As the shareholder or the owner of the company, sometimes we only focus how to develop our business and often forgot about the right of our employee. The most common misthought was “As long as I paid their wage, then we have no problem”. While it’s true that wage is one of the rights of the employee, but it’s not absolutely true. There are more rights that entitled to the employee as they are working in our company. The rights of the employee is being regulated by the Indonesian Labor Law No.13 2013. There are few basic employee right that we are going to summarize.
Employee Right
Employee in Indonesia works for 40 hours/week or 8 hours/day. If someone is working more than 8 hours, then the company should pay the overtime. The rate for the overtime itself is regulated, which is 1/173 monthly salary and capped at 3 hours/day. In addition, break need to be given to them every four hours (Lunch Break)
Compensation
In Indonesia, minimum wage is determined by the location of the company, i.e the minimum wage in Jakarta is higher than Bali. This minimum wage is only applicable to the employee that work for less than a year, anything more than that must be negotiated between two party and agree upon certain agreement.
Also Read: A Startup’s Guide to Payroll Outsourcing in Indonesia
Leave and Sick
There are 14 days of public holidays in Indonesia. On top of this 14 days of public holiday, every employee is entitled to atleast 12 days of personal days off. During this period of 12 days, the company need to pay 100% of the salary. In addition, workers are permitted to take personal leave for baptisms, weddings, and deaths.
In case of sick, employees are entitled to be paid sick leave in the case of illness or injury that is evidenced by a medical certificate or statement. Employees are also entitled to long-term paid medical leave provided that such leave is recommended in writing by a doctor and lasts for a period greater than one year.
Maternity
According to the HR regulations in Indonesia, a mother who gives birth is entitled to 1.5 months off before the child is born, and 1.5 months off after the child born (3 months in total). While no-time off consideration is given to the father.
As the owner of the company, we need to make sure that every employee get their rights while working with our company. Handling the absence, leave, and minimum wage might be a tedious work. Using Gadjian HR software, we can do these works easily. Our platform automated a lot of HR work such as calculating compensation for leave, wage, overtime, and many more. With Gadjian, all the HRD work is easy!
