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Indonesia

Working Hours and Overtime Regulations

Understand the laws governing work hours and overtime in Indonesia

Standard working hours

Indonesian law mandates a maximum number of working hours per week, with some flexibility in how these hours are distributed across the workweek. This is outlined in Law Number 13 of 2003 concerning Manpower (Manpower Law).

The Manpower Law establishes a standard working week of 40 hours. This can be structured in two ways:

  • Eight hours per day for five working days (40 hours/week)
  • Seven hours per day for six working days (40 hours/week)

While the 40-hour workweek is the norm, there are a few exceptions:

  • Reduced Working Hours: Companies can implement reduced workweeks of less than 40 hours if the nature of the work allows for completion within that timeframe, and if flexible work arrangements or remote work options are offered.

It's important to note that any agreement to reduce working hours should be clearly documented within employment contracts or company regulations.

Overtime

In Indonesia, employers are permitted to request overtime work from employees, but this is governed by strict regulations. These regulations dictate the procedures for implementation and compensation for such additional hours.

To authorize overtime work, employers must adhere to certain requirements. Firstly, a written order must be issued by the employer, clearly outlining the need for overtime work. Secondly, employees must provide written consent to work overtime, indicating their agreement to the additional hours. This consent can be obtained electronically or through a physical document.

There are also limitations on the number of overtime hours an employee can work. The daily limit is a maximum of four hours of overtime per day. The weekly limit is a maximum of eighteen hours of overtime per week. It's important to note that these limitations exclude overtime work performed on rest days or public holidays.

Indonesian law mandates overtime compensation at a higher rate than regular wages. The specific rate depends on several factors, including whether the overtime is performed on a regular workday, weekly rest day, or public holiday, and the employee's hourly wage.

The exact calculation formula for overtime pay is outlined in the law. However, a general guideline is that the first hour is compensated at 150% of the regular hourly rate, and the second and third hour at 200% of the regular hourly rate. Overtime pay rates for rest days and public holidays are significantly higher, reaching triple or even quadruple the regular rate for extended overtime hours.

Rest periods and breaks

Indonesian labor law mandates rest periods and breaks for employees to ensure their well-being and productivity. These entitlements are outlined in Law No. 13 of 2003 concerning Manpower (Manpower Law).

Daily Rest Period

Employees are entitled to a minimum rest period after a continuous stretch of working hours:

  • At Least 30 Minutes: This break must be provided after every four consecutive hours of work.

This rest period is not considered working time and should not be included in the total daily working hours. Employees can use this time for relaxation, meals, or personal needs.

Weekly Rest Days

Indonesian law mandates a mandatory weekly rest day to provide workers with extended recovery time. The number of rest days depends on the workweek structure:

  • One Day of Rest: Following a six-day workweek (six working days)
  • Two Days of Rest: Following a five-day workweek (five working days)

This ensures employees have at least one or two full days off per week to rest and recharge.

Religious Observance Breaks

Indonesia recognizes the importance of religious observances for many workers. Employers are obligated to provide reasonable breaks for employees to perform religious practices:

  • Prayer Breaks for Muslims: This includes breaks for the five daily prayers observed by Muslims.

The specific duration of these breaks should be determined through discussions between the employer and employee, considering the nature of the work and operational needs.

Breaks for Female Workers with Nursing Infants

The Manpower Law acknowledges the specific needs of mothers with young children:

  • Nursing Breaks: Female employees who are breastfeeding are entitled to breaks to pump or nurse their babies.

The company, within reason and considering its financial capabilities, should provide a dedicated space for mothers to use during these breaks.

Important Note:

The specific details regarding the frequency and duration of nursing breaks may be further outlined in company regulations or collective bargaining agreements.

Night shift and weekend regulations

In Indonesia, specific regulations govern night shifts and weekend work to ensure fair treatment and worker well-being. These regulations are based on the relevant Indonesian labor laws.

Night shift work often falls outside regular working hours, potentially exceeding the daily or weekly limits. In such cases, employees are entitled to overtime pay at the mandated rates as outlined in Government Regulation No. 35 of 2021, Article 31 & 32. While not explicitly mandated by law, employers have a general duty to ensure a safe working environment for all employees, including those on night shifts. This may involve considerations like proper lighting and temperature control.

Indonesian law guarantees a minimum number of weekly rest days. However, it allows for some flexibility in how these rest days are allocated. Employers can require employees to work on weekends, provided they offer alternative rest days during the week or compensate them accordingly. If a designated rest day falls on a public holiday, the employer should provide a substitute rest day within the following month.

Weekend work regulations might be further elaborated upon in company regulations or collective bargaining agreements. Employees should consult these documents for specific details regarding weekend work expectations and compensation.

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