Leave Policy in Indonesia

Indonesia's leave framework is set by Manpower Law No. 13/2003 and updated by legislation passed in 2024. Employers hiring in Indonesia must apply these rules correctly from day one.

Key takeaways

• Annual leave: 12 days per year after one full year of service; unused leave lapses within 6 months of the entitlement date.
• Menstrual leave: 2 days paid for female employees on the first and second day of menstruation if unwell, under Art. 81.
• Maternity leave: 3 months standard, extendable to 6 months with a medical certificate under the 2024 law.
• Paternity leave: 2 days statutory, extendable to up to 5 days under the 2024 law.
• Sick leave: Paid in tiers from 100% down to 25% depending on duration, fully employer-funded.

Gloroots supports entity-free employment in Indonesia, tracking leave entitlements, enforcing carry-over rules, and keeping payroll aligned with statutory obligations.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Indonesia

Indonesia's leave framework rests on two primary statutes: Manpower Law No. 13/2003 (UU Ketenagakerjaan) and Job Creation Law No. 11/2020 (Omnibus Law), which amended several provisions of the original act.

Kepmenakertrans KEP-51/MEN/IV/2004 governs long-service leave entitlements. Legislation enacted in 2024 extended maternity and paternity leave rights beyond the earlier minimums.

These statutes set the statutory floor. Employment contracts and company regulations (Peraturan Perusahaan) may provide benefits above that floor. Fixed-term contracts (PKWT) must be written in Bahasa Indonesia. Employers managing Indonesian workers remotely can review how does EOR work to understand entity-free employment options.

Indonesian law covers the following leave categories:

• Annual leave
• Sick leave
• Maternity leave
• Paternity leave
• Menstrual leave
• Miscarriage leave
• Bereavement leave
• Civic duty leave
• Religious obligation leave
• Union duty leave
• Long-service leave

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Annual Leave (Earned / Privilege Leave)

Under Article 79 of Manpower Law No. 13/2003, employees earn the right to 12 days of paid annual leave after completing 12 consecutive months of employment.

The leave right arises on the anniversary date. Unused leave lapses if not taken within six months of that date. Carry-over is permitted only within that six-month window, after which the entitlement expires.

On termination, any untaken annual leave that has not yet lapsed is compensable in cash under Article 156(4). Employers must track leave balances carefully to calculate this liability accurately.

Part-time employees working fewer than seven hours per day or 35 hours per week are not guaranteed the statutory 12-day entitlement. Employees must request leave in advance in accordance with company regulations.

Long-service leave applies as follows:

• Employees receive one month of leave in year seven and one month in year eight of continuous service.
• This cycle repeats every six years thereafter.
• The obligation is mandatory only for companies registered before the MOM Decree 51/2014 cutoff.
• Company regulations or collective labor agreements further define the mechanics of this entitlement.

For a regional comparison, see the leave policy in Philippines, where annual leave rules differ in accrual structure and eligibility conditions.

Public Holidays

Indonesia's public holiday dates are set each year by Joint Ministerial Decree (Keputusan Bersama Menteri). The government publishes the official list before each calendar year begins.

When a public holiday falls on a weekend, there is no automatic weekday substitution. The government decides each year whether to transfer the observance to a working day.

The government also declares Cuti Bersama (collective leave or bridge holidays). These are bridge days that sit between a public holiday and a weekend. For civil servants, Cuti Bersama days are mandatory. For private-sector employees, they are voluntary, though many employers follow the government schedule. Cuti Bersama days are deducted from an employee's annual leave quota.

Employees required to work on a public holiday must receive overtime pay under Manpower Law No. 13/2003 and the Job Creation Law 2020. The rate is 1/173 of monthly salary per hour, with double pay applying after the first hour.

Dates and Cuti Bersama designations change annually. Review the official Joint Ministerial Decree each year to confirm the current schedule before finalizing workforce plans.

