Indonesia Overtime Pay Calculator
Work out overtime pay from the monthly wage, the number of overtime hours and the kind of day, following Government Regulation 35/2021.
How overtime is paid
The hourly wage for overtime is 1/173 of the monthly wage. On a normal working day the first overtime hour is paid at 1.5 times the hourly wage and every further hour at 2 times. On a rest day or a public holiday the rates are higher: in a five-day working week the first 8 hours are paid at 2 times, the ninth at 3 times and the tenth and eleventh at 4 times; in a six-day week the steps come one hour earlier (7 hours at 2 times, the eighth at 3 times, then 4 times).
Examples with a wage of IDR 10,000,000
The hourly wage is IDR 57,803. Three hours on a working day pay IDR 317,919: one hour at 1.5 times and two at 2 times. Ten hours on a public holiday in a five-day week pay IDR 1,329,480.
Which wage counts
The monthly wage for overtime is the basic salary plus fixed allowances. When the wage also includes variable allowances and the basic salary plus fixed allowances come to less than 75% of the total, overtime is calculated on 75% of the total wage.
Limits and conditions
Overtime may not exceed 4 hours a day and 18 hours a week; overtime on weekly rest days and public holidays does not count towards these limits. It needs an order from the employer and the employee's agreement, and for overtime of 4 hours or more the employer must provide food and drink of at least 1,400 kilocalories, which may not be replaced by money. Employees in certain positions with planning or managing responsibilities, whose working time cannot be fixed, are not entitled to overtime pay if they receive a higher wage, as set out in the employment agreement or company regulation. For a holiday that falls on the shortest working day of a six-day week the rate steps differ again; check the regulation for that case.
Frequently asked questions
Is overtime on a public holiday paid at double rate?
At least double: the first 8 hours (7 in a six-day week) are paid at 2 times the hourly wage, and the hours after that at 3 and 4 times.
Can an employer pay a flat overtime allowance instead?
The formula in the regulation is the minimum. A flat allowance that pays less than the formula gives for the hours actually worked falls short of it.
Is overtime pay taxed?
Yes. Overtime is part of the month's gross income for PPh 21; the salary calculator shows how the withholding works.