Payroll & Employer
Payroll Outsourcing Indonesia
Indonesian payroll, BPJS and PPh 21 filed on time every month
You remain the employer. PT People Profilers Services runs your monthly payroll in rupiah: BPJS remitted by the 15th, PPh 21 on the TER method through Coretax, THR, payslips and 1721-A1 slips. Teams in SG, MY, TH or VN consolidated into one report.
Est. 2025
PT People Profilers Services, Jakarta
Since 2002
group heritage across Southeast Asia
15th
BPJS remittance deadline we run to every month
5 currencies
IDR · SGD · MYR · THB · VND
How it works
1
Scope
Confirm headcount, work locations and the minimum wage for each, PKWT, PKWTT and KITAS categories, which pay components count as fixed allowances, and the BPJS and Coretax calendar.
2
Onboard
Migrate employee data, salary structures, PTKP status, NPWP records and leave balances. Verify BPJS registrations and JKK risk class. One parallel run, reconciled to the rupiah, before cutover.
3
Run
Monthly payroll in rupiah. BPJS on the correct wage bases and caps, PPh 21 at each employee's TER category, payslips, bank files, leave and overtime updated, variances flagged before disbursement.
4
Close
December PPh 21 true-up on the progressive rates, 1721-A1 slips for every employee, final tax for leavers, THR runs, and audit-ready archives. Year-end equivalents for SG, MY, TH and VN staff.
Payroll outsourcing in Indonesia, done by people who file in Indonesia
Indonesian payroll has more moving parts than most Southeast Asian markets: two BPJS schemes with different wage bases and caps, a JKK rate that depends on your industry risk class, monthly PPh 21 on effective rates with a December reconciliation, minimum wages that vary by regency and change every January, THR that must land a week before a holiday that moves each year, and an employee population that often mixes PKWT and PKWTT with different end-of-contract rules. People Profilers has run payroll across Southeast Asia since 2002 and, in Indonesia, does it through PT People Profilers Services in Jakarta. The team that processes your run is the team that files your Coretax returns, which is why the numbers reconcile. If you are comparing this against keeping staff on someone else’s payroll, our guide to how payroll parking works in Indonesia and what it costs. Before you budget a role, it is worth knowing what an Indonesian hire actually costs once BPJS and THR are added.
What is included in our Indonesian payroll service
Three layers: the monthly administration that produces accurate payslips on time, the statutory contributions and tax remitted at official rates, and the year-end filings that close the tax year cleanly. Exact fees are confirmed in the engagement letter before the first run.
Monthly payroll administration
- ✓Gross-to-net calculation including overtime at the statutory 1/173 hourly basis
- ✓Payslip generation, distribution and archiving, plus bank bulk-payment files
- ✓Variance reports flagged before every run
- ✓Multi-currency support where you also have SG, MY, TH or VN staff
Statutory contributions and tax
- ✓BPJS Kesehatan registration, calculation and remittance
- ✓BPJS Ketenagakerjaan (JHT, JKK, JKM, JP) registration, calculation and remittance
- ✓Monthly PPh 21 withholding on the TER method, payment and Coretax reporting
- ✓Foreign employees on KITAS included, with PPh 21 or PPh 26 applied by residency status
- ✓Calculated at official rates and caps, no markup, no margin
Year-end and situational
- ✓December PPh 21 reconciliation and 1721-A1 slips
- ✓THR calculation and payment run
- ✓Final settlement for leavers, including PKWT end-of-contract compensation and PKWTT severance under the current termination rules
- ✓Optional add-ons: leave portal, expense management
Engagements have a twelve-month minimum term with one month's fees held as a refundable security deposit. Every fee is set out in the engagement letter before the first run. You remain the legal employer of your team.
When payroll outsourcing makes sense in Indonesia
Outsourcing payroll is rarely about cost. It is about taking a high-risk, low-strategic-value process off the in-house plate. Three patterns we see most often.
A lean HR or finance team
Small and mid-sized employers where one person runs payroll alongside everything else, and where Coretax filings, BPJS reconciliations and THR would stop if that person resigned.
A foreign parent with a new PT PMA
The entity exists, the first hires are in, and the regional finance team does not want to learn TER categories, PTKP status codes and BPJS caps from scratch. We run it locally and report in the format your group already uses.
A multi-country Southeast Asian workforce
Teams in Indonesia and two or three other markets that need one consolidated report, local-currency disbursement and correct statutory handling in each, without a separate payroll function per country.
Under payroll outsourcing you remain the legal employer. If you do not yet have an Indonesian entity and need us to employ the staff, see Employer of Record.
PAYROLL OUTSOURCING
Indonesian payroll run to Indonesian deadlines
BPJS calculated and remitted by the 15th · PPh 21 on the TER method through Coretax · THR, payslips and 1721-A1 slips every year
Industries and pay structures we handle in Indonesia
Your payroll is administered by people who know your sector's pay structures, allowances and statutory nuances, from JKK risk classes to regency-level minimum wages.
Aerospace & Aviation
Aircraft maintenance technicians, avionics specialists, ground handling leadership and aviation supply chain roles around Soekarno-Hatta and the Bandung aerospace cluster.
Automotive
Production and quality engineers, supplier development, sales and aftersales management across the Bekasi and Karawang assembly and component base.
