Typically, no. The legal entitlement accrues after 12 months of work. However, as a best practice, some companies allow pro-rated or unpaid leave during probation to be more attractive.
Understanding the types of employee leave and rest period in Indonesia is critical for business owners, HR managers, investors, and employees. Whether you run a startup, a multinational, or are a prospective client seeking legal clarity, knowing the legal framework helps you maintain compliance, optimize workforce productivity, and protect employee welfare.
Imagine this: one of your most valuable employees submits a resignation letter. The reason? Not a higher salary offers from a competitor, but chronic burnout and a feeling that the company does not respect their right to disconnect and recharge. In today’s competitive business landscape, particularly in a vibrant market like Indonesia, your most significant asset is your human capital. How you manage their time off is not just a matter of legal compliance—it’s a direct reflection of your company’s culture, values, and long-term viability.
Let’s transform this complex legal requirement from a source of anxiety into a strategic advantage for your business.
Employee leave and rest periods in Indonesia stem from multiple legal sources:
These standards define minimum requirements and ensure workers’ rights are respected while giving employers a clear compliance framework.
Below is a detailed breakdown of leave types under Indonesian law:
Under Article 79 of the Manpower Law, employees are entitled to 12 days of paid annual leave after completing 12 months of continuous service. Employers may set scheduling rules but must honor legal entitlements. Create clear, written policies to avoid disputes over unused leave or forced forfeiture.
Announced annually via presidential decree/ministerial decree and public holidays provide full paid leave, however collective leave is depending on the company policies. Collective leave can be applied with cutting the annual leave or not and all depend on the companies’ policies. Employers must comply as soon as they’re declared.
Per Article 93 of the Manpower Law, employees with medical certification are entitled to paid sick leave with a tapered payment: 100% salary for 4 months, 75% for the next 4 months, then 50%, then 25% until termination. Implement a medical verification process to manage validity, protections, and potential abuses.
Maternity Leave (Cuti Melahirkan): Three months paid—1.5 months before birth, 1.5 months after.
1,5 months given for miscarriage leave.
Female workers who feel pain on the first day and second day of their menstruation are entitled to not come to work.
Employees are entitled to paid leave to perform major religious pilgrimages, such as the Hajj for Muslims.
While not mandatory, some companies offer this leave as a reward for long-term service:
Employers do not have to provide extended types of leave (e.g., unpaid, study, sabbatical), but when they offer them and document them properly, they improve retention.
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Labor laws also guarantee rest break protections:
A 30-minute paid break is mandatory after every 4 hours of continuous work. Typically, companies allow 1 hour for lunch breaks.
Employees are entitled to:
Under PP No. 35/2021, employers must pay overtime at mandated rates and ensure sufficient rest following overtime shifts.
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Many companies in Indonesia face challenges such as:
It is advisable for you to conduct a regular training for HR, a fair grievance procedure, and consultation with legal expert mitigate these issues.
What happens if you get it wrong? The risks are multifaceted:
Managing the types of employee leave and rest period in Indonesia requires a balanced approach.
Understanding the types of employee leave and rest period in Indonesia is not just about legal compliance—it’s a strategic business imperative. It is about building a respectful, sustainable, and productive work environment. A well-rested and valued employee is more engaged, more loyal, and more innovative. By mastering the complexities of the Types of Employee Leave and Rest Period in Indonesia, you do more than avoid legal trouble, you build a foundation for long-term business success and become an employer of choice in one of the world’s most exciting economies.
We stand ready to guide you step by step, reach out to Kusuma & Partners Law Firm today to ensure your company is fully compliant and protected under Indonesia regulation.
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“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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