Annual leave and sick leaves in Indonesia: what is important to know
In Indonesia, the situation with annual leave and sick leave is not as chaotic as many might think. The system is quite clearly spelled out in the law, but not everyone delves into it, hence the questions. It is important for employers and employees to understand their rights and obligations. This helps avoid disputes and unpleasant legal situations.
Labor relations are regulated by Indonesian legislation and the BPJS state social insurance system. BPJS provides medical care and social guarantees — old-age insurance, death insurance, and workplace accident insurance. So, there is a basic minimum in the country below which one cannot go:
annual leave
sick leave
official holidays.
However, details depend on the contract and company policy.
Let's sort out the labor legislation step by step and consider the main aspects and real-life examples related to medical certificates, sick leave, and vacations in Indonesia.
Legislative Acts Regulating Sick Leave and Vacations in Indonesia
For a more detailed understanding of the legal regulation of labor relations in Indonesia, it is useful to refer to the key regulatory acts that form the basis of the entire system. These include:
Labor Relations Act (Undang-Undang No. 13/2003 tentang Ketenagakerjaan) — the main law regulating labor relations, including annual leave and sick leave.
Social Protection Act (BPJS Ketenagakerjaan) — includes social insurance for workers: workplace accident insurance (JKK), old-age insurance (JHT), death insurance (JKM), and pension insurance (JP).
Minimum Standards for Working Time and Rest Act (Undang-Undang No. 13/2003, Bab XI) — establishes the minimum rights of workers to rest and vacation.
Mother and Child Welfare Act (Undang-Undang No. 4/2024 tentang Kesejahteraan Ibu dan Anak, KIA) — governs maternity leave, including the conditions for extending it.
Sick Leave in Indonesia
Contrary to popular belief, ordinary sick leave in Indonesia is not paid by the BPJS insurance system, but by the employer itself. The key rule is Article 93 of the labor law (Pasal 93 ayat (3), UU No. 13/2003, as amended by the Cipta Kerja law). It applies provided the illness is confirmed by a doctor's certificate.
How Much the Employer Pays
While the employee is ill, the employer continues paying wages on a declining scale tied to the length of the illness:
Months 1–4 — 100% of salary.
Months 5–8 — 75% of salary.
Months 9–12 — 50% of salary.
After month 12 and until the contract is terminated — 25% of salary.
Note: the count is by months, not days, and at this stage the payment is the employer's obligation, not BPJS's.
What Role Does BPJS Play
BPJS covers something different. BPJS Kesehatan medical insurance pays for the treatment itself — visits, hospitalization, procedures. BPJS Ketenagakerjaan insurance pays a cash wage-replacement benefit only in case of a workplace accident (the JKK program). Ordinary sick leave for a general illness does not go through these BPJS cash payments.
How Long This Lasts
The employer may not dismiss an employee due to illness as long as the continuous illness has not exceeded 12 months (Pasal 153 ayat (1) huruf a). After 12 months of continuous illness, termination of the employment contract becomes possible — with compensation paid under the established rules.
Calculation Example
Employee salary — 10,000,000 IDR per month. The employee fell ill and provided a doctor's certificate.
For the first 4 months of illness, they receive their full salary — 10,000,000 IDR per month.
From month 5 to month 8 — 7,500,000 IDR per month (75%).
From month 9 to month 12 — 5,000,000 IDR per month (50%).
The employer pays this entire amount.
Annual Paid Leave
In Indonesia, an employee is entitled to annual leave after working in the company for 1 full year.
Minimum - 12 working days of annual paid leave per year.
If an employee works less than a year, annual leave is not required by law (unless the company provides it voluntarily).
How Annual Leave Payments Are Calculated
Annual leave is paid proportionally to the salary.
Example:
Employee salary - 8,000,000 IDR per month
Assuming 30 days in a month.
8,000,000 ÷ 30 × 12 = 3,200,000 IDR
Thus, for 12 days of annual leave, the employee will receive 3,200,000 IDR.
Important: The company is not obligated to provide more than 12 days unless specified in the contract or internal rules.
Other Types of Leave
Maternity Leave
Since 2024, the rules for maternity leave have changed. Previously they were set out in the labor law (UU No. 13/2003, Pasal 82) — 3 months, split into 1.5 months before and 1.5 months after childbirth. Now a separate law applies — UU No. 4/2024 on Mother and Child Welfare (Kesejahteraan Ibu dan Anak, KIA).
Under this law (Pasal 4), an employee is entitled to maternity leave of at least 3 months. In special circumstances — health complications of the mother or child confirmed by a doctor's certificate — the leave can be extended by up to 3 more months, for a total of up to 6.
The leave is paid (Pasal 5). For the standard three-month leave, the employee receives 100% of her salary. If the leave is extended to 6 months, a scale applies: 100% of salary for the first 4 months and 75% for the 5th and 6th months.
The employer may not dismiss an employee during maternity leave.
Leave for Family Reasons
There is no separate mandatory "family leave" in the law.
But the company can provide for it in internal rules or a collective agreement.
Medical Certificates: What is Important to Know
In Indonesia, a doctor's certificate is mandatory if an employee goes on sick leave.
The employer has the right to:
request an official medical certificate;
verify its authenticity;
send the employee for an additional examination if there are doubts.
Certificates from private clinics are usually accepted.
Holidays in Indonesia
In Indonesia, there are quite a few official holidays.
These include:
National holidays (August 17, January 1, December 25, etc.)
Religious holidays (Idul Fitri, Idul Adha, and others)
On average, there are 15-20 official holidays per year.
If an employee does not work on an official holiday, it is considered a day off.
If they work, higher pay or compensation is due (according to labor legislation).
Cases
Let's consider real-life situations as examples:
Situation №1: Suspicious Certificate
An employee brought a certificate from a private clinic. The employer doubted it and sent the employee for an additional examination. The certificate was not confirmed, and sick leave was not paid.
Situation №2: Annual Leave Beyond the Norm
An employee requested 15 days of annual leave. According to the contract and law, 12 are allowed. The employer refused. The decision was in favor of the employer since the limit is established by law.
Situation №3: Day off for Religious Holiday
The restaurant employees requested an additional day off on a religious holiday that was not an officially designated day off in connection with the religious holiday. The employer refused; formally, he had the right.
Conclusions
12 days of paid annual leave per year — after 1 year of work.
Sick leave is paid by the employer on a salary scale (100% for the first 4 months), not by BPJS.
A medical certificate is mandatory.
Holidays are regulated by the official calendar.
The main thing is to check the conditions of the employment contract and current legislative requirements: most labor disputes arise not from the complexity of norms, but from mistakes in their application.
If you want to make sure that the accounting of annual leave, sick leave, and personnel payments is set up correctly and without risks, you can conduct a professional check of procedures and documents in advance — if necessary, you can always contact us for consultation and support.
