icon fb blueicon linkedin blueicon call blueicon youtube blue

Working hours in Indonesia: what foreign business needs to know!

Trường Lăng
Trường Lăng, founder and 15-year director of Viettonkin, guides the company's strategic direction, makes top-level decisions, and represents the firm in key business negotiations. With over 20 years of consulting experience in Belgium and Southeast Asia, including 15 years specializing in FDI projects, he has established himself as a top expert who helps clients across industries expand their businesses. His deep knowledge of risk management and business operations, combined with his proven track record of successful consultation projects, makes him a valuable partner for investors seeking quality consulting services.

Important Labor Laws in Indonesia: What you need to know!

Knowing labor laws in Indonesia is important before establishing a business in Indonesia. A comprehensive understanding of existing labor laws is important as any non-compliance will lead to problems with authorities. In this article, we will give you the guidelines for the crucial regulations regarding labor law for the employer.

What is the working hour in Indonesia?

Regarding work hours, all employees must only spend 40 hours working in a week. For six workdays, it is divided into seven hours per day. For five workdays, it is eight hours per day.

What are the regulations for overtime work?

Employers are obliged to pay overtime fees if the employees are required to work over the time limit specified by labor laws. The overtime can only be performed if there’s an agreement between both parties; employer and employee. The maximum time of overtime work is three hours a day, or 14 hours a week, not including the overtime during public holidays or weekends.
The calculations for overtime fee are as follows:

Hours in a day Workweek Weekend & Public Holidays
5-Days Workweek 6-Days Workweek
1st hour 1,5x - -
1st 5-hour - - 2x
1st 8-hour - 2x -
Each hour later 2x 3x 3x
7th & 8th hour - - 4x
10th & 11th hour - 4x -

How to determine the employee’s salary?

If the salary component consists of a basic salary and fixed allowance, the amount of minimal basic salary is 75% of the total basic salary and fixed allowance. Each provincial-level government annually issues a minimum wage that is applicable in the province. This is one of the most important things that you have to know. Minimum wage refers to the lowest monthly wage consisting of basic wage including fixed allowance. The employer is prohibited to pay lower wages than the Provincial Minimum Wage. Jakarta has a high minimum wage compared to other smaller cities.

Do you want to know more or discuss further? Contact us!

Unlock Vietnam's Market: Download Our Comprehensive FDI eBook Now!

Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.


Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!

Download EBOOK
Unlock Vietnam's Market: Download Our Comprehensive FDI eBook Now!

Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.


Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!

Download E-Book

About Us

Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.
Contact
Email: 
info@viettonkin.com.vn
Phone Number: 
+84 977093166
Support
FAQ
Subscribe to our insights to look at the critical issue that your business is facing and stay ahead of the competition in a rapidly changing world.
Subscription Form
img linkedin
Viettonkin Consulting Logo © 2025 - Viettonkin JSC