Are you looking to expand into Indonesia and wondering how much it really costs to hire employees compliantly? You’re in the right place. Understanding the Employer of Record (EOR) in Indonesia cost is essential for global businesses planning to hire remote or on-site teams in Southeast Asia’s largest economy.
This guide breaks down all key EOR cost components from base salaries and BPJS contributions to PPh21 tax, THR payments, and EOR service fees helping you plan your hiring budget with complete transparency.
Table of Contents
- What is an Employer of Record in Indonesia?
- How Does an EOR Work in Indonesia?
- Key Employer of Record Services in Indonesia
- Factors Influencing Employer of Record Indonesia Cost
- Is EOR in Indonesia More Affordable Than Entity Setup?
- How Much Does an Employer of Record Cost in Indonesia?
- EOR Pricing Structure in Indonesia
- Smart Ways to Avoid Hidden EOR Costs
- Final Words – Employer of Record Indonesia Cost
- FAQs
What is an Employer of Record in Indonesia?
An Employer of Record (EOR) in Indonesia is a licensed third-party organization that employs workers on behalf of foreign companies. It handles payroll, taxes, employment contracts, BPJS registration, and compliance with Indonesian labor laws while you manage day-to-day work.
For global companies without a legal entity in Indonesia, EORs make market entry fast, affordable, and compliant. They remove the complexity of local regulations under Law No. 13/2003 (Manpower Law) and its Omnibus amendments.
Simply put, an EOR enables you to hire employees in Indonesia without setting up a local subsidiary saving both time and money.

How Does an EOR Work in Indonesia?
EORs act as the legal employer in Indonesia. They take care of employment contracts, payroll, BPJS (social security), and PPh21 tax obligations while you supervise the employee’s performance and responsibilities.
Here’s how it works step-by-step:
- The EOR hires the employee under its Indonesian entity.
- You define the role, salary, and daily tasks.
- The EOR manages payroll, tax filing, and statutory benefits.
- Employees receive monthly payslips and compliance-backed employment protection.
- You pay a consolidated monthly invoice covering salary, statutory costs, and service fees.
This model is particularly effective for remote teams, sales operations, or project-based hiring in Indonesia.
Suggested Read: Why Startups Choose EOR in 2025 for Global Hiring Success
Key Employer of Record Services in Indonesia
An EOR in Indonesia provides end-to-end employment administration, allowing companies to stay compliant without setting up a PT PMA or local entity. Typical services include:
1. Payroll Management
- Salary processing, payslip issuance, and reporting under Indonesian payroll standards.
- PPh21 tax withholding and monthly submission to the Directorate General of Taxes.
- Annual reporting (Form 1721) for all employees.
2. BPJS Registration and Contributions
- BPJS Ketenagakerjaan (Employment Social Security) and BPJS Kesehatan (Health Insurance) are mandatory.
- Employers contribute about 10.24%–11.74% of gross salary; employees contribute 3%–4%.
3. THR (Tunjangan Hari Raya) Payment
- Mandatory religious bonus paid once per year, equal to one month’s salary, before the employee’s major religious holiday.
4. Employment Contracts and Compliance
- Legally compliant contracts under Indonesian Manpower Law.
- Overtime, leave, and severance policies aligned with government regulations.
5. Onboarding & Offboarding Support
- Handling work permits (if foreign employees are involved).
- Smooth exit processing and final settlement management.

Factors Influencing Employer of Record Indonesia Cost
EOR pricing in Indonesia depends on several local and operational factors. Here’s what drives the total cost:
1. Employee Compensation
Base salaries vary by role, skill level, and city. For example:
- Jakarta tech professionals: USD 1,000–2,500 (IDR 16–40 million/month)
- Manufacturing workers in West Java: USD 300–600 (IDR 5–10 million/month)
Higher salaries increase BPJS and PPh21 tax bases, directly affecting EOR costs.
2. BPJS and Statutory Contributions
EORs must register employees under both BPJS programs. Contributions are split between employer and employee, influencing your overall payroll cost.
Contribution Type | Employer % | Employee % |
BPJS Ketenagakerjaan | 6.24% | 2% |
BPJS Kesehatan | 5% | 1% |
(Rates may vary slightly depending on wage ceilings.)
3. THR and Annual Bonuses
Annual THR adds approximately 8.3% to yearly payroll costs. Some companies also offer performance or 13th-month bonuses, which are processed by EORs.
4. Number of Employees
Larger teams usually enjoy lower per-employee service fees due to volume discounts.
5. Complexity of Payroll and Benefits
Custom allowances, expense reimbursements, and multi-currency payments increase administrative costs.
Is EOR in Indonesia More Affordable Than Entity Setup?
Yes, significantly. Setting up a PT PMA (foreign-owned company) in Indonesia involves high upfront investment and months of bureaucracy.
Comparison Area | Local Entity Setup | Employer of Record (EOR) |
Setup Time | 3–6 months | 1–2 weeks |
Initial Costs | USD 15,000–30,000 | None |
Monthly Compliance | High (tax, HR, audit) | Included in EOR fee |
Flexibility | Rigid | Highly scalable |
For global startups and mid-sized firms, EOR solutions offer a faster and cheaper route to test the Indonesian market or hire remote talent.

