Find out how to calculate overtime pay, unpaid leave deductions, and leave encashments for employees in Indonesia.
How to calculate overtime pay
Employees who work more than their normal working hours are entitled to overtime pay. Overtime rate in Indonesia is 1.5 times normal hourly rate during the first hour and rises to 2 times from the second hour onwards, therefore the calculation is carried out by multiplying the overtime rate with 1/173, subsequently multiply it with the employee’s salary rate.
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How to calculate pay after unpaid leave
Calculating unpaid leave depends on company regulations, but the process is customarily carried out by dividing the total unpaid leave with the number of working days in the month, subsequently multiply it with the employee’s salary rate.
How to calculate leave encashment
Leave encashment calculation depends on company regulations, but is customarily carried out by dividing the employee’s total remaining leave with their total working days, subsequently multiply it with their salary rate.