 Pasal 81 angka 45, Pasal 154A). A takeover of the company is on the page on selling and leaving, which holds the notice to employees under the company law.

What is paid. The employer pays severance (uang pesangon) and long-service pay (uang penghargaan masa kerja, UPMK) as the ground requires, and always rights replacement (uang penggantian hak): unused annual leave, the return fare of the worker and family to where the worker was hired, and what the contract adds (UU 6/2023 Pasal 81 angka 47, Pasal 156; PP 35/2021 Pasal 40). The table of the base amounts and the multiples by ground follow.

  1. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 40 sampai 49 (Pasal 151, 151A, 153, 154A, 156, 157A) 6 October 2026
  2. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 18, 19, 20, 21 6 October 2026
  3. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 37 sampai 59 6 October 2026

Severance: the base table and the multiples by ground

Base pesangon by years of service: under 1 year, 1 month of wage; 1 to under 2 years, 2 months; and one more month for each further year, to 9 months for 8 years or more. Base UPMK: 3 to under 6 years, 2 months; 6 to under 9, 3; 9 to under 12, 4; 12 to under 15, 5; 15 to under 18, 6; 18 to under 21, 7; 21 to under 24, 8; 24 years or more, 10 months. The base is the base wage and fixed allowances. The Court reads the amounts as a minimum. The multiples below apply to the base pesangon; UPMK is paid once the table gives it, at 1 times except where the row says none.

Severance: the base table and the multiples by ground
GroundPesangon (times the base)Articles
Merger or split when the worker will not continue; takeover without change of terms; efficiency to prevent a loss; closure not caused by a loss; debt postponement not caused by a loss; termination on the worker's request because of the employer's conduct1PP 35/2021 Pasal 41, 42(1), 43(2), 44(2), 46(2), 48
Force majeure without closure of the company0.75PP 35/2021 Pasal 45(2)
Takeover with changed terms and the worker unwilling; efficiency because of a loss; closure after a loss; force majeure with closure; debt postponement with a loss; bankruptcy; breach after three warnings0.5PP 35/2021 Pasal 42(2), 43(1), 44(1), 45(1), 46(1), 47, 52(1)
Retirement1.75PP 35/2021 Pasal 56
Sickness or disability beyond 12 months; death of the worker (paid to the heirs)2PP 35/2021 Pasal 55, 57
Detention of the worker for 6 months on suspicion of a crime, when it causes the company no lossNone for pesangon; UPMK 1 time; and rights replacementPP 35/2021 Pasal 54(2), 54(5)
Same detention when it causes the company a lossNone: rights replacement and a separation payment (uang pisah) set in the contract, regulation or collective agreementPP 35/2021 Pasal 54(1), 54(4)
Resignation on proper notice; absence of 5 working days with two summons; urgent breach; the dispute body finds the employer did not commit the acts allegedNone: rights replacement and a separation payment (uang pisah) set in the contract, regulation or collective agreementPP 35/2021 Pasal 49, 50, 51, 52(2)
Micro and small businessesThe amounts are agreed between employer and workerPP 35/2021 Pasal 59
Ground
Merger or split when the worker will not continue; takeover without change of terms; efficiency to prevent a loss; closure not caused by a loss; debt postponement not caused by a loss; termination on the worker's request because of the employer's conduct
Pesangon (times the base)
1
Articles
PP 35/2021 Pasal 41, 42(1), 43(2), 44(2), 46(2), 48
Ground
Force majeure without closure of the company
Pesangon (times the base)
0.75
Articles
PP 35/2021 Pasal 45(2)
Ground
Takeover with changed terms and the worker unwilling; efficiency because of a loss; closure after a loss; force majeure with closure; debt postponement with a loss; bankruptcy; breach after three warnings
Pesangon (times the base)
0.5
Articles
PP 35/2021 Pasal 42(2), 43(1), 44(1), 45(1), 46(1), 47, 52(1)
Ground
Retirement
Pesangon (times the base)
1.75
Articles
PP 35/2021 Pasal 56
Ground
Sickness or disability beyond 12 months; death of the worker (paid to the heirs)
Pesangon (times the base)
2
Articles
PP 35/2021 Pasal 55, 57
Ground
Detention of the worker for 6 months on suspicion of a crime, when it causes the company no loss
Pesangon (times the base)
None for pesangon; UPMK 1 time; and rights replacement
Articles
PP 35/2021 Pasal 54(2), 54(5)
Ground
Same detention when it causes the company a loss
Pesangon (times the base)
None: rights replacement and a separation payment (uang pisah) set in the contract, regulation or collective agreement
Articles
PP 35/2021 Pasal 54(1), 54(4)
Ground
Resignation on proper notice; absence of 5 working days with two summons; urgent breach; the dispute body finds the employer did not commit the acts alleged
Pesangon (times the base)
None: rights replacement and a separation payment (uang pisah) set in the contract, regulation or collective agreement
Articles
PP 35/2021 Pasal 49, 50, 51, 52(2)
Ground
Micro and small businesses
Pesangon (times the base)
The amounts are agreed between employer and worker
Articles
PP 35/2021 Pasal 59
  1. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 40 sampai 57 dan 59 6 October 2026
  2. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (amar dimuat pada halaman UU 6/2023 di JDIH BPK), amar angka 21 6 October 2026

