Managing employee leave in Indonesia involves more than setting the number of vacation days in an employment contract. Employers must account for statutory annual leave, paid sick leave, maternity and paternity leave, menstrual leave, public holidays, and paid absences for important family events.
These entitlements come from several legal sources, including Law No. 13 of 2003 on Manpower, as amended by Law No. 6 of 2023, Constitutional Court Decision No. 168/PUU XXI/2023, and Law No. 4 of 2024 on Maternal and Child Welfare.
For companies hiring in Indonesia, an unclear or outdated leave policy can create payroll errors, employee disputes, and compliance risks. This guide explains the key leave entitlements employers should understand in 2026 and shows how to turn those requirements into a practical company policy.
Employee Leave Entitlements in Indonesia at a Glance
The main statutory leave entitlements include:
- Annual leave: At least 12 working days after 12 consecutive months of service.
- Sick leave: Paid leave for employees who are medically unable to work, with wage payments decreasing during prolonged illness.
- Maternity leave: A core period of at least three months, with a possible extension of up to three additional months under qualifying medical circumstances.
- Paternity leave: Two days for childbirth, with up to three additional days where agreed with the employer.
- Miscarriage leave: Leave for an employee who experiences a miscarriage, supported by medical documentation. A working husband is also entitled to two days when his wife experiences a miscarriage.
- Menstrual leave: Paid leave on the first and second day of menstruation when an employee experiences pain and is unable to work.
- Leave for important family events: Paid absence for events such as marriage, childbirth, circumcision, baptism, and the death of specified family members.
- Public holidays: Paid days off on officially declared national public holidays, subject to the rules that apply when employees are required to work.
- Collective leave: Government announced collective leave dates whose implementation in private companies depends on applicable company rules and agreements.
- Extended rest or long service leave: Applicable to certain companies, with the details regulated through employment agreements, company regulations, or collective labour agreements.
Types of Employee Leave in Indonesia
Employee leave falls into two main categories: mandatory leave, which is regulated by the government, and optional leave, which can be an extra perk for employees.
1. Annual Leave in Indonesia
Employees are entitled to at least 12 working days of paid annual leave after completing 12 consecutive months of service with the same employer.
This is a minimum legal entitlement. Employers may provide annual leave before the employee completes one year, offer leave on a proportional basis, or grant more than 12 days. These additional benefits should be stated in the employment agreement, company regulations, or collective labour agreement.
2. Sick Leave and Sick Pay in Indonesia
Sick leave is a statutory employment right in Indonesia. An employee who is unable to work because of illness should normally provide a medical certificate or other documentation required under the company’s lawful policy.
There is no single statutory number of sick days that applies to every illness. For a prolonged medical absence, the Manpower Law establishes a decreasing wage payment schedule:
- First four months: 100 percent of wages
- Second four months: 75 percent of wages
- Third four months: 50 percent of wages
- Subsequent months before lawful termination: 25 percent of wages
3. Maternity Leave in Indonesia
Indonesia’s maternity protections are governed by both the Manpower Law and Law No. 4 of 2024 on Maternal and Child Welfare.
The Manpower Law traditionally provides 1.5 months of leave before the expected delivery date and 1.5 months after childbirth, based on calculations from an obstetrician or midwife.
Law No. 4 of 2024 strengthened maternity protections by establishing an initial maternity leave period of at least three months and allowing up to three additional months where special medical circumstances apply. These circumstances may include health complications affecting the mother or child, supported by an appropriate medical certificate.
For maternity leave extending beyond the initial period, the wage protection is generally:
- 75 percent of wages for the fifth and sixth months
- Full wages for the first three months
- Full wages for the fourth month
4. Miscarriage Leave
An employee who experiences a miscarriage is entitled to 1.5 months of paid leave, or a different period stated in a certificate from an obstetrician or midwife.
The employer should handle this leave sensitively and protect the employee’s medical privacy. The policy should identify the minimum documentation required without asking for unnecessary personal details.
A working husband is entitled to two days of paid leave when his wife experiences a miscarriage.
5. Paternity Leave in Indonesia
A working husband is entitled to two days of paid leave when his wife gives birth.
Law No. 4 of 2024 allows this period to be extended by up to three additional days, as agreed between the employee and employer. This means a company may provide up to five days around childbirth under the statutory framework and agreed extension.
