E-Book Building HR Function For Your Startup

Building HR
Function for
Your Startup
Glints in Collaboration with ZEN Rooms
employers.glints.id Copyright © 2020 Glints Global. All rights reserved.

Copyright © 2020 Glints Global. All rights reserved.
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Table of Contents
I About Us
II Overview
01 People Strategy: Talent Planning
03 Recruitment Life Cycle Process
05 HR Administrative
15 Talent Engagement Essentials
21 Global Concept of Learning & Development
24 Performance Review and Study Case
29 Employer Branding: Start Small
32 HR Practitioner Opinion
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About us
Glints is one of the fastest

growing human resources and
career development company
in Southeast Asia.
We provide end-to-end
service to recruit top talents
fast backed with AI technology
and experience recruiters.
Find out more of our services

here and get started for FREE
COVERED BY
TRUSTED BY LEADING COMPANIES
Building HR Function for Your Startup I

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Overview
Every startup needs to start somewhere. Many startups begin with the owner or a non-Human
Resource executive handling employment issues. It’s because someone must oversee
administrative duties and policies concerning payroll and withholding taxes.
Starting to organize employment issue from ground zero and tuning it to operate effectively
requires time, patience and careful consideration. On top of that, it requires a step-by-step
plan to identify what is being done correctly and what is not, what needs to be changed, and
how HR will grow with the business over time.
This e-book will help you to build human resource function from the start to the most
essential one. It covers seven core human resource processes; talent planning, recruitment,
human resource administrative according to Indonesian Labor Law, talent engagement,
learning & development, performance review, and employer branding.
Building HR Function for Your Startup II

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“ Human Resources is not a thing

we do. It’s the thing that runs our
“
business.
Steve Wynn, CEO of Wynn Resorts Limited
Building HR Function for Your Startup III

People Strategy:
Talent Planning
Building HR Function for Your Startup 1

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What is Talent Planning?

People management function starts from planning the numbers of employees across the
organization. Talent plan is a crucial part when you begin to organize human resource function.
Talent planning encompasses how the company will plan the needs of manpower for the current
time and in the future. What is more, a talent plan holds an essential role in ensuring the quality of
the manpower. It will contribute to how the company evaluates the manpower gap in terms of
number and competencies.
To create a talent plan, you can start by following these steps:
01 Identify the current manpower’s skills

02 Analyze the current manpower’s strengths and weaknesses
03 Determine the type of talent you'll need for key roles in the future
04 Assess the learning and development programs that are needed to be prepared for the
current staff for future openings

Recruitment Life
Cycle Process

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The Importance of Recruitment

Process
After we have a comprehensive talent plan strategy that structures how a company plans for
hiring, developing, and retaining current and future employees, we will get the current state of the
manpower in the company. Knowing the current state will help you decide whether you need to
have more manpower or not. If the outcome indicates you to have more people, the next step
would be recruiting people to join the company.
01 Preparation
This is where we initiate the number
of open roles, the set budget range,
the selection process, recruitment
marketing, calibration with the hiring
manager and anything related to 02 Sourcing or Screening
recruitment before the sourcing Sourcing is the proactive searching for
process. qualified candidates; while screening is
reviewing applications that were sent to
the company’s email/job portal. Both
processes have a function to generate
application leads before the next step.
03 Selection process
Selection is defined as the process of
choosing the right candidates for the
vacant positions. The processes can
be varied: administration test, study
case, interview with human resources
and hiring manager, etc. The
selection process can be set while we 04 Hiring/ Offering
do the preparation (first process). Once we get the selected candidate, the
last step is to offer the position. We can
do it through a call for the
announcement, but make sure to send
the offer via email or letter as the formal
way to do it. Components to be put in
the offer email/letter can be diversified,
but make sure to define: the role,
location, working time, contract
type/period, start date, direct report’s
name, compensation and benefits.

HR Administrative

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What is HR Administrative?
Human resource administration is vital to every business and every employee. It covers a wide
range of areas, including payroll and compensation, recruiting, performance and training,
labour relations, and organizational development.
The role of HR administration is responsible to ensure that the

organization stay compliant with regulations.

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Employment Contract for

Local Workers
Based on Indonesia Labor Law Article 56, Indonesia has two kinds of employment contract:
1. Fixed-term employment contract (PKWT - Perjanjian Kerja Waktu Tertentu).
2. Permanent employment contract (PKWTT - Perjanjian Kerja Waktu Tidak Tertentu).
Differentiation between both contracts are shown in the table below:
Accounts Fixed-term employment contract Permanent employment contract

(PKWT) (PKWTT)
Period of contract Limited time period. No limited time (unless the

employee is retired or passed
away).
Termination process Termination by law as agreed in the Termination must have specific
contract agreement, not reason and must be processed
necessarily to be processed through LPPHI (Lembaga
through LPPHI (Lembaga Penyelesaian Perselisihan
Penyelesaian Perselisihan Hubungan Industrial).
Hubungan Industrial).
Severance Pay If the termination of contract is Employer needs to pay for

being done in accordance to the severance pay based on the
end of contract period, employer employee’s length of service.
doesn’t have to pay for anything.
If the termination of contract is

being done before the end of
contract period, the party who
terminates is (can be employer/
employee) has to pay the amount
of monthly pay agreed.
Probation No probation period. Probation period is allowed.
Agreement Need to be written, in Latin Can be written or spoken (no

alphabets and in Bahasa Indonesia. mandatory format).
Employment Employment of employee needs to It’s not mandatory to register the

registration be registered to DISNAKER employment to DISNAKER
(Municipal Representative of the (Municipal Representative of the
Manpower Ministry). Manpower Ministry).