Registering as an employer, step by step

The labour report (WLKP). Every business that employs workers for pay, with or without a legal form, must report its manpower to the labour ministry in writing: within 30 days after it starts, and then every year; and 30 days before it moves, stops or closes (UU 7/1981 Pasal 4, 6, 7, 8). The law also treats a social or other undertaking with a manager that employs people like a business (Pasal 2). Under Permenaker 18/2017 the report is made online, the yearly one in December, and it costs nothing (Pasal 3, 5, 6). Since Permenaker 4/2019, the first data entered in OSS give the NIB, which also serves as the WLKP number, and later periods are reported at wajiblapor.kemnaker.go.id (Pasal 5A). The ministry's guide says the system is linked to OSS through the NIB, to the population register through the NIK and to BPJS Ketenagakerjaan through the company participation number, and uses an account at Sisnaker; the guide has no date and we did not test the system. The law makes a failure to report punishable (UU 7/1981 Pasal 10).

Company regulation. An employer with at least 10 workers must make a company regulation (peraturan perusahaan), valid once the minister or an official appointed by the minister approves it, unless the company has a collective agreement (UU 13/2003 Pasal 108(1) and (2)). It is drawn up with the advice of the workers' representatives (Pasal 110), and the wage structure and scale go with the request (PP 36/2021 Pasal 22).

The order in practice. (1) The business registration (NIB; for a company, see the page on the PT PMA). (2) The WLKP report within 30 days of starting. (3) Registration of the business and each worker with BPJS Ketenagakerjaan, and with BPJS Kesehatan (the page on health insurance). (4) Written contracts in Indonesian, fixed-term ones registered within 3 working days. (5) The wage structure and scale, told to each worker. (6) The company regulation from 10 workers. (7) Every month: wages with a pay slip, BPJS contributions by the 15th, and the tax withholding (the page on tax deadlines). (8) Before each holiday: THR.

  1. Undang-Undang Nomor 7 Tahun 1981 tentang Wajib Lapor Ketenagakerjaan di Perusahaan, Pasal 2, 4, 6, 7, 8 dan 10 6 October 2026
  2. Peraturan Menteri Ketenagakerjaan Nomor 18 Tahun 2017 tentang Tata Cara Wajib Lapor Ketenagakerjaan di Perusahaan dalam Jaringan, Pasal 3, 5, 6 dan 7 6 October 2026
  3. Peraturan Menteri Ketenagakerjaan Nomor 4 Tahun 2019 tentang Perubahan atas Permenaker 18/2017, Pasal I angka 2 (Pasal 5A) 6 October 2026
  4. Kementerian Ketenagakerjaan, Panduan WLKP (tanpa tanggal, dibaca 6 Oktober 2026), Bagian A dan B 6 October 2026
  5. Undang-Undang Nomor 13 Tahun 2003 tentang Ketenagakerjaan, Pasal 108 dan 110 6 October 2026
  6. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 21 dan 22 6 October 2026
  7. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 14 6 October 2026
  8. BPJS Ketenagakerjaan, Manfaat Penerima Upah: dokumen pendaftaran, kanal pendaftaran, Call center 175 (dibaca 6 Oktober 2026) 6 October 2026

