Indonesia Severance Pay Calculator: Pesangon and UPMK

Estimate the severance and long-service pay owed when employment ends, from the wage and the years of service.

The two tables of Article 40

Severance pay (uang pesangon) depends on completed years of service: one month of wages for under one year, one more month for each completed year, up to nine months from eight years of service. Long-service pay (uang penghargaan masa kerja, UPMK) starts at three years: two months of wages for three to under six years, three months for six to under nine, four for nine to under twelve, five for twelve to under fifteen, six for fifteen to under eighteen, seven for eighteen to under twenty-one, eight for twenty-one to under twenty-four, and ten months from twenty-four years.

Example

A wage of IDR 8,000,000 and six years of service give 7 months of severance pay (IDR 56,000,000) and 3 months of long-service pay (IDR 24,000,000): IDR 80,000,000 before other entitlements and before the multiplier for the termination reason.

The reason for termination matters

PP 35/2021 sets a different multiplier for the severance component depending on why employment ends (Articles 43 to 59), and some reasons, such as a voluntary resignation, give no severance pay at all but other payments instead. Because the details differ per article, the calculator asks for the multiplier. On top come the compensation of rights (uang penggantian hak), such as unused annual leave and the cost of returning home. Disputes go first to bipartite negotiation, then to mediation at the local manpower office, and finally to the industrial relations court.

Frequently asked questions