After hiring remote employees in Indonesia, the next step is to onboard them effectively a process that often involves extensive documentation, tax setup, and benefit enrollment. A well-planned onboarding experience can significantly boost engagement and retention. For global companies, partnering with an Employer of Record (EOR) in Indonesia simplifies this process by ensuring that every onboarding step aligns with local employment laws and HR best practices.
Through an EOR, businesses can handle everything from employment contracts and BPJS registration to payroll setup and PPh21 tax compliance all while ensuring new hires feel welcomed and integrated into the organization.
Table of Contents
- Employee Onboarding Process
- Before the Job Offer Letter
- After the Job Offer Letter
- On Joining Day
- Post Onboarding
- Seamless Onboarding for New Employees in Indonesia with Asanify
- FAQs
Employee Onboarding Process
An EOR in Indonesia helps new hires integrate into your company both legally and culturally. From BPJS registration to THR eligibility and tax documentation (PPh21), each stage must comply with the Manpower Law (Law No. 13/2003, as amended by the Omnibus Law).
The EOR takes on all compliance and HR administrative responsibilities such as drafting localized employment contracts, enrolling employees in mandatory social insurance programs, and ensuring payroll accuracy while you, the client company, focus on orientation and role-specific training. This ensures a seamless experience where compliance and employee satisfaction go hand in hand.
Before the Job Offer Letter
The onboarding journey starts even before the offer letter is sent. During this stage, the employer and EOR coordinate to identify suitable candidates, verify their work eligibility, and design a compliant compensation package.
The Client Company Is Responsible For:
- Conducting interviews and evaluating candidate fit.
- Determining compensation based on Indonesia’s regional minimum wage (UMR/UMP) and industry benchmarks.
- Outlining job roles, expectations, and remote work policies.
- Establishing communication plans and onboarding goals.
The EOR Partner Plays a Key Role By:
- Verifying candidate work eligibility (for locals and foreign nationals).
- Advising on regional wage requirements, statutory benefits, and BPJS contribution rates.
- Structuring salaries in line with PPh21 tax regulations and ensuring compliance with Indonesian labor law.
- Guiding the employer on necessary documentation, including KTP (ID), NPWP (tax number), and BPJS registration forms.
Suggested Read: Employer of Record in Indonesia Cost: 2025 Hiring & Payroll Breakdown
After the Job Offer Letter
After the candidate accepts the offer letter in Indonesia, the Employer of Record completes the legal documentation and sets up compliance registrations. This ensures the employee is fully ready to start work under Indonesian law.
The EOR Is Responsible For:
- Conducting background verification (identity, employment history, and criminal checks).
- Drafting a compliant employment contract based on Indonesian labor law, including working hours, probation period, leave, and severance terms.
- Registering the employee with BPJS Ketenagakerjaan and BPJS Kesehatan.
- Setting up PPh21 income tax withholding and reporting procedures.
- Collecting and verifying employee documents (KTP, NPWP, bank account details).
The Client Company Is Responsible For:
- Sending a formal welcome message and company introduction.
- Sharing onboarding materials such as training manuals and access to collaboration tools.
- Preparing necessary hardware or software for the remote role.
- Assigning a mentor or buddy to support the employee’s integration.
On Joining Day
The first day of employment is crucial for setting the tone of a long-term professional relationship. The EOR finalizes employment documents, activates payroll accounts, and orients employees to HR systems.
The EOR Handles:
- The EOR signs and files all contracts and compliance forms.
- Setting up payroll and employee benefits, including BPJS deductions and tax calculations.
- Providing access to self-service HR portals for payslips, leave requests, and benefits information.
- Assisting with bank account setup for salary deposits.
The Client Company Handles:
- Conducting a virtual welcome session to introduce the employee to the team and company culture.
- Explaining company policies, code of conduct, and work expectations.
- Providing access to internal tools, IT systems, and communication platforms.
- Launching a buddy program or assigning a mentor to help the employee settle in smoothly.
Post Onboarding
After onboarding the employee, the EOR continues managing all HR, payroll, and compliance functions throughout the employment period. Meanwhile, the client company focuses on performance management, engagement, and retention.
The EOR Is Responsible For:
- Explaining the first paycheck breakdown, including PPh21 deductions, BPJS contributions, and THR (Tunjangan Hari Raya) entitlements.
- Managing monthly payroll, tax submissions, and statutory filings.
- Handling ongoing compliance, including leave management and employment record maintenance.
- Ensuring timely updates on any legal or regulatory changes affecting employees.
The Client Company Is Responsible For:
- Conducting performance reviews and providing regular feedback.
- Maintaining consistent communication to build engagement and trust.
- Recognizing achievements and providing growth opportunities.
- Supporting employee well-being and work-life balance initiatives.
Suggested Read: Employer of Record in Indonesia: Complete 2025 Hiring & Compliance Guide
Seamless Onboarding for New Employees in Indonesia with Asanify
Asanify simplifies the onboarding process for remote employees in Indonesia by combining technology, compliance expertise, and local HR support. Asanify sets up payroll, enrolls employees in BPJS, and manages tax filings, handling every detail so you can focus on building your team.
Here’s How Asanify Adds Value:
- Faster Onboarding: Get employees onboarded within 48 hours without creating a legal entity.
- Full Compliance: Manages BPJS registration, PPh21 tax filing, and THR payments.
- Digital Documentation: All contracts, ID proofs, and forms are securely managed online.
- Seamless Payroll: Payroll is automated with accurate statutory deductions and reporting.
- Employee Benefits: Offers health insurance, leave management, and wellness options.
- Cultural Integration: Local HR experts assist with induction, team introductions, and feedback setup.
With Asanify’s Employer of Record in Indonesia, global companies can confidently expand their workforce, ensuring a compliant, quick, and welcoming onboarding experience.
FAQs
Employees must provide a valid KTP (ID card), NPWP (tax ID), bank account details, and BPJS registration information.
The steps include background checks, contract signing, BPJS and tax registration, payroll setup, and cultural orientation.
Employees must be enrolled in BPJS Ketenagakerjaan and BPJS Kesehatan within 30 days of joining.
Yes, all employees full-time or remote are entitled to THR (Tunjangan Hari Raya) equivalent to one month’s salary, typically paid before major religious holidays.
The employer must withhold and remit PPh21 (personal income tax) from the employee’s salary every month.
An EOR ensures compliance, reduces paperwork, and streamlines payroll, tax, and benefits setup for new hires.
Yes, provided they hold a valid work permit (IMTA) and KITAS. The EOR handles documentation and visa compliance.
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.