A household that employs a domestic worker

Domestic workers (PRT) have their own law since 30 April 2026: UU 2/2026 on the protection of household workers, in force from the day it was promulgated. A PRT is a person who works for an employer in household work for wages. The employer is a person or persons in a household who employ and pay (Pasal 1). Someone who helps with household work through custom, kinship, education or religion is not a PRT (Pasal 4(2)). A villa business that employs cleaners or gardeners is a company, not a household; whether a person who lets one villa is a household employer, the text does not say.

What the law sets. The worker is at least 18, has an electronic identity card (KTP-el) and a health certificate (Pasal 5). Recruitment is direct, on an agreement, or through a licensed placement company (P3RT) under a written placement contract (Pasal 6 to 8). The work is full-time or part-time (Pasal 9). Household work covers cooking, washing and ironing, cleaning, the yard or garden, childcare, care of sick or elderly people, driving, guarding the house and pets (Pasal 10). The relationship rests on an agreement or a work contract in Indonesian (Pasal 11); when a placement company is involved the contract is written in two copies, with stamp duty, and copies go to the placement company and to the head of the neighbourhood (RT/RW) (Pasal 11(3) to (5)).

Rights and duties. The worker may practise religion and has humane working time, rest, leave, wages and a holiday allowance (THR) as agreed, health insurance, work insurance as the rules say, safe work, healthy food and, for a full-time worker, decent lodging (Pasal 15). Health insurance contributions are paid by the state for those who qualify for aid, otherwise by the employer under the agreement and with the knowledge of the RT/RW; work insurance contributions are paid by the employer as agreed (Pasal 16). The worker gives one month's notice to leave (Pasal 17). The employer pays wages and THR as agreed, gives rest and leave and the chance to worship, and reports the worker to the head of the RT/RW (Pasal 19). The amounts of wage and THR are left to the agreement; a government regulation is to set details within one year (Pasal 15(3), 36(2)). We found no text that sets a minimum wage for a domestic worker.

Ending and disputes. A working relationship ends, among other things, by agreement, on breach of the agreement, on a crime of one against the other, on 7 days of absence without reason, on the death of either, at the end of the term or if the employer moves and the worker will not follow (Pasal 14). A dispute goes first to consultation within 7 days; then, between employer and worker, to mediation by the head of the RT/RW; or, with a placement company, to a mediator at the manpower office who must finish within 7 days; a mediator's decision on a wage dispute between employer and worker is final and binding (Pasal 31 and 32). Older rules on domestic workers stay in force only where they do not conflict with the new law (Pasal 36(1)). We did not retrieve the text of Permenaker 2/2015, so we do not describe it.

  1. Undang-Undang Nomor 2 Tahun 2026 tentang Pelindungan Pekerja Rumah Tangga, Pasal 1, 4 sampai 19, 31, 32, 36 dan 37 6 October 2026

Where an employer or a worker complains

The industrial dispute route (UU 2/2004). A dispute between employer and worker goes first to bipartite negotiation by consensus, to be finished within 30 working days of its start; if a side refuses to negotiate or there is no agreement, the negotiation has failed (Pasal 3). Either side then records the dispute at the manpower office of the regency or city, with proof of the bipartite attempt (Pasal 4(1)). The office offers conciliation or arbitration, and if the parties do not choose within 7 working days it passes the dispute to a mediator (Pasal 4(3) and (4)). A mediator sits at the manpower office of each regency and city (Pasal 8) and must finish within 30 working days (Pasal 15). If that fails, the dispute goes to the industrial relations court, a special court within the general courts (Pasal 55), which hears disputes on rights and on termination at first instance (Pasal 56). A suit without the record of mediation or conciliation is returned (Pasal 83). The court sits at the district court of each provincial capital for the whole province (Pasal 59(1)): for Bali, Denpasar; others are set by presidential decision (Pasal 59(2)), which we did not check.

