Wage Hosting in Indonesia. What is It?

Wage Hosting in Indonesia – Establishing a company in Indonesia is a process that could take a substantial amount of time. There are many instances where companies are still being set-up, but they need their operations to begin immediately. If that is the case, you can use Double M as some sort of broker or intermediary, which hires employees on your behalf and pays their salaries under Double M’s company payroll. This type of service is called wage hosting in Indonesia. 

What is Wage Hosting?

By definition, wage hosting is a temporary service which allows Double M to hire employees on behalf of foreign companies wishing to start a business in Indonesia. In most cases, the recruitment process in a wage hosting process is merely a formality. This is because the foreign companies usually have their own candidates. As such, common recruitment procedures like job interviews are no longer necessary. 

What is the Scope of Service?

Since interviews are not necessary, services of wage hosting in Indonesia focus on the administrative side of things such as employment contract drafting, salaries, and potential benefits for the employee. In Indonesia, one unique employment benefit that stands out is BPJS, which is a health insurance for all employees working in Indonesia. In more details, here are the services of wage hosting in Indonesia:

  1. General HR support, such as:
  • Drafting employment contracts in accordance with the Indonesian labor regulation
  • Socialization regarding the latest updates of employment regulation
  • HR consultation via email or phone
  • Contract or employment termination
  1. Calculation and processing of  monthly salary
  2. Calculation and deduction of BPJS
  3. Calculation and deduction of income tax
  4. Registration of BPJS Manpower and BPJS Health
  5. Monthly contribution management of BPJS Manpower and BPJS Health
  6. Creation and submission of employee’s tax report
Related Article:  List of Payroll Software in Indonesia

What are the Advantages of Wage Hosting?

Using wage hosting in Indonesia is quite a popular choice, since it could potentially bring several advantages such as:

  1. Legal Protection

The first advantage of wage hosting is legal protection. You as the client will not be exposed to the Indonesian legal system nor have the risk of going into legal troubles because Double M conducts the recruitment and salary payment on your behalf. 

  1. Minimal Cost

The process of searching and recruiting employees could cost you a lot of fortune, especially when it’s in a foreign country. By using wage hosting services, you will only need to pay one invoice and let Double M complete all the work. This method will certainly save you a lot of money. 

  1. Effectivity

Employee recruitment process might take the majority of your resources and energy if you conduct it on your own. By using wage hosting services, you can delegate it to others and allocate your effective time for other priorities.

How can Double M help?

Using wage hosting services could help ease your recruitment process in Indonesia. With Double M’s help, you will be able to conduct the process efficiently.