What are the standard working hours and overtime regulations in Indonesia?
In Indonesia, there are strict regulations governing the working hours and conditions under which employees can work overtime. Understanding these rules is crucial for both employers and employees to ensure compliance with local labor laws and fair treatment in the workplace.
Standard Working Hours
The standard working hours in Indonesia are capped at a maximum of 40 hours per week. Employers and employees can agree to one of the following work schedules:
- 7 hours per day for 6 days a week.
- 8 hours per day for 5 days a week.
Overtime Work
Overtime work is allowed in Indonesia, but there are specific conditions that must be met:
- Approval Required: Overtime can only be performed with the explicit approval of the employee. It is not mandatory, and employees must consent to any overtime requested by their employer.
- Maximum Overtime: Employees can work a maximum of 4 hours of overtime per day and no more than 18 hours of overtime per week.
Compensation for Overtime
Employees in Indonesia are entitled to additional compensation for any overtime worked, calculated as a percentage of their regular salary:
- First Overtime Hour: 150% of the regular hourly salary.
- Second Overtime Hour and Beyond: 200% of the regular hourly salary.
Compensation for Work on Public Holidays
If employees are required to work on public holidays, they are entitled to higher compensation rates:
- First 8 Hours: 200% of the regular hourly salary.
- 9th Hour: 300% of the regular hourly salary.
- 10th and 11th Hours: 400% of the regular hourly salary.
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