Inspection and other routes. Labour inspectors of the ministry or of the provincial manpower office supervise the rules; a worker who cannot get information on his or her wage from the employer may ask them for help (PP 36/2021 Pasal 52; PP 35/2021 Pasal 60 and 62). For THR the ministry's circular set up complaint posts in each province and regency, linked at poskothr.kemnaker.go.id. The provincial office is the Dinas Ketenagakerjaan dan ESDM Provinsi Bali, Jl. Raya Puputan Niti Mandala, Renon, Denpasar, telephone (0361) 223964 (its page, read on 6 October 2026). For BPJS Ketenagakerjaan: Care Center 175. The Ombudsman is on the page on disputes and complaints.

  1. Undang-Undang Nomor 2 Tahun 2004 tentang Penyelesaian Perselisihan Hubungan Industrial, Pasal 3, 4, 8, 15, 55, 56, 59 dan 83 6 October 2026
  2. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 60 dan 62 6 October 2026
  3. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan, Pasal 52 6 October 2026
  4. Surat Edaran Menteri Ketenagakerjaan Nomor M/3/HK.04.00/III/2026 tentang Pelaksanaan Pemberian Tunjangan Hari Raya Keagamaan Tahun 2026 bagi Pekerja/Buruh di Perusahaan (2 Maret 2026) 6 October 2026
  5. Dinas Ketenagakerjaan dan ESDM Provinsi Bali, Kedudukan dan Alamat (dibaca 6 Oktober 2026) 6 October 2026
  6. BPJS Ketenagakerjaan, Manfaat Penerima Upah: dokumen pendaftaran, kanal pendaftaran, Call center 175 (dibaca 6 Oktober 2026) 6 October 2026

What follows if an employer does not comply

Administrative. The government may impose administrative sanctions for breach of the articles listed in UU 6/2023 Pasal 81 angka 70 (Pasal 190(1)), among them Pasal 61A (compensation), 92 (wage structure and scale) and 66(4). PP 35/2021 Pasal 61 and 62 set the stages, after an inspection: a written warning, a restriction of business activity, a temporary stop of part or all of the production tools, a freezing of the business. Late THR carries a fine of 5% (Permenaker 6/2016 Pasal 10 and 11).

Criminal. UU 6/2023 keeps criminal penalties. Pasal 185 (angka 66) covers, among others, paying less than the agreed wage (Pasal 88A(3)), paying below the minimum wage (Pasal 88E(2)), not paying severance (Pasal 156(1)), not giving time to worship or the maternity rest (Pasal 80 and 82): as written, prison of 1 to 4 years and/or a fine of Rp100,000,000 to Rp400,000,000. Pasal 187 covers, among others, overtime pay and rest and leave (Pasal 78(2), 79(1) to (3)); Pasal 188 covers, among others, the letter of appointment and the company regulation (Pasal 63(1), 108(1)).

UU 1/2026 (Penyesuaian Pidana, in force since 2 January 2026) removes special minimum penalties (Pasal I(1)) and restates these penalties in Lampiran I nomor 175: for Pasal 185 and 186, prison of up to 4 years and/or a fine of up to category IV (Rp200,000,000); for Pasal 187, a fine of up to category VIII (Rp50,000,000,000); for Pasal 188, a fine of up to category V (Rp500,000,000); the categories are in UU 1/2023 Pasal 79(1). The labour report has its own offence from 1981 (UU 7/1981 Pasal 10: detention of up to 3 months or a fine of up to Rp1,000,000); the list of UU 1/2026 does not name it, and how Pasal VIII applies to it we did not work out. A court, not this page, decides whether and how any penalty applies.

