How is severance calculated in Indonesia?
Through three components — Pesangon, Long Service Pay and Compensation of Rights — with multipliers that depend on the reason for termination.
Why does the termination reason matter so much?
Because efficiency or business reasons trigger the full 1× multiplier table while certain causes reduce it to 0.5×. The same tenure can be worth nothing or 25+ months.
Do fixed-term employees get severance?
No. PKWT employees receive proportional Compensation Pay instead: months worked divided by 12, times one month’s salary, at each renewal and at expiry.
How long must negotiation last before termination?
Employers must show they attempted bipartite negotiation for at least 30 days.
What must a termination letter contain?
Final work date, compensation breakdown, summary of negotiation attempts, rights and obligations, return-of-property clause and payment deadlines. A letter missing these can be rejected by the court.
Does the unemployment benefit reduce my severance?
No. JKP is paid separately through BPJS Ketenagakerjaan and does not reduce the employer’s severance obligation.
What is THR?
The mandatory religious holiday allowance, typically one month’s salary, due at least seven days before the relevant holiday. Late payment carries a 5% penalty.
What are the BPJS employee contributions?
JHT at 2% and JP at 1%, plus the BPJS Kesehatan share. The employer adds JKK, JKM and its own JHT and JP shares.
Where do I take a dispute?
Bipartite negotiation first, then mediation through the local Manpower Office, then the Industrial Relations Court.
Is Saplic free to use?
Yes. Creating your profile, searching for jobs and applying costs nothing, now or later. There is no app to install either.