MINIMUM AND AVERAGE SALARY IN INDONESIA

Indonesia is located in South-East Asia. It is the largest island state in the world. It is washed by the South China Sea and the Pacific Ocean in the north and east, and by the Indian Ocean in the south and west. It is a beautiful country with rich natural resources and many attractions, which attract tens of thousands of tourists – lovers of exotic recreation.

Salary in Indonesia

The population of Indonesia in 2020 is about 273.5 million people. Over 85% of local residents are Muslims. Unemployment is about 5%. The labor force is not less than 120 million. According to local laws, foreigners can face up to 5 years of imprisonment or a fine of 500 million Indonesian rupees for illegal employment in the country. Next, find out what salaries in Indonesia in 2020.

Minimum salary in Indonesia

According to the Indonesian Ministry of Labor, the official minimum wage in Indonesia in 2020 ranges from 1,704,608 (Yogyakarta) to 4,276,349 (Jakarta) rupees per month depending on the province, which is equivalent to 110 and 275 U.S. dollars respectively. Compared to last year, the minimum wage in Indonesia increased by 8.51%.

The level of the minimum wage in Indonesia is regulated by Government Resolution No. 78/2015, which provides for an annual increase in rates taking into account the rate of inflation and growth of gross domestic product. Based on these data, the governor of each province, in cooperation with the provincial wage councils, calculates the minimum wage.

Based on Ministry of Labor Resolution No. 7 of 2013, provinces can determine their own minimum wage rates (UMSP) in the so-called leading sectors and industries: public works, automotive, tourism, telecommunications, retail, food and beverages, pharmaceuticals and health care, finance and banking, textiles, chemical, energy and mining, electronics and technology.

Average salary in Indonesia

According to Indonesian and international recruitment agencies, the average salary in Indonesia in 2020 is 8-9 million rupees per month, which corresponds to $515-580. Employees in cities such as Jakarta, Surabaya, Bandung, Medan and Tangerang receive the most. The most highly paid professions in Indonesia are doctors and lawyers.

The highest salaries in Indonesia are in mining, information technology and communications, and finance and insurance. Salaries in the capital Jakarta are on average 15% higher than in the country as a whole. About $700 per month. Experienced professionals with a profession in demand earn more than $1,000.

In conclusion, we note that the income tax rate in Indonesia varies from 5 to 30%. At the minimum rate of 5%, annual income is taxed less than 50 million rupees per year, and at the maximum rate of 30%, income over 500 million rupees.

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