Employer of Record (EOR)
You want the person in Indonesia. You do not want to open a PT to get them. We employ them on paper, handle the local obligations, and you manage their work day to day.
What this covers
- Employment contracts that comply with Indonesian labour rules, including terms for term-of-contract and ongoing arrangements
- Monthly payroll processed on time, with payslips your employees can check
- BPJS Kesehatan and BPJS Ketenagakerjaan registration and monthly contributions
- PPh 21 income tax calculation, withholding and reporting
- Leave, benefits and allowances administered consistently with your policy
- Onboarding and offboarding, including exit documents and final settlements
- Work permits (KITAS) for foreign nationals you place with us
Who it is for
- Foreign companies making their first hire in Indonesia before deciding on an entity
- Distributed companies that need one or two people on the ground, not an office
- Companies testing the Indonesian market for six to twelve months
- Companies whose own entity is not yet licensed to run payroll
How it works
- Confirm the role and termsYou tell us who you are hiring, the salary, the benefits and the start date. We confirm the employment structure that fits Indonesian rules and send you the cost, including employer contributions.
- Contract and registrationWe issue the employment agreement, register the employee for BPJS and tax, and handle the paperwork. In most cases the person can start once the contract and registration are in place.
- Monthly payroll and compliancePayroll runs monthly, contributions and tax are filed, and you receive a consolidated report of what was paid and to whom.
- Day-to-day management stays with youYour employee works for you: you set priorities, approve leave and manage performance. We handle the legal employment relationship.
- Transition to your own entityWhen you are ready to open a local entity, we transfer the employment and hand over the records.
Why Satrio Consulting
EOR only works if the payroll and the compliance are genuinely correct, because you are trusting us with your employee's tax, health cover and pension. We are based in Jakarta, we work in Indonesian, and we handle immigration as well, so a foreign hire does not need a second vendor for their KITAS.
Payroll runs on BayarKerja
Payroll for EOR employees runs on BayarKerja, our own payroll software. PPh 21 (TER method) and BPJS are calculated automatically, and every line of the payslip shows its formula and legal basis, so you and your employee can see exactly how each deduction was reached. You can check a single salary yourself with the free PPh 21 calculator (in Indonesian).
What an Indonesian employer actually pays
These are the statutory costs that sit on top of the salary you set. They are the reason an EOR quote is never just "salary plus a fee", and they are what we administer for you.
| Contribution | Total | Employer | Wage ceiling |
|---|---|---|---|
| BPJS Kesehatan (health) | 5% | 4% | IDR 12,000,000/month |
| JHT (old-age savings) | 5.7% | 3.7% | none |
| JP (pension) | 3% | 2% | IDR 11,086,300/month |
| JKK (work accident) | 0.24-1.74% | all of it | none |
| JKM (death benefit) | 0.3% | all of it | none |
Employer contributions typically add 10-12% to gross salary. Your JKK rate depends on the industry risk class we register your employee under. Rates and ceilings are those in force in 2026 and are adjusted periodically, so we confirm the current figures on your quote rather than leaving you to look them up.
On top of that sits THR, the religious holiday allowance. It is a statutory right, not a discretionary bonus: one month of wages after twelve months of continuous service, prorated from the first month, and it must be paid in full no later than seven days before the employee's holiday. It cannot be paid in instalments or offset against other benefits.
Fixed-term or permanent?
Indonesian law gives you two contract shapes, and choosing the wrong one converts it by operation of law.
- PKWT (fixed-term). For work that is genuinely temporary, seasonal, or project-based. Total duration including every extension cannot exceed five years. When a PKWT ends, a statutory expiry compensation (uang kompensasi) is owed: one month of wages for each twelve months worked, prorated for shorter service, calculated separately for each contract. It is payable even when the contract simply runs out on schedule.
- PKWTT (permanent). The default for ongoing roles. Terminating it triggers a statutory severance scale that runs from one month of wages under a year of service up to nine months at eight years or more, and usually sits alongside long-service pay and compensation for unused entitlements, so the real total is higher than the severance table alone.
We draft the contract that matches the role you are actually hiring for, and we tell you which one that is before you commit.
Hiring a foreign national
If the person is not Indonesian, employment is only half the paperwork. The employer side has to be in place before the employee can be placed: the foreign manpower plan (RPTKA), the work permit notification, the entry visa, then the stay permit (KITAS) and the compulsory foreign worker compensation fund (DKPTKA, USD 100 per month). We handle that sequence through our KITAS service, which is the same team, so you are not coordinating an EOR and an immigration agent who have never spoken.
EOR, contractor, or your own PT?
- EOR when you need one or a handful of people in Indonesia, quickly, without an entity. No setup, no local board, no accounting function of your own. It is the right answer for market testing and for hires that must start this quarter.
- Contractor only when the work is genuinely independent and outside your operational control. Use it to staff an ongoing role and Indonesian law can reclassify the relationship, with the tax and severance exposure landing on you.
- Your own PT when the headcount and the permanence justify it. That is a real threshold, and we will tell you when you have crossed it instead of billing you an EOR fee forever.
Questions
What is the difference between EOR and hiring a contractor?
With a contractor you take on the risk that the arrangement does not match Indonesian employment rules. With EOR the person is legally employed by us, the tax and social contributions are correct, and you are not exposed to a reclassification problem.
How long does onboarding take?
It depends on how quickly the documents and the contract are signed. We will give you a realistic date once we see the role and the candidate's paperwork.
What does it cost?
There is a monthly service fee on top of the employee's salary and the statutory employer contributions. We will quote your specific case rather than publish a rate that may not reflect your headcount or payroll complexity.
Can we move the employee onto our own entity later?
Yes. That is the normal path: EOR first, your own PT when the volume justifies it, and we handle the transfer.
What does an EOR cost on top of the salary?
Your quote has three parts: the salary you set, the statutory employer contributions (BPJS Ketenagakerjaan and Kesehatan, typically adding 10-12% of gross), and our monthly service fee. THR is a separate statutory payment due each year. We itemise all of it before you sign, and the BayarKerja payslip shows every line to the employee.
Who is the legal employer, and who manages the person?
We are the legal employer: the employment agreement is in our name, we run payroll, remit tax and social contributions, and carry the severance obligation. You direct the work, set priorities and manage performance, exactly as you would with your own employee.
What happens if we need to end the employment?
Termination in Indonesia follows a statutory process and a severance scale, and getting the process wrong is what turns a normal exit into a dispute. We handle the notice, the calculation and the documents, and we tell you the cost before you commit to the decision.
Do you handle the work permit as well?
Yes, for foreign nationals. RPTKA, the work permit notification, the entry visa, the KITAS stay permit and the DKPTKA fund are all handled by the same team through our KITAS service.
Ready to start?
Tell us the role and we will tell you honestly whether we can fill it, how long it should take and what it will cost.
Prefer email? recruitment@satriocs.com · We reply within one business day.