Employers in Indonesia are responsible for withholding taxes on behalf of their employees. Employers must also make contributions to Indonesia’s social security and healthcare programs.
Employee Taxes in Bali
Per Indonesian regulations, employers must withhold taxes when paying employees. The tax rate ranges from 5% to 30% depending on how much the employee makes.
Employers must also withhold taxes on severance pay. The rate for severance pay over IDR 50,000,000 ranges from 5% to 25% depending on the amount. Severance pay that is IDR 50,000,000 or lower is non-taxable.
Social Security and Health Insurance for Employees in Bali
Badan Penyelenggara Jaminan Sosial (BPJS) is Indonesia’s social insurance administration. Employers must make mandatory contributions to the BPJS for each employee.
Employees must also make contributions to BPJS. As such, the employer must withhold contributions from the employees’ wages. Note that contributions are also mandatory for foreigners working in Bali for at least 6 months.
BPJS contributions will go toward:
- Working accident insurance
- Death insurance
- Pension plan
- Old age savings
How Emerhub Can Help with Employee Taxes and BPJS
Emerhub can help you manage your employees’ taxes and BPJS contributions. Our services include the following:
- Calculating withholding taxes for all employees
- Preparing and submitting your business’ tax reports
- Paying taxes on your behalf
- BPJS registration for your company and employees
- Calculating and paying BPJS contributions on your behalf
Emerhub’s accounting team will be happy to help you with employee tax and BPJS computation in Bali. We also offer other tax and payroll management services. Fill out the form below to get in touch with us.