Sick Leave

Article 93 of Manpower Law No. 13/2003 is the statutory basis for sick leave in Indonesia. Employers, not a state insurance fund, are responsible for paying sick leave wages.

Entitlement is tiered by duration. Employees receive full pay for the first four months of illness, with the rate stepping down over subsequent periods. After 12 consecutive months at the 25% rate, the employer may terminate the employment relationship with severance pay under Article 172 of the same law.

Menstrual leave is a separate statutory entitlement under Article 81 of Manpower Law No. 13/2003. It is not part of the sick leave framework and is covered under Other Leave Types.

Casual Leave

Indonesian law does not define a separate casual leave category by that name. Article 93(4) of Manpower Law No. 13/2003 provides the closest equivalent: paid leave for specific personal and family events.

Qualifying events and their durations are fixed by statute:

• 3 days for the employee's own wedding
• 2 days for a child's circumcision, christening, or wedding
• 2 days for the death of a child
• 1 day for the death of a household family member
• 2 days for the death of a spouse, parent, in-law, or child

Civic duty leave under Art. 93(2)(d) and religious obligation leave under Art. 93(2)(e) are also paid and do not reduce annual leave balances. Event-based leave does not carry forward; it applies only when the qualifying event occurs.

Maternity Leave

Article 82 of Manpower Law No. 13/2003 entitles employees to three months of paid maternity leave at 100% of salary, split as 1.5 months before and 1.5 months after delivery.

A 2024 law extended this entitlement when a doctor certifies the newborn has health complications. In that case, leave may extend to six months total. Months one through four are paid at 100% of salary; months five and six are paid at 75%. Employers cannot deduct more than 50% of wages during the extended period.

Employees who experience a miscarriage are entitled to 1.5 months of paid leave under Art. 82. An obstetrician or midwife certificate can support an extension of that period.

Article 153 prohibits dismissal of an employee on the basis of pregnancy or maternity leave. Employers must also provide the opportunity and facilities for mothers to breastfeed during working hours, including a lactation room and daycare access, under Art. 83 and the 2024 law.

Indonesian law does not provide statutory maternity leave for adoption or surrogacy. Employers must address those situations through company policy. For a regional comparison, see the leave policy in Vietnam, where maternity provisions differ notably.

Paternity Leave

New fathers in Indonesia are entitled to two days of paid leave under Article 93(4)(b) and 93(4)(e) of Manpower Law No. 13/2003. This entitlement applies to both the birth of a child and a miscarriage.

Indonesia's 2024 labor law extension increased paternity leave to up to five days: two statutory days plus three additional days. Male civil servants may extend this further with a doctor's certificate under the 2024 law.

For private-sector employees, the three additional days depend on implementation of the 2024 law by the relevant employer or sector. HR teams should monitor regulatory guidance and update employment contracts accordingly.

Adoption and Surrogacy Leave

Manpower Law No. 13/2003 contains no statutory provision for adoption leave or surrogacy leave. The 2024 maternity law extension also does not address either situation.

Employers must cover adoption and surrogacy leave through employment contracts, company regulations (Peraturan Perusahaan), or collective labor agreements (PKB). Without explicit policy language, disputes over entitlement are difficult to resolve.

HR teams should document adoption and surrogacy leave terms clearly in company regulations before any situation arises. Some employers voluntarily align adoption leave with the standard three-month maternity entitlement as a recognized best practice.

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Bereavement Leave

Indonesian law mandates paid bereavement leave under Article 93(4) of Manpower Law No. 13/2003. Employers must grant this leave; it is not discretionary.

Covered relationships and their entitlements are:

• 1 day for the death of a household family member (anggota keluarga dalam satu rumah), meaning any relative living in the same home
• 2 days for the death of a spouse, parent, parent-in-law, or child

Bereavement for extended family members outside these categories has no statutory basis. Any additional leave in those cases falls under employer discretion and internal policy.