Employers may offer a longer period as part of their benefits package. If they do, the policy should clarify whether the additional days are fully paid and whether they are separate from annual leave.
Paternity leave should be listed as its own entitlement. It should not be hidden under annual leave or treated as an informal manager approved absence.
6. Menstrual Leave
Under Article 81 of the Manpower Law, a female employee who experiences pain during menstruation and is unable to work is entitled to leave on the first and second day of menstruation.
This entitlement is paid and should not be deducted from annual leave. The practical process for requesting menstrual leave may be regulated in an employment agreement, company regulation, or collective labour agreement.
Employers should make the procedure clear, private, and proportionate. A complicated process or excessive documentation requirement may discourage employees from exercising a statutory right.
What is Collective Leave?
Collective leave, commonly known as cuti bersama, consists of additional dates announced by the government, often around major religious or national holidays.
National public holidays and collective leave are not the same. Collective leave arrangements announced for the public sector do not automatically require every private company to close.
For private employers, implementation generally depends on the company’s employment agreements, company regulations, collective labour agreement, and operational decision. Where a private company observes collective leave, the day may reduce an employee’s annual leave balance according to the applicable rules.
Optional Leave Types
There are two optional leave that employee can take:
1. Sabbatical Leave
Sabbatical leave is a longer break that employees can use for research, skill refreshment, or just to rest and travel.
Some companies, like The Smart Local, one of Singapore’s largest lifestyle portals, offer sabbatical leave to give their employees time off to recharge.
2. Leave After Major Events
Companies with high-demand periods or major events often compensate employees with additional leave, separate from their annual leave.
For example, after launching a new product or during big sales events like 12.12 (National Shopping Day), companies like Lazada offer extra leave days to their employees as a way to thank them for the hard work.
Manage employees in Indonesia with greater confidence
Leave compliance is connected to employment contracts, payroll, statutory contributions, onboarding, employee records, and termination procedures. Managing each area through a different provider can create gaps, particularly when your company does not have an established local HR and legal team.
Glints TalentHub gives you one connected solution to source, hire, onboard, pay, and manage professionals in Indonesia. Through Employer of Record, Professional Employer Organization, payroll, and talent acquisition support, you can build your team while keeping local employment requirements at the centre of your operations.
Ready to hire and manage talent in Indonesia? Speak with a Glints TalentHub expert about the right employment model for your business.
Frequently Asked Questions About Employee Leave in Indonesia
How many annual leave days do employees receive in Indonesia?
Employees are entitled to at least 12 working days of paid annual leave after completing 12 consecutive months of service. Employers may provide a more generous entitlement.
Can employees take annual leave before completing one year?
The statutory entitlement becomes available after 12 consecutive months of service. An employer may voluntarily allow proportional leave or advance leave during the employee’s first year.
Is sick leave paid in Indonesia?
Yes. Employees who are medically unable to work are entitled to paid sick leave. Pay is generally maintained at 100 percent for the first four months and then reduces during a prolonged absence according to the statutory schedule.
How long is maternity leave in Indonesia?
Employees receive an initial maternity leave period of at least three months. Up to three additional months may be available under qualifying medical circumstances. Employers should align their policies with both the Manpower Law and Law No. 4 of 2024.
How long is paternity leave in Indonesia?
A working husband is entitled to two days for childbirth. Up to three additional days may be provided as agreed with the employer under Law No. 4 of 2024.
Is menstrual leave mandatory?
Yes. An employee who experiences menstrual pain and is unable to work is entitled to paid leave on the first and second day of menstruation. The entitlement should not be deducted from annual leave.
Is collective leave compulsory for private companies?
Not automatically. Private companies determine how collective leave will be implemented through their employment agreements, company regulations, collective labour agreements, and operational policies.
Can unused annual leave be carried forward?
Carryover depends on the applicable employment agreement, company regulation, or collective labour agreement. Employers should state the rule and any expiry period clearly.
Must unused leave be paid when employment ends?
Annual leave that has accrued, has not been used, and has not expired may form part of the employee’s compensation upon termination, subject to the applicable employment terms and Indonesian law.
Can employers offer more leave than the legal minimum?
Yes. Employers may provide additional annual leave, longer parental leave, family care leave, sabbaticals, or other benefits. These enhanced entitlements should be documented and applied consistently.
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