Equal Employment in Indonesia: Pay, Leave and Hiring Rules

Equal employment in Indonesia rests on two short articles of the Manpower Law, Law No. 13 of 2003 (UU 13/2003; Undang-Undang is Indonesian for a law passed by parliament). Every job-seeker has an equal opportunity to obtain work without discrimination (Article 5), and every employee is entitled to equal treatment from the employer (Article 6). Neither article was changed when the Job Creation Law, UU 6/2023, amended the Manpower Law.

For an employer, that comes down to four practical points: pay set by the role, a minimum share of employees with disabilities, protection for women around childbirth, and job adverts that ask for what the work needs. None of them is complicated once the pay structure and leave rules are in place. A new manpower bill is before the House of Representatives: this article states the law in force on 15 September 2026, and we will update it if the new law changes these points.

What equal employment in Indonesia requires

The grounds an employer may not use to treat people differently are sex, ethnicity, race, religion, skin colour and political affiliation, and equal treatment extends to people with disabilities (elucidation to Articles 5 and 6, the official explanatory notes published with the law).

The same principle governs recruitment. Placement is to be open, objective, fair and equal, matching people to jobs by their skills, talent and ability (Article 32). Indonesia has also ratified the two International Labour Organization (ILO) conventions on the subject: Convention 100 on equal pay for work of equal value (UU 80/1957) and Convention 111 on discrimination in employment (UU 21/1999).

Where an employer does treat staff unequally, central or regional government can impose administrative sanctions (Article 190, as amended by UU 6/2023).

Pay for work of equal value

Every employee is entitled to the same wage for work of the same value, and to equal treatment in how the company’s wage system is applied (Government Regulation (PP) 36/2021 on Wages, Article 2(2) and (3)). Work of equal value means work of the same weight within one company, measured by competence, work risk and responsibility, among other things (elucidation to Article 2(3)).

So two employees can be paid differently. What matters is the reason.

A written wage structure that sets pay by role and grade is the simplest way to show that a difference follows the job. MAM’s payroll team applies that structure to every employee each month, so pay follows the role rather than the person.

Employing people with disabilities

For equal employment in Indonesia, the Disabilities Law, UU 8/2016, in force since 15 April 2016, adds a minimum share of employees with disabilities.

An employee with a disability is paid the same as a colleague doing the same kind of work with the same responsibility (Article 49), may not be dismissed because of the disability (Article 11(d)), and is given reasonable accommodation and accessible facilities at work (Article 50(1)).

The law also works the other way. Government must give incentives to private companies that employ people with disabilities, such as easier licensing, awards and help providing accessible facilities (Article 54(1) and its elucidation).

Protections for women employees

The main rules now sit in UU 4/2024 on the welfare of mothers and children, in force since 2 July 2024.

A working mother is also entitled to a fair opportunity and proper facilities for health care and lactation during working hours (Article 4(3)(c)). A husband is entitled to two days’ leave when his wife gives birth, which can be extended by up to three more days or by agreement (Article 6(2)(a)).

Reasons that cannot end employment

As amended in 2023, the Manpower Law bars an employer from dismissing someone for practising their religion, for marrying, or for differences of belief, religion, political affiliation, ethnicity, skin colour, group, sex, physical condition or marital status (Article 153(1)).

A dismissal on any of these grounds is void by law, and the employee is reinstated (Article 153(2)).

Job advertisements and age limits

In May 2025 the Ministry of Manpower told regional governments that employers should not discriminate on any ground when recruiting (Circular No. M/6/HK.04/V/2025, 28 May 2025). The Ministry expects an age requirement only where the nature of the job genuinely affects a person’s ability to do it, and never in a way that takes away the chance of getting work. The same applies to candidates with disabilities.

A circular is the Minister’s guidance to officials rather than a regulation. Its words are general, so an advert built around the job itself follows it most easily:

• The skills and qualifications the role requires
• The experience the work calls for
• An age range only where the work itself depends on one
• No requirements about appearance or marital status unless the role truly depends on them

Questions employers ask

What this means for you

In practice, equal employment in Indonesia asks for a few settled habits: pay set by the role, adverts written around the job, and maternity leave granted as the law sets it.

MAM takes the pay side off your hands. The same monthly payroll that applies your wage structure also handles BPJS (the state social security contributions), PPh 21 (the income tax withheld from salaries) and the religious holiday allowance. To see what a new hire costs in total before you advertise, use the cost of an employee calculator. If an earlier pay run needs putting right, common payroll mistakes explains how corrections are made.