Indonesia Employment Law Tracker 2026: Every Change That Affects an Employer, Dated and Sourced

This page is a running log of Indonesian employment-law changes that alter what an employer must pay, file or write into a contract. Each entry gives the date the change took effect, the instrument that made it, what changed, what it means for an employer of record and its clients, and a link to the official text on a government legal database. Entries are verified on the date shown and re-verified when a new instrument is issued. If you are hiring through MixWork EOR, this is the list we work to; if you employ directly, it is the list your counsel should be checking against.

The change that matters most: a new Manpower Law by 31 October 2026

In Decision No. 168/PUU-XXI/2023, dated 31 October 2024, the Constitutional Court ordered the legislature to enact a new, standalone Manpower Law within two years, separating employment rules from the Job Creation omnibus. The same decision reaffirmed a five-year maximum for fixed-term (PKWT) contracts including extensions, required that a contested termination take effect only after a final and binding decision where bipartite negotiation fails, and moved approval of foreign-worker manpower plans to the Minister of Manpower.

On 27 August 2026 the DPR plenary approved the Draft Law on Employment Protection (RUU Pelindungan Ketenagakerjaan) as a parliamentary initiative bill, reported by Antara. Joint discussion with the government follows, and both the DPR leadership and the labour confederations have said publicly that they want the law enacted before the court’s deadline. What an employer should do now: expect a new principal Act referenced in every employment document, assume transitional provisions rather than an overnight rewrite of existing contracts, and have someone read the enacted text rather than the headlines. MixWork will log the enactment here with the article references that change contracts, working time, termination and severance, and will re-issue affected contract templates for the employees we employ.

2026 changes, most recent first

27 August 2026: Employment Protection Bill approved as a DPR initiative

The bill that is meant to become the new Manpower Law cleared the first parliamentary stage. No text is in force yet and nothing changes on a payslip today. It is on this page because the deadline is two months away and the enactment will be the largest employment-law event in Indonesia since the Job Creation Law.

March 2026: BPJS pension (JP) ceiling raised to IDR 11,086,300

The wage ceiling for Jaminan Pensiun contributions rose to IDR 11,086,300 a month (BPJS Ketenagakerjaan notice B/1226/022026), following the annual adjustment mechanism in Government Regulation No. 45 of 2015. Employer 2% and employee 1% contributions are calculated on wages up to the ceiling. Payroll systems that still carried the previous ceiling under-remit for anyone earning above it.

23 January 2026: DKI Jakarta sectoral minimum wages (UMSP) set

Jakarta issued its 2026 sectoral provincial minimum wages under Governor Decree No. 33 of 2026 across seven sectors, the first sectoral round since Government Regulation 49/2025 reinstated the mechanism (reported by Hukumonline and CNBC Indonesia). Where an employer’s business classification falls in a listed sector, the sectoral floor applies instead of the general UMP. For professional roles paid well above any floor this is a compliance check rather than a cost change.

1 January 2026: 2026 provincial and city minimum wages in force

Under Government Regulation No. 49 of 2025, the second amendment to the 2021 wage regulation, governors set 2026 floors with the alpha index raised to a 0.50 minimum. DKI Jakarta’s UMP is IDR 5,729,876 (Governor Decree No. 1142 of 2025, up 6.2% on 2025); West Java’s is the lowest province at IDR 2,317,601, yet Kota Bekasi’s UMK is IDR 5,999,443 and Kabupaten Karawang’s IDR 5,886,853. The city or regency UMK, not the provincial UMP, is the figure that binds an employer, and the minimum applies to employees with under a year of service; longer-serving staff follow the company wage structure. Full detail in our minimum wage guide.

1 January 2026: national holidays and joint leave for 2026

The Joint Decree of the Ministers of Religious Affairs, Manpower and Administrative Reform (SKB 3 Menteri Nos. 1497/2025, 2/2025 and 5/2025) fixes 17 national holidays and 8 joint-leave days for 2026. Joint leave is optional for private employers and is normally deducted from annual leave where granted; decide the policy in writing before the year starts. Eid al-Fitr falls on 21 and 22 March 2026, which under Minister of Manpower Regulation No. 6 of 2016 makes THR payable to Muslim employees no later than 14 March; THR for other faiths follows their holiday.

