Hiring In Indonesia: Insurance Policies for Employers

Employers in Indonesia are required to provide health insurance for their employees, with a maximum coverage of 480,000 IDR per month. Employers are also required to contribute to various social security programs, including work accident insurance, old-age benefits, pension, and death benefits. The total employer payroll contributions range from 10.54% to 13.54% of the employee's salary.

Here is a more in-depth look into insurance details and insurance coverages:

Insurance details

Employer Payroll Contributions

0.24% - 1.74%

Work Accident


Old Age






Health Insurance (maximum of 480,000 IDR)


Life Insurance

0.10% - 1.60%

Accident Insurance

10.54% - 13.54%

Total Employment Cost

Employee Payroll Contributions


Old Age




Health Insurance (maximum of 120,000 IDR)


Total Employee Cost

Additionally, job applicants may seek comprehensive insurance coverage as an extra-statutory benefit. Supplemental insurance is common, providing more extensive health coverage for employees and their dependents. Skilled employees often expect insurance coverage for themselves and three to four dependents, in addition to government-mandated contributions.

Compensation insurance ensures employees receive medical and financial assistance in case of workplace injuries or accidents.

Liability insurance is essential for businesses in Indonesia, protecting them from liabilities arising from damages to others or property.

The Insurance Coverage

Sick Days: Employees receive paid sick leave with medical evidence, and prolonged sick leave is covered by the employer and insurance company based on a structured payment plan.

Maternity Leave: Expectant mothers enjoy 3 months of fully paid leave before the due date and 1.5 months after birth, with health insurance coverage, ensuring job security and satisfaction.

Parental Leave: Employers provide paid child leave insurance for significant life events like circumcision, baptism, marriage, or loss of a child, supporting employees' personal obligations and well-being.