Hiring Employees Indonesia 2026 | Employer Guide

Q: What is the minimum wage in Bali for 2026?

Each kabupaten/kota in Bali has its own UMK (district minimum wage). Denpasar and Badung typically have the highest UMK in Bali, currently around IDR 3.2-3.5 million per month. Employers must pay at least UMK for full-time employees.

Q: What is the difference between PKWT and PKWTT contracts?

PKWT is a fixed-term contract (max 5 years including extensions). PKWTT is a permanent/indefinite contract. PKWT workers get compensation pay at contract end. PKWTT workers get severance upon termination. Probation is only allowed for PKWTT.

Q: What BPJS contributions must employers pay?

Employers pay: BPJS Kesehatan (4% of salary), BPJS Ketenagakerjaan JKK (0.24-1.74%), JKM (0.3%), JHT (3.7%), and JP (2%). Employee share: Kesehatan (1%), JHT (2%), JP (1%). Registration within 30 days of hiring is mandatory.