17 December 2025: Government Regulation 49/2025 in force

The second amendment to Government Regulation No. 36 of 2021 on Wages changed the minimum-wage formula (alpha index floor 0.50), reinstated sectoral minimum wages, and became the legal basis for every 2026 UMP and UMK decree. For an employer the practical effect is the 2026 figures above and a sectoral check where the business classification is listed.

1 January 2025: Coretax filing calendar, PMK 81/2024

Minister of Finance Regulation No. 81 of 2024 harmonised deposit dates under the Coretax system: PPh 21 withheld in a month is deposited by the 15th of the following month (article 94) and the monthly return is filed by the 20th (article 171). Several guides, including earlier versions of our own, carried the old 10th-of-the-month deadline; the 15th and 20th are current.

31 October 2024: Constitutional Court Decision 168/PUU-XXI/2023

The ruling that set the 31 October 2026 deadline for a new Manpower Law. It also reaffirmed the five-year PKWT cap including extensions, restated that Indonesian workers take priority in hiring, moved foreign-worker plan approval to the Minister, and required that a disputed termination take effect only after a final and binding decision when bipartite talks fail. Our PKWT vs PKWTT guide and termination guide carry the practical detail.

2 July 2024: Law 4/2024 on maternal and child welfare

Law No. 4 of 2024 set maternity leave at three months, extendable by up to three further months in defined medical circumstances for mother or child, with pay rules for the extension set out in the law, and gave fathers two days’ leave extendable by up to three more days or as agreed. Employees on maternity leave may not be dismissed. These are floors: an employer may grant more, and whatever is granted must be written into the contract or company regulation.

1 January 2024: effective-rate (TER) withholding for PPh 21

Government Regulation No. 58 of 2023 and Minister of Finance Regulation No. 168 of 2023 introduced monthly effective-rate withholding for January to November, with a true-up against the progressive brackets of Law No. 7 of 2021 in December. The brackets are 5% to IDR 60 million, 15% to 250 million, 25% to 500 million, 30% to 5 billion and 35% above.

Unchanged in 2026, and still asked about

• BPJS Kesehatan employer contribution 4% and employee 1% on wages up to IDR 12,000,000 (Presidential Regulation No. 64 of 2020). The standard inpatient class (KRIS) rollout changes hospital ward standards and the self-paying member tariff, not the employee percentage.

• BPJS Ketenagakerjaan employer rates: JHT 3.7%, JKK 0.24% to 1.74% by risk class, JKM 0.3%, JP 2% to the ceiling above, JKP funded by government and recomposition (BPJS Ketenagakerjaan published rates).

• Severance, long-service and compensation-of-rights payments under Government Regulation No. 35 of 2021, scaling with tenure and ground. See the severance guide.

• Employment contracts in Bahasa Indonesia under Law No. 24 of 2009; a bilingual version may be issued but the Indonesian text prevails.

Watch list

• Enactment of the Employment Protection Bill and its transitional provisions, expected before 31 October 2026. This entry will be replaced by the enacted text and article references.

• The 2027 minimum-wage round, normally announced in the fourth quarter, and any further amendment to the wage regulation.

• Implementing regulations under Law 4/2024 and any Ministry of Manpower regulation issued to give effect to Decision 168/PUU-XXI/2023 ahead of the new law.

How this tracker is maintained

Every entry links the official text on a government legal database (JDIH BPK, JDIH Kemenkeu, Mahkamah Konstitusi, Sekretariat Negara, BPJS Ketenagakerjaan) or, where an instrument is not yet published there, a named and dated news report, which is replaced with the primary text when it appears. Figures are re-verified when a new instrument is issued and the verification date is stated at the top of the page. Corrections: email support@mixwork.co with the entry and the correct source and we will fix it and log the change. This page is general information and not legal advice; a new Manpower Law is due within weeks, so have qualified Indonesian legal counsel confirm any requirement before you rely on it in a contract, a policy or a budget.

Changelog

• 12 September 2026: first publication. Entries from 1 January 2024 to 27 August 2026 verified against the linked instruments and reports.