Indonesia Severance (Pesangon) Calculator for Employees

About the Indonesia Severance (Pesangon) Calculator for Employees

Work out what an Indonesian employer owes when a job ends, under Government Regulation (PP) 35/2021 and the Manpower Law as amended by Law 6/2023. Severance pay (uang pesangon, UP) and long-service pay (uang penghargaan masa kerja, UPMK) come from two scales by completed years of service, and each is multiplied by the factor the reason for leaving carries: 1× for a takeover or an efficiency measure to prevent losses, 0,5× for closure after losses, 1,75× for retirement, 2× for death or a long illness. Compensation for rights (uang penggantian hak, UPH) is added: untaken leave, the trip home and other items of the contract.

Choose the reason, enter the service as years and months or as dates, and the wage: the calculator applies the scales and the multipliers, the wage rules for daily and output pay, the separation pay of the reasons that have no severance, an employer pension that stands in for part of it, and a fixed-term contract’s compensation money. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the total due in full, with the first rows of the working, while every other figure stays hidden until you unlock it with a Pro pass.

The two scales

Severance pay (uang pesangon), by completed years of service (PP 35/2021 art. 40(2)):

• under 1 year: 1 month
• 1 to under 2 years: 2 months
• 2 to under 3 years: 3 months
• 3 to under 4 years: 4 months
• 4 to under 5 years: 5 months
• 5 to under 6 years: 6 months
• 6 to under 7 years: 7 months
• 7 to under 8 years: 8 months
• 8 years or more: 9 months

Long-service pay (uang penghargaan masa kerja), from 3 completed years (art. 40(3)):

• 3 to under 6 years: 2 months
• 6 to under 9 years: 3 months
• 9 to under 12 years: 4 months
• 12 to under 15 years: 5 months
• 15 to under 18 years: 6 months
• 18 to under 21 years: 7 months
• 21 to under 24 years: 8 months
• 24 years or more: 10 months

The Manpower Law as amended by Law 6/2023 sets the same scales (art. 156).

The multiplier of each reason

PP 35/2021 arts. 41–57 give each reason its own multiple of the two scales (UP and UPMK), or only compensation for rights with the separation pay the contract sets:

• Merger, consolidation or separation of the company: the worker does not continue, or the employer does not keep the worker (art. 41): UP 1× · UPMK 1×
• Takeover of the company (art. 42(1)): UP 1× · UPMK 1×
• Takeover that changes working conditions, and the worker does not continue (art. 42(2)): UP 0,5× · UPMK 1×
• Efficiency measures because the company suffers a loss (art. 43(1)): UP 0,5× · UPMK 1×
• Efficiency measures to prevent a loss (art. 43(2)): UP 1× · UPMK 1×
• Closure because of losses over 2 years (continuous or not) (art. 44(1)): UP 0,5× · UPMK 1×
• Closure not because of a loss (art. 44(2)): UP 1× · UPMK 1×
• Closure because of force majeure (art. 45(1)): UP 0,5× · UPMK 1×
• Force majeure that does not close the company (art. 45(2)): UP 0,75× · UPMK 1×
• Suspension of debt payments (PKPU) because of a loss (art. 46(1)): UP 0,5× · UPMK 1×
• Suspension of debt payments (PKPU) not because of a loss (art. 46(2)): UP 1× · UPMK 1×
• Bankruptcy of the company (art. 47): UP 0,5× · UPMK 1×
• The worker asks to end the employment because the employer abused or threatened them, paid the wage late for 3 months in a row or more, or did another act of art. 36(g) (art. 48): UP 1× · UPMK 1×
• A dispute body finds the employer did not do what the worker claimed, and the employer ends the employment (art. 49): separation pay
• The worker breaks the contract or company rules after a first, second and third warning (art. 52(1)): UP 0,5× · UPMK 1×
• An urgent violation the contract or company rules name (such as fraud or theft) (art. 52(2)): separation pay
• Absent for 5 or more working days in a row without notice, after 2 written calls (art. 51): separation pay
• Detained by the authorities for 6 months (or convicted sooner) over an alleged crime that causes the company a loss (art. 54(1) and (4)): separation pay
• Detained by the authorities for 6 months (or convicted sooner) over an alleged crime that causes the company no loss (art. 54(2) and (5)): UPMK 1×
• Resignation, asked for in writing at least 30 days before (art. 50): separation pay
• Long illness or disability from a work accident, unable to work after 12 months (art. 55): UP 2× · UPMK 1×
• Retirement age (art. 56): UP 1,75× · UPMK 1×
• The worker dies (paid to the heirs) (art. 57): UP 2× · UPMK 1×

