Annual leave and sick leave in Indonesia are much clearer than they may seem at first glance.
The main rules are set out in law and in the BPJS social security system, through which sick pay and some social benefits are processed. The issue is usually not a lack of rules, but the fact that they are not properly understood. As a result, disputes arise that could have been avoided.
There is a basic minimum that all employers must provide: paid annual leave, sick leave, and official public holidays. Employers cannot go below this level. Everything else — the number of days, additional conditions, and bonuses — is determined by the employment contract and the company’s internal policy.
Sick leave: how it works
The first 4 days of illness are paid by the employer, but only if a medical certificate is provided. Without one, the company has the right not to recognise the absence as sick leave. From the 5th day, payments are handled through BPJS and amount to 60% of the salary. This is the standard for officially employed staff. Sick leave is usually covered for up to 4 months, and if an employee is absent due to illness for up to 12 months, the employer may terminate the contract.
For example, with a salary of IDR 10,000,000, an employee will receive around IDR 7,333,333 for one month of illness: the company pays for the first few days, and the rest is paid through BPJS.
Annual leave: basic rules
The right to annual leave only arises after one full year of work. The minimum is 12 working days per year. If an employee has worked for less than a year, annual leave is not required by law unless the company provides for it. Payment is calculated in proportion to the salary: with a salary of IDR 8,000,000, 12 days of leave would amount to around IDR 3,200,000.
Important: the employer is not required to provide more than 12 days unless this is specifically stated in the contract or internal rules.
Maternity leave is provided separately: 3 months in total, 6 weeks before and 6 weeks after childbirth, and it is paid. However, “family leave” is not provided for by law, and whether it is available depends on the company.
Medical certificates and checks
A doctor’s certificate is required to register sick leave. The employer has the right to check its authenticity or refer the employee for an additional medical examination if there are doubts. Even documents from private clinics may be checked again, which is standard practice.
Public holidays
Indonesia has an average of 15–20 official days off per year, including national and religious holidays. If an employee does not work, the day is treated as a day off. If they do work, they are entitled to higher pay or compensation.
Key points to remember
- a minimum of 12 days of paid annual leave after one year of work
- sick leave through BPJS is paid from the 5th day at 60% of the salary
- a medical certificate is required
- public holidays are regulated by the official calendar
Most disputes arise not because the laws are complicated, but because the rules are applied incorrectly. That is why it is important to regularly check the contract against the current legal requirements.
If you want to make sure that your annual leave, sick leave, and payment system is set up correctly and without risk, it is better to review the documents and processes in advance. If needed, Legal Indonesia can help with this review and provide support.
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