What are the salary payment regulations? What about the 13th salary?

In Indonesia, salary structures and benefits are influenced by regional regulations and national practices. Here’s a concise overview of key aspects related to salaries in Indonesia:

Minimum Wage

Regional Variation: The minimum wage in Indonesia varies depending on the region, city, or island. Different areas may have different minimum wage rates based on local economic conditions and cost of living. To find the specific minimum wage for a particular region, refer to the Wage Indicator for Indonesia.

Salary Payment

Frequency: Salaries in Indonesia are paid on a monthly basis.
Payment Date: Salaries are typically paid at the end of each month, providing employees with regular monthly income.

13th Month Salary

Mandatory: Known as “Tunjangan Hari Raya” (THR), the 13th month salary is a mandatory benefit provided to employees.
Payment Timing: The THR must be paid at least one week before the start of a major religious holiday. This bonus is intended to support employees during significant religious festivities and is a legal requirement in Indonesia.

14th Month Salary

Optional: The 14th month salary is not mandated by law and is not a compulsory benefit.
Discretionary: Employers may choose to provide a 14th month salary as an additional benefit, but it is not required. When offered, it is typically paid in conjunction with the THR or as a part of the company’s end-of-year compensation practices.