In a bankruptcy the curator pays. A worker who receives a termination notice and refuses it has 7 working days to reply in writing; a dispute goes to bipartite talks first, then to the industrial relations dispute procedure (art. 39).

The wage the scales use

Severance and long-service pay are worked out on the basic wage and fixed allowances given to the worker and the family. A wage paid by the day counts as 30 × the daily wage for a month; output pay as the average monthly pay of the last 12 months, and never less than the minimum wage of the company’s area (the Manpower Law art. 157 as amended).

Compensation for rights, separation pay and pensions

Every termination of art. 40 adds compensation for rights (uang penggantian hak): annual leave not yet taken and not expired, the cost of the trip home for the worker and the family to where the worker was hired, and other items the contract, company regulation or collective agreement sets (art. 40(4)). For a resignation, an absence of 5 working days or more, an urgent violation and some other reasons the worker gets these rights and the separation pay (uang pisah) the contract or company rules set, and no severance. A resignation gives them when it is asked for in writing at least 30 days before, the worker is not bound by a service bond (ikatan dinas) and keeps working until the day it starts (art. 36(i)).

An employer that pays into a pension programme for the worker under the pension fund laws (dana pensiun) can count its contributions towards severance, long-service and separation pay, as the contract, company regulation or collective agreement sets, and pays the difference when the pension is less (art. 58). At a micro or small business the amounts are agreed between the employer and the worker (art. 59).

Fixed-term contracts

A fixed-term contract (PKWT) gives compensation money (uang kompensasi) instead when it ends, from 1 month of continuous service: months of the contract ÷ 12 × one month’s wage, which is a whole month for 12 months and more for longer contracts; an extension earns its own when it ends, and a contract ended early by either side earns it for the service done. It is not paid to foreign workers, and at a micro or small business it is agreed (PP 35/2021 arts. 15–17; the ministry’s English translation). One month’s wage is the basic wage and fixed allowances; where the company pays no such components it is the wage without allowances, and where it pays the basic wage and allowances that vary, the basic wage alone (art. 16).

The side that ends a fixed-term contract before its term also owes the other side the wages up to the end of the term as damages (Manpower Law art. 62, which Law 6/2023 leaves as it is); the calculator does not add them.

Newer rules

PP 35/2021 carries out the Manpower Law as amended by Law 6/2023. The Ministry of Manpower’s legal database lists both as in force, together with the Constitutional Court’s reviews of Law 6/2023, among them decision 168/PUU-XXI/2023 on a review brought by labour unions. A new Manpower Law or regulation could change these amounts: check the database before you rely on a figure.

Limitations

• Follows PP 35/2021 for workers of companies; civil servants and state workers have rules of their own.
• The tax on severance and the other payments is not worked out.
• Unpaid wages, THR, the value of a day of leave and the trip home are not worked out for you: enter the amounts your contract or payslips give.
• Completed years pick each band; months beyond them do not raise the scale.
• A collective agreement or company regulation may give more; at a micro or small business the amounts are agreed.
• MySmartCoPilot is not a law firm: the result is an estimate from the regulations, not legal advice. Have an HR professional or lawyer check the amounts before you sign a settlement.

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