Staff Costs in Indonesia for 2027: What Is Settled and What Is Still Pending
Indonesia's 2027 provincial minimum wages are not yet announced, the health minister says no rise in national health insurance contributions is planned, and the 2027 holiday calendar is fixed. Here is one planning table that separates the settled from the pending.As of 10 November 2026, Indonesia's provincial minimum wages for 2027 (UMP, upah minimum provinsi) have not been announced, while several other staff cost components already have firm footing: the 2027 public holidays and Eid al-Fitr dates are fixed, overtime rates are set in Law 27/2026, in force since 28 October 2026, and the health minister said on 14 August 2026 that no rise in national health insurance contributions is planned. For an owner drafting next year's budget, that means some rows can take a number and others must take a scenario.
What already has firm footing
Holidays and Eid. On 15 September 2026 the Ministry of State Secretariat announced the joint decree of three ministers: 2027 has 18 national holiday days and 8 collective leave days (cuti bersama, government-designated days off attached to holidays). Eid al-Fitr 1448 H is set for 10 to 11 March 2027, with collective leave on 9, 12 and 15 March. The announcement notes that Islamic holiday dates follow a determination by the Ministry of Religious Affairs, so they can still shift.
Overtime. According to Fortune Indonesia on 9 November 2026, Law 27/2026 took effect on promulgation on 28 October 2026. Overtime is paid at 1.5 times the hourly wage for the first hour and 2 times for each hour after that, capped at 4 hours a day and 18 hours a week, and requires the worker's consent and a written or digital instruction.
Severance reserve fund. The same law requires a severance reserve fund, and micro and small businesses are exempt. Implementing regulations are due within a year of promulgation, so the detail does not exist yet.
What is still pending
The 2027 minimum wage. According to Metro TV News on 27 October 2026, the manpower minister aims to complete initial discussions on the 2027 UMP in the last week of November 2026. Governors set the wage with input from provincial wage councils. There is no figure yet, and we will not guess one.
Health insurance contributions. According to Fortune Indonesia on 15 August 2026, Health Minister Budi Gunadi Sadikin told the 2027 draft budget press conference that the government does not plan to raise contributions to BPJS Kesehatan, the national health insurer, in 2027, and that the central government would support it if it runs a deficit. Current monthly contributions per class follow Presidential Regulation 64/2020: class I Rp150,000, class II Rp100,000, class III Rp42,000, of which class III members pay Rp35,000 and the government subsidises the rest.
Two caveats. The statement is three months old and says "no plan", which is not a guarantee. In the same article, BPJS Kesehatan president director Prihati Pujowaskito says claims of about Rp16.5 trillion a month exceed contributions of Rp14 trillion, with a risk of payment default in mid-2027 without government intervention. Also, the figures above are per-class contributions, not the percentage deducted for salaried workers. Our sources contain neither that percentage nor the contributions to BPJS Ketenagakerjaan, the employment social security agency, so we do not state them. Use the numbers on your own bills.
Special provisions for micro and small businesses. Fortune Indonesia writes that Law 27/2026 exempts micro and small businesses from the minimum wage provisions while requiring them to pay at least 50% of the minimum wage. Who qualifies and how it applies should be confirmed before you rely on it.
The planning table
The status column summarises the sources above. The last column is our advice.
| Component | Status as of 10 November 2026 | Source | How to budget it |
|---|---|---|---|
| Base pay | Waiting for the 2027 UMP | Metro TV News | Three increase scenarios |
| Overtime | Rates are set | Fortune Indonesia | Planned hours times the rate |
| Holiday allowance (THR) | Eid date fixed, amount per the rules in force | State Secretariat | Set aside monthly until February |
| Health insurance contributions | No rise planned, not guaranteed | Fortune Indonesia | Current figure plus a buffer |
| Other social security contributions | Not covered by our sources | Your bills | Latest billed figure |
| Leave and holidays | 18 national holidays, 8 collective leave days | State Secretariat | Rota and cover plan |
| Severance reserve fund | Implementing rules not yet issued | Fortune Indonesia | Log as a risk |
Filling in the uncertain rows
This section is our practical advice. The percentages below are our choices for a budgeting exercise, not a forecast of the minimum wage.
Pay. Take your current monthly wage bill and build three columns: no increase, a moderate increase and a high one, say 0%, 5% and 8%. For an invented wage bill of Rp50 million a month, the difference is Rp2.5 million and Rp4 million a month, or Rp30 million and Rp48 million a year. A wage rise also lifts overtime, the holiday allowance and any contribution calculated on pay. When the governor announces the figure, replace the three columns with one.
Overtime. With the rates known, the sum is direct. An invented example: an hourly wage of Rp30,000 and three hours of overtime. The first hour costs Rp45,000 and the next two Rp60,000 each, Rp165,000 in total. Multiply by the overtime hours you plan for busy season.
Holiday allowance. THR (tunjangan hari raya) is the religious holiday allowance employers pay before the main religious holiday. With Eid on 10 to 11 March 2027, the money must be ready in early March. The amount and payment deadline follow the manpower ministry's rules in force, which our sources do not contain. On the cash side, set aside a third of the amount in each of December, January and February, so it does not land on top of March salaries.
Holidays. Mark 9 to 15 March on your production and delivery calendar, and draw up rotas early if you stay open.
Buffer. Add one buffer row for what is undecided: social security contributions and the implementing rules of Law 27/2026.
Keep it easy to update
A good Indonesia payroll budget 2027 is not the one that guesses best but the one that is easy to update. When attendance, leave, overtime and payroll are recorded in one place, changing one number shows its effect at once. Polynusa provides attendance, leave and payroll, see the pricing page.
Note: wage, overtime, holiday allowance and contribution rules depend on business size, province and employment agreements. Confirm your own case with an employment consultant or the local manpower office.
Sources
- Metro TV News, 27 October 2026: Pembahasan Awal UMP 2027 Ditargetkan Rampung Akhir November
- Fortune Indonesia, 15 August 2026: Menkes Pastikan Iuran BPJS Kesehatan Tak Naik pada 2027
- Ministry of State Secretariat, 15 September 2026: Inilah SKB 3 Menteri Libur Nasional dan Cuti Bersama 2027
- Fortune Indonesia, 9 November 2026: UU Nomor 27 Tahun 2026 Resmi Berlaku
FAQ
When will Indonesia's 2027 provincial minimum wages be announced?
As of 10 November 2026 they have not been. According to Metro TV News, the manpower minister aims to finish initial discussions in the last week of November 2026, and governors set the wage with input from provincial wage councils.
Will national health insurance contributions rise in 2027?
According to Fortune Indonesia, Health Minister Budi Gunadi Sadikin said on 14 August 2026 that the government does not plan to raise them in 2027. That is a three-month-old statement of intent, not a guarantee, and the same article reports deficit pressure on the insurer.
When is Eid al-Fitr in 2027 and why does it matter for payroll?
The State Secretariat announced Eid al-Fitr 1448 H on 10 to 11 March 2027. Funds for the religious holiday allowance therefore need to be ready in early March, sooner than in years when Eid falls in late March or April.