How Much Does an Employer of Record Cost in Indonesia?
EOR fees in Indonesia generally range from USD 250 to USD 500 per employee per month (IDR 4–8 million), depending on the provider and service level.
This typically includes:
- Payroll management and payslips
- BPJS contributions and reporting
- PPh21 tax filing
- THR calculation
- HR support and compliance documentation
Premium EORs may charge higher for enterprise-level customization, visa handling, or multi-country integration.
EOR Pricing Structure in Indonesia
Here’s a simplified view of the common pricing models and cost breakdowns:
1. Monthly Service Fee
Most EORs charge a fixed monthly rate per employee.
- Example: USD 300 (IDR 4.8 million) per employee/month for payroll, compliance, and HR support.
2. One-Time Setup Fee
Covers initial onboarding, BPJS registration, and system setup.
- Range: USD 500–1,000 (IDR 8–16 million) one-time.
3. Statutory Employer Contributions
Added on top of gross salary, typically 10–12% for BPJS and other programs.
4. Currency & Transaction Fees
If your billing currency is not IDR, FX fees (1–2%) may apply for conversion.
Comparison Table – EOR Providers in Indonesia (2025)
Provider | Pricing Model | Approx. Cost (USD) | Transparency | Best For |
Asanify | Flat monthly fee | $250–$350 | High | Startups & SMEs expanding in Indonesia |
Deel | Flat fee | $599–$650 | High | Global enterprises hiring across Asia |
Remote | Flat fee | $599–$650 | Transparent | Multinational teams |
Multiplier | Flat fee | $400–$500 | High | Mid-market firms expanding regionally |
Papaya Global | Tiered | $650+ | Medium | Large corporations with complex needs |
Asanify remains one of the most cost-effective Indonesia-focused EOR providers offering localized compliance, BPJS management, and bilingual support.

Smart Ways to Avoid Hidden EOR Costs
Transparency is critical when evaluating EOR pricing. Here’s how to avoid unexpected expenses:
- Ask for a detailed quote: Request itemized invoices for salary, statutory charges, and service fees.
- Confirm inclusion of BPJS and THR: Some EORs exclude these, which can inflate costs later.
- Check exchange rate policies: Fluctuations between USD and IDR can affect your total billing.
- Negotiate based on volume: Hiring 5+ employees may unlock discounted rates.
- Review contracts carefully: Ensure there are no termination or exit fees hidden in fine print.
Suggested Read: Employer of Record vs Contractor | 2025 Hiring & Compliance Guide
Final Words – Employer of Record Indonesia Cost
Partnering with an Employer of Record in Indonesia is not just a cost-saving strategy it’s a gateway to fast, compliant, and flexible market expansion.
By understanding the full breakdown of EOR costs – salaries, BPJS, PPh21, THR, and service fees you can confidently budget for your Indonesian workforce.
Providers like Asanify make this process seamless with transparent pricing, local expertise, and hands-on payroll management, allowing you to focus on scaling your business.
FAQs
Typically between USD 250–500 (IDR 4–8 million) per employee per month, depending on role and provider.
Salaries, BPJS contributions, PPh21 tax, THR, and the EOR’s monthly service fee.
Yes. Setting up a PT PMA can cost USD 15,000+ and take months, while an EOR enables hiring in days at minimal cost.
Reputable providers like Asanify include both BPJS registration and PPh21 tax filing in their standard package.
Yes, EORs calculate and process Tunjangan Hari Raya (THR) as required by law.
Wages must be paid in Indonesian Rupiah (IDR), but EORs handle currency conversion transparently.
Yes. As long as the EOR is registered locally and compliant with Manpower Law and BPJS regulations.
Hire through local-focused providers, negotiate for longer contracts, and keep payroll structures simple.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.