Indonesia EOR Cost Calculator 2026
Calculate complete EOR costs including payroll, BPJS contributions, income tax, and EOR management fee
Calculate EOR Cost
Enter employee details to see the total Employer of Record cost for Indonesia
Calculator Features
About EOR Fee Structure
How it Works
The EOR (Employer of Record) fee is calculated as 10% of total payroll cost(gross salary + all employer contributions). This covers payroll processing, tax compliance, employment contracts, and HR support.
$250 Monthly Cap
The EOR fee is capped at $250 USD per month, regardless of salary amount. This means for high-salary employees, the effective EOR fee percentage decreases, making it more cost-effective.
Understanding Indonesia Employment Costs
BPJS Coverage (Mandatory)
BPJS Kesehatan (Health)
Employee: 1% | Employer: 4%
Capped at IDR 12M base salary
BPJS JHT (Old Age Savings)
Employee: 2% | Employer: 3.7%
No salary cap
BPJS Pensiun (Pension)
Employee: 1% | Employer: 2%
Capped at IDR 10.5M base salary
BPJS JKK & JKM
Employer only: 0.24% + 0.3%
Work accident & death insurance
Income Tax (PPh 21)
Indonesia uses two methods for calculating employee income tax:
- •TER Method (Monthly): Simplified withholding tax rates based on income brackets
- •Progressive Tax (Annual): 5% to 35% based on taxable income after PTKP deduction
Frequently Asked Questions
What is an EOR (Employer of Record) in Indonesia?
An Employer of Record is a third-party organization that legally employs workers on behalf of your company in Indonesia. The EOR handles payroll, tax compliance, employment contracts, and mandatory benefits like BPJS, allowing you to hire without setting up a local entity.
How much does it cost to hire through an EOR in Indonesia?
EOR costs include the employee's gross salary, mandatory employer contributions (BPJS, social security, pension), and an EOR management fee. Our calculator uses a 10% EOR fee capped at $250 USD/month. Enter a salary above to see the full breakdown.
What are the benefits of using an EOR?
An EOR lets you hire employees in foreign countries without establishing a local entity, saving significant setup time and costs. The EOR ensures full legal compliance with local labor laws, tax regulations, and mandatory benefits.
What mandatory contributions does an employer pay in Indonesia?
Employers in Indonesia must pay BPJS Kesehatan (health, 4%), BPJS JHT (old age savings, 3.7%), BPJS Pensiun (pension, 2%), BPJS JKK (work accident, 0.24%), and BPJS JKM (death insurance, 0.3%). These are included in the total employer cost.