# Hiring in Indonesia

Review edition — pending Theo Smith approval.

## What does employment cost above salary?

The 2026 THR circular requires the religious holiday allowance to be paid no later than seven days before the relevant religious holiday. Employees with at least one month’s continuous service qualify; the amount depends on service and the applicable wage basis.

Applies to: Indonesian employment; permanent and fixed-term employees under the circular

Still to establish: Service-based calculation, wage components, holiday and any more favourable terms

- Service-based calculation, wage components, holiday and any more favourable terms

Next step: Confirm Service-based calculation, wage components, holiday and any more favourable terms.

- [Indonesian Ministry of Manpower](https://jdih.kemnaker.go.id/asset/data_puu/2026senaker003.pdf)

Checked 2026-09-28. Research status: partial.

## When must payroll and payments happen?

The 2026 THR circular requires the religious holiday allowance to be paid no later than seven days before the relevant religious holiday. Employees with at least one month’s continuous service qualify; the amount depends on service and the applicable wage basis.

Applies to: Indonesian employment; permanent and fixed-term employees under the circular

Still to establish: Service-based calculation, wage components, holiday and any more favourable terms

- Service-based calculation, wage components, holiday and any more favourable terms

Next step: Confirm Service-based calculation, wage components, holiday and any more favourable terms.

- [Indonesian Ministry of Manpower](https://jdih.kemnaker.go.id/asset/data_puu/2026senaker003.pdf)

Checked 2026-09-28. Research status: partial.