Payroll Service in Indonesia

Payroll Service in Indonesia is very common, therefore the rules and regulations regarding payroll in Indonesia are quite complex and intricate. For most foreign-owned companies entering the Indonesian market, these regulations can be difficult to keep up with. Meanwhile, for emerging startups, making profit often becomes the priority so administrative matters such as payroll are overlooked. These two problems can be solved by using an external payroll service. Here at Double M, we can offer you an extensive payroll service with high attention to details.

Legal Basis of Payroll Service in Indonesia

According to the Job Creation Law No. 11 of 2020 Chapter 81 No. 24, every worker has a right to receive adequate pay on the basis of humanity. This law also regulates the remuneration policies which consist of: minimum salary, structure and scale of salary, overtime work salary, leave salary, method of salary payment, other services counted as salary, other obligations or rights paid by salary.

The law regarding salary payment is strictly regulated and enforced in order to secure the welfare of the employee. Making sure all employees are fairly and timely compensated for the work they do is an essential aspect of a company’s integrity.

Procedures of Payroll Service in Indonesia

For companies with large numbers of employees, a well-structured payroll method is a necessity to ensure the process is carried out properly. At Double M, we offer systematic and comprehensive payroll service in Indonesia, such as:

Gathering an extensive database of employee personal information (Name, Department, Bank Account, NPWP, BPJS). These information will then be maintained and updated regularly in order to help payroll processes in the future.
SPT is a document that states all the calculation and payment of taxes for an employee. As part of our service, we calculate income tax, create and process reporting of E-SPT, create reports on tax owed and tax paid, and provide SPT documents for employees that are resigning. Finally, we can also update the tax profile, PTKP, and SPT from previous companies of the employee.
BPJS Health is a social security agency owned and operated by the Indonesian government whose aim is to provide healthcare to its citizens. In relation to work in the formal sector, the Indonesian government created a specific work insurance program named BPJS Kesehatan or BPJS Manpower. This covers several types of insurance such as work accident insurance, pension insurance, etc.
As part of our payroll service, we register, modify, and activate BPJS Health and BPJS Manpower statuses of the employees. Secondly, we also report about the specific details regarding the BPJS fee monthly deduction from the salary. Thirdly, we report the entire process to BPJS staff.
In this area, we calculate and carry out the Salary Disbursement process, which includes the payment of the salary to the employees through methods approved by the client and providing the salary slip. We also calculate BPJS and Tax which are deducted from the monthly salary. Furthermore, we also calculate allowances, leave allowances, overtime fee, pro-rate, bonuses, incentives, and severance packages should it be necessary

How can Double M Help?

We are committed to assisting our clients carry out their payroll system efficiently. Should you have any inquiries regarding payroll service in Indonesia, please contact us.

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