  1. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang, Pasal 81 angka 66 sampai 70 (Pasal 185, 186, 187, 188, 190) 6 October 2026
  2. Undang-Undang Nomor 1 Tahun 2026 tentang Penyesuaian Pidana, Pasal I ayat (1), Pasal VIII dan Lampiran I nomor 175 6 October 2026
  3. Undang-Undang Nomor 1 Tahun 2023 tentang Kitab Undang-Undang Hukum Pidana, Pasal 79, Pasal 79 6 October 2026
  4. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja, Pasal 61 dan 62 6 October 2026
  5. Undang-Undang Nomor 7 Tahun 1981 tentang Wajib Lapor Ketenagakerjaan di Perusahaan, Pasal 10 6 October 2026
  6. Peraturan Menteri Ketenagakerjaan Nomor 6 Tahun 2016 tentang Tunjangan Hari Raya Keagamaan bagi Pekerja/Buruh di Perusahaan, Pasal 10 dan 11 6 October 2026

What we could not confirm

The outcome of the House plenary of 6 October 2026 on the employment protection bill, whether and when it is promulgated, and what of the rules above it replaces. The official House page was not available to us.

Whether a villa or guesthouse falls under the sectoral minimum wage for star hotels; which regency's figure applies when the work is in one regency and the company's seat in another (PP 35/2021 Pasal 33(3) and UU 6/2023 Pasal 157(4) set the base of calculation, for overtime and for severance on piece-rate pay, and not which minimum wage applies in general, so we found no text that settles it).

Whether a PT PMA or a villa business can use the micro and small business exception, on which criteria, and the amounts of its two floors for Bali.

Whether the tourist high season is a season under PP 35/2021 Pasal 7, and whether the work of villa cleaners, gardeners or guards is permanent work.

How UU 13/2003 Pasal 62 (the wage to the end of the term) and PP 35/2021 Pasal 17 (compensation on the time worked) fit together when a fixed-term contract is ended early.

Whether the minimum wage binds after one year of service beyond the ban in Pasal 88E(2); no text we read sets a lower floor.

Which BPJS programmes bind a micro business (Perpres 109/2013 against PP 6/2025 on JHT), whether a PT PMA is a large business for that rule, how JKM is split after PP 6/2025, and the JP wage ceiling after December 2025.

Whether a temple ceremony or a banjar duty is a religious duty for time off and paid absence (UU 13/2003 Pasal 80, 93(2)(e)).

Whether another regulation has replaced PP 35/2021, the content of Permenaker 2/2015 and of the regulations still to come under UU 2/2026, and whether a minimum wage applies to a domestic worker.

Whether the WLKP system works as the ministry's undated guide says, and whether an individual who lets a villa and employs staff must report.

The rules on staff supplied by a manpower provider (Permenaker 7/2026), which we did not read beyond its title.

Questions to put to the manpower office, BPJS Ketenagakerjaan and a lawyer

To the manpower office of the regency or city: Which minimum wage applies to my business, and is a sectoral one meant for it? Is my business micro or small for the wage rules, and in which document? Is my labour report recorded and what is my WLKP number? Please give the answers in writing.

To BPJS Ketenagakerjaan (Care Center 175): Which programmes bind my business? Which JKK risk group and rate are mine? When did my registration and each worker's begin? Please confirm in writing.

To a notary or a lawyer who practises in labour law: Does my contract meet Pasal 57 (Indonesian language, signed)? Is a probation allowed here? Is the work I hire for permanent or may it be fixed-term? What happens to the workers if I sell the company or its shares?

For each worker keep: the signed contract in Indonesian, the registration proof of a fixed-term one, the pay slips, the BPJS card, the leave record, the THR payment and the note that the wage scale was told to the worker.