Other Leave Types

Indonesian law provides several additional paid leave categories beyond annual, sick, and family leave. Each is grounded in Manpower Law No. 13/2003.

Menstrual leave grants female employees 2 paid days on the first and second days of menstruation when they are ill and unable to work (Art. 81; Art. 93(2)(b)). Marriage leave provides 3 paid days for an employee's own wedding (Art. 93(4)(a)).

Civic duty leave covers paid time off to fulfil state obligations, such as voting on election day, under Art. 93(2)(d). Duration follows the length of the obligation. Religious obligation leave, under Art. 93(2)(e), provides paid leave for faith-required duties specific to the employee's religion.

Two further categories apply in workplace contexts:

• Union duty leave: paid leave to perform union duties, subject to employer approval (Art. 93(2)(h))
• Employer-mandated training leave: paid leave for education or training programs required by the employer (Art. 93(2)(i))

Collective leave (Cuti Bersama) refers to government-declared bridge holidays. These are mandatory for civil servants but voluntary for private-sector employers. Days taken are deducted from the employee's annual leave quota.

THR (Tunjangan Hari Raya) is a mandatory annual religious holiday bonus, not a leave type. Employees with 12 or more months of tenure receive one full month's salary. Those with less than 12 months receive a pro-rated amount. Payment must be made at least 7 days before the relevant religious holiday. Late payment carries a 5% fine.

Carry-Forward and Leave Encashment Rules

Unused annual leave may be carried over, but employees must use it within six months of the date the entitlement arises. After that window closes, the leave is forfeited under Article 79 of Manpower Law No. 13/2003.

Encashment applies on termination. If an employee is dismissed while unused annual leave still falls within the six-month window, that leave is compensable in cash as part of termination pay under Article 156(4).

Other leave types follow different rules:

• Long-service leave carry-forward is governed by company regulations or a collective labor agreement (PKB). No statutory carry-forward rule applies.
• Sick leave does not carry forward. Entitlement resets per illness episode.
• Event-based leave under Article 93(4) does not carry forward. It applies only when the qualifying event occurs.

Employers should document carry-forward and encashment rules explicitly in company regulations registered with the Ministry of Manpower. For a comparable framework in another major market, see the leave policy in India.

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Best Practices for Managing Leave Compliantly in Indonesia

Compliance with Indonesian leave law requires consistent attention to regulatory updates, documentation standards, and contract obligations. The following practices reduce exposure to penalties and disputes.

• Track public holiday updates annually. Monitor Joint Ministerial Decrees each year for changes to public holidays and Cuti Bersama dates. Apply Cuti Bersama deductions correctly for private-sector employees who opt in.
• Communicate entitlements in writing. Provide all employees with a written leave policy in Bahasa Indonesia. This is required for fixed-term PKWT contracts. Inform female employees of their menstrual leave rights under Article 81.
• Maintain complete leave records. Keep records of leave requests, medical certificates for sick and menstrual leave, and doctors' certificates for extended maternity leave. Register company regulations with the Ministry of Manpower.
• Offer above-floor benefits where practical. Consider adoption leave, extended paternity leave, and lactation facilities beyond the statutory minimum. Align THR payment schedules to avoid the 5% late-payment fine.

Using employer of record software helps track entitlements, automate leave calculations, and maintain audit-ready records across your Indonesian workforce.

Managing Leave Policy in Indonesia with Gloroots

Indonesia's leave framework spans several overlapping statutes: Manpower Law No. 13/2003, Job Creation Law No. 11/2020, the 2024 maternity and paternity legislation, and annual Joint Ministerial Decrees governing Cuti Bersama. Tracking obligations across all of these manually creates real compliance risk.

Gloroots operates as an Employer of Record in Indonesia. That means company regulations are registered and compliant from day one.

The platform tracks statutory leave balances, applies tiered sick-pay calculations, schedules THR payments, accounts for Cuti Bersama deductions, and computes termination encashment amounts. Each calculation follows the applicable statute, not an internal estimate.

