Employer Tax Contributions

Tax Type	Rate (Employer Portion)	Base
PPh 21 (Income Tax)	Progressive (5%-35%)	Employee's Taxable Income
BPJS Kesehatan (Healthcare)	4%	Monthly Wages (capped at IDR 12 million)
BPJS Ketenagakerjaan (Employment) - Work Accident Security (JKK)	0.24%-1.74%	Monthly Salary
BPJS Ketenagakerjaan (Employment) - Old Age Security (JHT)	3.7%	Monthly Salary

Filing & Compliance

• Monthly PPh 21 payment deadline: 10th of the following month.
• Monthly PPh 21 tax return filing deadline: 20th of the following month.
• Monthly BPJS contributions payment deadline: 15th of the following month.
• Annual PPh 21 tax return filing deadline: March 31 of the following year.

Indonesian employee tax deductions encompass various factors like income, marital status, and dependents.

Income Tax (PPh 21)

Individual income tax, known as PPh 21, is a progressive tax, meaning higher earners pay higher percentages. As of 2025, the rates are as follows:

• Up to IDR 50 million: 5%
• IDR 50 million - IDR 250 million: 15%
• IDR 250 million - IDR 500 million: 25%
• Over IDR 500 million: 30%

Non-Taxable Income (PTKP)

This is the income threshold below which no tax is due. As of the available data from previous years (2024 and earlier), the PTKP is:

• Single Individual: IDR 54,000,000 annually
• Married Individual: IDR 58,500,000 annually (additional IDR 4,500,000 for the spouse)
• Each Dependent Child (up to 3): Additional IDR 4,500,000 annually per child

Please note that these figures are based on the most recent available data, and it is recommended to check with official Indonesian tax authorities for the most up-to-date PTKP amounts for 2025.

Deductions

Several deductions can reduce the taxable income:

• Occupational Expenses: 5% of gross employment income, capped at IDR 6,000,000 per year. This covers work-related expenses.
• Pension Contributions: Information on specific employee pension contributions for 2025 is unavailable. However, previous information suggests a possible deduction of 1% of gross income, capped at IDR 90,776 per month. It's essential to verify current regulations for accurate deduction amounts.

Social Security Contributions

Employers are responsible for contributing to several social security programs:

• Health Insurance (BPJS Kesehatan): The employer's contribution is around 4% of the employee's salary, up to a maximum limit (previously IDR 480,000, exact amount for 2025 unconfirmed).
• Work Accident Insurance (JKK): Rates vary based on risk level.
• Death Insurance (JKM): A small percentage of the employee's salary.
• Old-Age Pension (JHT): 2% of the employee's salary (employee's portion). The employer contributes an additional percentage. The total employer contributions are generally estimated at an additional 10.24% - 11.74%.

It's important to note that employer social security contributions form part of employee compensation but are not included in their take-home pay.

Tax Administration

• Taxpayer Identification Number (NPWP): All taxpayers, including employees, need an NPWP to file returns.
• Withholding: Employers withhold income tax monthly and remit it to the tax office.
• Annual Tax Return: Resident employees must file an annual tax return by March 31st of the following year.

Benefits in Kind (BIK)

Previously non-taxable, many benefits-in-kind are now included in taxable income. There are exceptions, including:

• Food and beverages provided to all employees
• Benefits for employees in remote areas
• Benefits for employee safety, health, and security (e.g., uniforms, safety equipment)
• Benefits funded by the government

Other Considerations

• Tax Treaties: Indonesia has tax treaties with various countries, impacting tax obligations for foreign employees.
• Non-Residents: Non-resident employees are taxed at a flat rate of 20% on Indonesian-sourced income. They are not required to register for NPWP or file an annual return, as the tax is finalized via withholding.

This information reflects the situation as of February 5, 2025, and may be subject to change with updates in regulations. Consult the Indonesian Directorate General of Taxes or a tax professional for the most up-to-date details.