Indonesia has comprehensive labor laws governing working hours, overtime, and rest periods to protect employee rights and ensure fair working conditions. These regulations are crucial for businesses operating in Indonesia to understand and comply with to avoid legal issues and maintain positive employee relations. The Ministry of Manpower and Transmigration oversees and enforces these labor standards, which are primarily outlined in Law No. 13 of 2003 concerning Manpower and its implementing regulations.
Understanding these regulations is essential for businesses to ensure compliance and maintain a positive work environment.
Standard Working Hours
The standard working hours in Indonesia are defined as follows:
- 7 hours per day and 40 hours per week for a 6-day workweek
- 8 hours per day and 40 hours per week for a 5-day workweek
These limits apply to most employees, although certain sectors or positions may have specific exemptions as regulated by the Ministry of Manpower. Any work exceeding these standard hours is considered overtime and is subject to specific regulations and compensation requirements.
Overtime Regulations and Compensation
Overtime work in Indonesia is strictly regulated to protect employees from excessive working hours. Overtime can only be performed with the employee's written consent. The maximum permissible overtime is 4 hours per day and 18 hours per week.
Overtime Pay Rates:
| Overtime Hour | Overtime Pay Rate