For teams scaling headcount in Indonesia, Gloroots provides local execution under centralized governance. Review EOR services and pricing to understand what managed employment in Indonesia covers.

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Frequently Asked Questions About Leave Policy in Indonesia

When does an employee in Indonesia become eligible for annual leave?

Employees become eligible for annual leave after completing one full year of continuous employment with the same employer.

The statutory minimum is 12 days per year. Employees with six consecutive years at the same company receive one full month of leave in their seventh and eighth years of service.

How is sick leave pay calculated in Indonesia?

Sick leave pay follows a tiered structure set out in Manpower Law No. 13/2003. Employees receive 100% of salary for the first four months, 75% from months four to eight, 50% from months eight to twelve, and 25% thereafter until termination.

A medical certificate is required to access paid sick leave. Long-term sick leave beyond one year also requires a written recommendation from a doctor.

How much maternity leave are employees entitled to in Indonesia?

Employees in Indonesia are entitled to three months of maternity leave, paid at 100% of their standard salary.

The 2024 maternity legislation updated provisions in this area. Employers should confirm current entitlements under the applicable law at the time of the employee's leave.

What paternity leave does Indonesian law provide?

Indonesian law grants new fathers two days of paid leave for the birth of a child or in the event of a miscarriage.

This entitlement is set by statute and applies regardless of the employment contract terms. Employers cannot substitute this leave with other leave types.

What is Cuti Bersama and how does it affect leave balances?

Cuti Bersama refers to collective leave days declared annually by the Indonesian government through a Joint Ministerial Decree. These days are typically placed around public holidays to create longer rest periods.

Cuti Bersama days are deducted from an employee's annual leave balance. Employers must account for these deductions when calculating remaining leave entitlements each year.

What happens to unused annual leave when an employee is terminated in Indonesia?

When employment ends, unused annual leave that has already vested must be paid out to the employee. The calculation is based on the employee's daily wage rate.

Employers should track leave balances throughout the year to avoid disputes at termination. Accurate records are required under Indonesian labor regulations.

How many days of annual leave are employees entitled to in Indonesia?

Employees in Indonesia are entitled to 12 days of paid annual leave after 12 consecutive months of employment, under Article 79 of Manpower Law No. 13/2003.

Employees with six or more years of continuous service with the same employer receive one month of long-service leave in their seventh and eighth years, repeating every six years.

Can unused annual leave be carried over in Indonesia?

Yes, but within a strict limit. Under Article 79 of Manpower Law No. 13/2003, unused annual leave must be taken within six months of the date the entitlement arises.

Leave not used within that six-month window is forfeited. It cannot be carried into the following year.

What is the maternity leave entitlement in Indonesia?

Indonesian law grants 3 months of maternity leave at 100% salary under Article 82 of Manpower Law No. 13/2003. Under 2024 legislation, mothers whose newborn has certified health issues may extend leave to 6 months, with months 5 and 6 paid at 75% salary. A miscarriage entitles employees to 1.5 months of paid leave.

How many days of paternity leave does Indonesian law provide?

Article 93(4) of Manpower Law No. 13/2003 provides 2 days of paid paternity leave for the birth of a child or a miscarriage. Indonesia's 2024 legislation extends this to up to 5 days: 2 statutory days plus 3 additional days. Civil servants may qualify for a further extension with a doctor's certificate.

Is untaken annual leave paid out when employment ends in Indonesia?

Yes. Under Article 156(4) of Manpower Law No. 13/2003, annual leave that has not yet lapsed must be compensated in cash as part of termination entitlements. Leave that has already passed the six-month carry-forward window is not compensable.

Are female employees entitled to menstrual leave in Indonesia?

Yes. Under Article 81 and Article 93(2)(b) of Manpower Law No. 13/2003, female employees are entitled to two days of paid leave on the first and second days of menstruation when they are ill and unable to work. Normal salary applies for both days.