Banking & Financial Services
Relationship managers, credit and risk analysts, compliance and AML officers and operations specialists across OJK-supervised banks, multifinance and insurers.
Biotechnology & Pharmaceutical
Regulatory affairs, QA and validation, medical representatives and market access roles for manufacturers, importers and distributors.
Chemical
Process and production engineers, plant supervisors, HSE officers and technical sales across the Cilegon and East Java petrochemical estates.
Construction & Civil Engineering
Project and site managers, civil, structural and M&E engineers, quantity surveyors and safety officers on Jakarta and regional infrastructure.
FMCG & Retail
Brand and trade marketing managers, key account and general trade specialists, and field sales leadership across Java, Sumatra and Sulawesi.
Healthcare
Clinical operations, nursing leadership, medical representatives and regulatory specialists for private hospital groups and device companies.
IT & Telecommunication
Software engineers, product managers, data and infrastructure specialists across Jakarta and Bandung technology employers and the telco operators.
Logistics & Transportation
Freight forwarding, customs and import-export specialists, warehouse and distribution managers around Tanjung Priok, Tanjung Perak and the industrial corridors.
Marine & Offshore Engineering
Marine and subsea engineers, yard and vessel operations, project managers and HSE specialists across shipbuilding and offshore support.
Media & Publishing
Account management, content and performance marketing, creative and production roles across agencies, platforms and publishers.
Oil & Gas
Process, drilling and project engineers, HSE coordinators and commercial analysts for operators, service companies and refineries.
Real Estate & Property
Development and project managers, leasing and property managers, facilities leads and investment roles for Indonesian developers and funds.
Semiconductor
Process, test and packaging engineers, equipment and production specialists across the assembly and electronics plants, including Batam.
Frequently asked questions
Who is the legal employer when I outsource payroll to People Profilers?
You are. Your Indonesian entity remains the employer of record and the taxpayer. PT People Profilers Services acts as your payroll administrator: we calculate, prepare payslips, generate bank files, remit BPJS, and prepare and file PPh 21 through Coretax on your behalf, using your entity's registrations.
This is the defining difference from our Employer of Record service, where PT People Profilers Services becomes the employer.
How does PPh 21 work in Indonesia, and what do you file?
Since January 2024, monthly PPh 21 is withheld using the TER method: an effective rate looked up from the employee's gross monthly income and PTKP category (single, married, number of dependants).
In December the year is reconciled using the progressive annual income tax rates so the annual figure is correct. Employees without an NPWP attract a 20% surcharge.
We calculate the withholding, prepare the monthly return and bukti potong through Coretax, and issue each employee's 1721-A1 slip at year end for their personal filing.
Which BPJS contributions do you handle, and at what rates?
Both schemes. BPJS Kesehatan is 4% employer and 1% employee on a capped wage base. BPJS Ketenagakerjaan for private-sector employees comprises JHT (3.7% employer, 2% employee), JKK (0.24% to 1.74% employer, set by your industry's risk class), JKM (0.3% employer) and JP (2% employer, 1% employee, on a capped base that is revised each year).
Contributions are due by the 15th of the following month. We confirm the rates, caps and your JKK class at onboarding and update them when regulation changes.
Can you process payroll for foreign employees on KITAS?
Yes. Foreign employees are included in the same run. We apply PPh 21 for tax residents and PPh 26 for non-residents using the 183-day test, and enrol foreign employees in BPJS once they pass six months in Indonesia as the rules require.
We track work permit validity so payroll and statutory reporting stay aligned with Kemnaker requirements. On departure we prepare the final withholding and related filings.
Under payroll outsourcing you are the employer of your foreign employees and we administer their payroll on your behalf, which is a meaningful operational difference from EOR.
How do you handle THR and minimum wage changes?
THR is calculated at one month's wage plus fixed allowances for employees with twelve months' service, pro rata for shorter service, and paid at least seven days before each employee's religious holiday. We schedule the run against the holiday calendar each year.
New UMP, UMK and UMS rates take effect every January. We re-check every employee against the floor for their work location before the first run of the year.
How does the engagement and pricing work?
An engagement letter before the first run sets out scope (headcount, locations, employment categories, cycles), the monthly administration fee, any one-time setup or add-on modules, and confirms that statutory contributions pass through at official rates with no markup.
Engagements have a twelve-month minimum term, reflecting the setup and parallel-run investment on both sides, with one month's fees held as a refundable security deposit.
How do you protect payroll data?
Employee master data, salary information, NPWP and bank details are held in access-controlled systems with audit logging, processed under documented procedures with segregation of duties between input, review and disbursement.
We comply with Indonesia's Personal Data Protection Law and the equivalent legislation in our other markets. Retention periods and any cross-border transfer for consolidated reporting are documented in the engagement letter.
What does the transition from in-house payroll look like?
Most clients run their first live payroll with us within four to six weeks: employee master data and PTKP status migration, salary structure validation, BPJS registration and JKK class verification, leave balance import, one parallel run reconciled to the rupiah, then cutover.
The parallel run is the most important step. It surfaces data inconsistencies before they become live payslip errors.
If you later bring payroll back in-house, the same process runs in reverse with documented handover and statutory continuity.
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