Indonesia PPh 21 Salary Tax Calculator (TER Method)

About the Indonesia PPh 21 Salary Tax Calculator (TER Method)

Work out the income tax an Indonesian employer withholds from a permanent employee’s pay (PPh Pasal 21) the way the rules have worked since the average effective rates (tarif efektif rata-rata, TER) came in: every month except the last, the month’s gross pay times the TER of the employee’s category; in the last tax period, December or the month the job ends, the tax for the year with the progressive rates, less what was already withheld.

Enter the PTKP status, the salary and allowances, any bonus or THR by month, and either let the calculator work out the BPJS contributions from the wage or type your own. It shows each month’s PPh 21 and take-home pay, the December true-up step by step (a refund when too much was withheld), and a regular month’s payslip lines. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the PPh 21 of a regular month, its TER category and rate, and the first rows of each table, while the other figures stay hidden until you unlock them with a Pro pass.

How TER works

PP 58/2023 sets three monthly tables of average effective rates, by the PTKP status at the start of the year (art. 2(4)):

• Category A: TK/0, TK/1 and K/0 — 0% up to Rp 5.400.000 a month, rising to 34% above Rp 1.400.000.000.
• Category B: TK/2, TK/3, K/1 and K/2 — 0% up to Rp 6.200.000, 34% above Rp 1.405.000.000.
• Category C: K/3 — 0% up to Rp 6.600.000, 34% above Rp 1.419.000.000.

The rate applies to the whole month’s gross pay, not to a slice of it, and the rates already allow for the job expense, the pension contributions and the PTKP. That is why a month with a THR or a bonus is withheld at a higher rate: its gross falls in a higher row of the table.

What counts as gross pay

Gross pay is everything the employer gives for the work: salary, every allowance, overtime, bonuses, THR, and the premiums it pays for you to BPJS Ketenagakerjaan for work accidents (JKK) and death (JKM), to BPJS Kesehatan for health insurance (JKN, 4% of the wage up to Rp 12.000.000) and to other insurers (PMK 168/2023 art. 5(3)). The employer’s own contributions to old-age savings (JHT) and the pension (JP) are not your income (art. 7(c)). The BPJS rates come from the BPJS Ketenagakerjaan and BPJS Kesehatan pages; the JP contribution stops at a wage cap BPJS publishes (Rp 10.547.400 on its page), which rises every year.

The last tax period: the year settled

In December, or in the month the job ends, the employer works out the tax for the year, or for the months worked, with the rates of the Income Tax Law (art. 17(1)(a) as amended by UU 7/2021): 5% up to Rp 60.000.000 of taxable income, 15% to Rp 250.000.000, 25% to Rp 500.000.000, 30% to Rp 5.000.000.000 and 35% above. Taxable income is the gross pay less:

• the job expense (biaya jabatan): 5% of gross, at most Rp 500.000 a month or Rp 6.000.000 a year;
• your pension and old-age contributions (JHT, JP, an approved pension fund) paid through the employer;
• zakat or another obligatory religious contribution paid through the employer to an approved body;
• the PTKP: Rp 54.000.000 for yourself, Rp 4.500.000 if married and Rp 4.500.000 for each dependant, up to 3,

rounded down to the thousand (PMK 168/2023 arts. 8–10). What the earlier months withheld comes off; when they withheld more than the year’s tax, the employer refunds the difference with the withholding slip by the end of the next month (art. 21).

Part of a year, and no NPWP

A resident who joins or leaves an employer during the year has the year settled in the last month worked, on that period’s income with the full PTKP and a job expense of at most Rp 500.000 for each month; the annual tax return adds income from other employers. Someone whose tax residence starts after January or ends before December (who arrives in or leaves Indonesia) has the net income annualised for the rates and the tax taken in proportion to the months (PMK 168/2023 art. 15(3)). A recipient without a tax ID (NPWP) is withheld at a rate 20% higher (Income Tax Law art. 21(5a)).

Limitations

• For permanent employees (pegawai tetap) who are Indonesian tax residents, paid monthly by an employer in Indonesia; daily and other non-permanent workers, pensioners and non-employees follow other rules of PMK 168/2023, and pay to a non-resident is withheld under PPh 26 instead (20% of the gross, or a tax treaty’s rate).
• The tax allowance method (gross-up, where the employer pays the PPh 21 as an allowance) and PPh 21 borne by the government under a separate facility are not worked out.
• The BPJS amounts follow the published rates on a wage of basic salary and fixed allowances; enter your payslip’s amounts when your employer counts the wage differently, or the health insurance wage is below the regional minimum wage.
• Severance, pension lump sums and other payments taxed with final rates are not covered.
• MySmartCoPilot is not a tax adviser: the result is an estimate from the regulations, not tax advice. Check a disputed case with a tax consultant or the tax office.

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