Establish the ground first — everything follows from it

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

Then check the multiplier, then the components.

In this guide
  1. One: which ground?
  2. Two: which contract type?
  3. Three: the tables
  4. Four: the components list
  5. Five: the process
  6. Remember JKP is separate
  7. If the package looks wrong
  8. Keep evidence

Given how much the termination ground changes the outcome in Indonesia, the order in which you check things matters.

One: which ground?

Employer-initiated termination for efficiency or business reasons triggers the full multiplier table. Certain other causes reduce it to 0.5×.

Ask your employer to state the ground in writing, since the termination letter must contain it anyway.

Two: which contract type?

PKWTT gets Pesangon, Long Service Pay and Compensation of Rights. PKWT gets proportional Compensation Pay instead.

Three: the tables

Pesangon: 1× under one year, 2× at one to two years, scaling to 9× at eight or more years where it caps.

Long Service Pay: a separate table, 2× at three years up to 10× at twenty-four or more years.

Both apply to PKWTT employees where the ground allows.

Four: the components list

Confirm the breakdown includes:

  • Severance (Pesangon)
  • Long service pay
  • Compensation of rights
  • Unused leave
  • Any contractual benefits

Five: the process

  • Was bipartite negotiation attempted for at least 30 days?
  • Does the termination letter contain the required elements?
  • Are BPJS contributions current?

Remember JKP is separate

The unemployment benefit through BPJS Ketenagakerjaan does not reduce the employer's severance obligation. Claim both.

If the package looks wrong

The route is bipartite negotiation, then mediation at the local Manpower Office, then the Industrial Relations Court.

Courts have ordered reinstatement where process failed, so procedural objections are worth raising.

Keep evidence

Indonesia's system places strong emphasis on evidence. Your contract, payslips, the termination letter, records of negotiation and your BPJS statements are what a claim rests on.

Frequently asked questions

What should I establish first?
Which ground your employer invoked. Efficiency or business reasons trigger the full 1× multiplier while certain causes reduce it to 0.5×.
What should the breakdown include?
Severance, long service pay, compensation of rights, unused leave and any contractual benefits.
What process checks matter?
Whether bipartite negotiation was attempted for at least 30 days, whether the termination letter contains the required elements, and whether BPJS contributions are current.
Does the unemployment benefit reduce my severance?
No. JKP through BPJS Ketenagakerjaan is separate and does not reduce the employer’s obligation. Claim both.
What if the package looks wrong?
Bipartite negotiation, then mediation at the local Manpower Office, then the Industrial Relations Court. Courts have ordered reinstatement where process failed.

Sources

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