Overtime by Employees Working in Indonesia

Maximum Overtime Amount for Employees in Indonesia

Article 77 of the Labor Law regulates the amount of working hours for an employee working for an Indonesian company. In general an employee can have either:

1. a work week of six working days, seven hours per day and maximum 40 hours per week (Six Day Work Week); or
2. a work week of five working days, eight hours per day and maximum 40 hours per week (Five Day Work Week).

Any extra hours in a day/week are considered overtime hours. Overtime work can be performed by an employee for maximum three hours per day and 14 hours per week. This restriction is not applicable to overtime performed on public holidays or weekly rest days.

Overtime Rights and Obligations for Employer and Employee

The Labor Law and Overtime Regulation set certain requirements to overtime work:

1. There must be a written order from the employer and the written consent of the employee for the performance of overtime
2. The employer must pay overtime wages to the employee
3. The employer must provide an opportunity for adequate rest
4. The employer must provide food and drinks (minimum 1400 Kcal), in case overtime is performed by the employee for three hours or more.

Amount of Overtime Wages for Employees in Indonesia

The calculation of overtime wage is based on the monthly wage (basic wage + fixed allowances) of the employee. The calculation of overtime wage is as follows:

1. For overtime performed in weekdays, for the first overtime hour, wages must be paid at one and a half times the hourly wage and for every subsequent overtime hour, wages must be paid at two times the hourly wage.
2. For overtime performed on a weekly rest day and/or a public holiday which falls on a weekly rest day for a Six Day Work Week:
  a. the first seven hours: two times the hourly wage
  b. the eight hour: three times the hourly wage;
  c. the ninth and tenth hour: four times the hourly wage.
3. For overtime performed on a weekly rest day which falls on a week day for a Six Day Work Week:
  a. the first five hours: two times the hourly wage;
  b. the sixth hour: three times the hourly wage;
  c. the seventh and eighth hour: four times the hourly wage.
4. For overtime performed on a weekly rest day and/or a public holiday for a Five Day Work Week:
  a. the first eight hours: two times the hourly wage;
  b. the ninth hour: three times the hourly wage;
  c. the tenth and eleven hour: four times the hourly wage.

Employees which are not Entitled to Overtime Compensation

Employees that hold a certain higher level position, who can be considered as thinkers, planners, implementers and are able to control the course of the company and whose time cannot be restricted by working hours as set by the company are not entitle to overtime payment.

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