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Employment Contract for

Foreign Workers
If you are planning to have foreign workers to work in the company, it is necessary for you to
check the requirements with the regulation of Indonesian Minister of Manpower No. 10/2018,
regarding the procedures for the utilization of foreign manpower, employers intending to employ
expatriates must have a manpower utilization plan (RPTKA).
On that regulation, there is mentioned about two types of foreign employment visas available:
1. Limited stay permit or VITAS (Izin Tinggal Terbatas)
2. Permanent stay permit or KITAP (Kartu Izin Tinggal Tetap)
Accounts Limited Stay Permanent Stay
Period Valid for six months - twelve Valid for 5 years, extended
months, depends on the type of automatically by applying for
company’s industry. new card.
Eligible for Everyone - Foreigners with an

Indonesian spouse
- Foreign investors, directors
or commissioners in an
Indonesian Company (PT
PMA)
- Foreigners wanting to
retire in Indonesia
- Indonesians regaining
their citizenship
More about this can be found here.

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Employee Basic Rights

It’s true that wage is one of the employee rights, but there are more rights that entitled to the
employee as they are working in your organization. Employee rights are being regulated by the
Indonesian Labor Law No.13, 2003. Here are the basic employee rights you need to know when
building HR function:
Minimum Wage
Employees have the right to get the minimum basic wage that is regulated according to the
regions and industry sectors.
Salary components based on Circular Letter of Ministry of Manpower SE/07/MEN/1990 Year 1990
are:
01 Basic salary (Upah pokok)

The amount of money that is paid to workers according to the level or type of work
that is determined by the company’s agreement.
02 Fixed Allowance (Tunjangan Tetap)

A payment made regularly and given to the employee, that is paid together with the
basic salary. This allowance is any kind of allowances that are not related to
employee’s attendance or performance in the company.
03 Special Allowance (Tunjangan Tidak Tetap)

A payment made regularly and given to the employee, that is not mandatory to be
paid together with the basic salary. This allowance is any kind of allowances that are
related to employee’s attendance or performance in the company.
If the company decided to give additional payment in the form of performance bonus, please
note that: it can be done, but not mandatory. The component of performance bonus is defined by
the company. The company has the freedom to create its own bonus structure.

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Working Hours
Employees’ typical working hours are 40 hours/week. Based on Law, it can be categorized into:
a) 7 working hours in 1 day or 40 working hours in 1 week for 6 working days in 1 week.
b) 8 working hours in 1 day or 40 working hours in 1 week for 5 working days in 1 week.
If the employees work overtime, the employees have the right to receive overtime salary.
Overtime pay is calculated based on the employee's monthly salary (including fixed allowances)
and one hour of overtime is equal to 1/173 employee’s monthly salary.
Overtime pay is being differentiated by weekday and weekend calculation.
Period Working Time Overtime Pay Calculation
Weekday The first hour 1.5 x 1 hour pay rate 1 hour x 1,5 x 1/173 x
monthly salary
2 x 1 hour pay rate n hours x 2 x 1/173 x

The next hour monthly salary
Weekends/ Holiday The first 5 hours 2 x 1 hour pay rate n hours x 2 x 1/173 x
monthly salary
The 6th hour 3 x 1 hour pay rate 1 hours x 3 x 1/173 x

monthly salary
The 7th – 8th hour 4 x 1 hour pay rate 1 hours x 3 x 1/173 x

monthly salary

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Health and Social Security

Employees have the right to receive Social Security (BPJS Ketenagakerjaan -work accident
insurance, life insurance benefit, and old age benefit/pension) and Government Health-Care
Program (BPJS Kesehatan).
Social Security - BPJS Ketenagakerjaan
01
Occupational accident/work accident insurance, which is 0.24% – 1.74% of the
monthly salary, that must be paid entirely by the company.
02
Death benefit/life insurance, which is 0.3% of the monthly salary, that must be paid
entirely by the company.
03 Pension/old age insurance, which is 5.7% of the monthly salary, must be paid by both
the company (3.7%) and the employee (2%). This pension/old age insurance can be
withdrawn when the employees reach 55 years old or at any time after the
employees decide to quit working from the company.
Health Insurance (BPJS Kesehatan)
The health insurance for employees must be paid by both the employees and the employer. The
maximum amount of money that should be paid by the employer is 4% of the maximum salary of
IDR 4,000,000, and the minimum amount that should be paid by the employer is 1% of the
employee’s UMR (minimum regional wage).

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Religious Holiday Allowance (THR)

Employees have the right to receive religious holiday allowance (THR/Tunjangan Hari Raya) based
on the regulations.
Religious Holiday Allowance or Tunjangan Hari Raya (THR) is a yearly labour allowance regulated
by Indonesia Labor Law. THR applies to employees with a fixed-term employment contract (PKWT)
and a permanent employment contract (PKWTT) who have worked for the company 12 months
without stopping.
a) If the employee has worked for at least one month, she/he is eligible to receive the THR
proportionally.
b) THR allowance includes base salary and fixed monthly allowance, but does not have to
cover other payments such as bonus.
c) THR should be paid latest seven days before the beginning of religious holidays of
employee’s religion.
d) The consequence for you who not following the THR regulation is a penalty of 5% for the
delay THR payment.

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Sick and Annual Leave
Based on Indonesia Labor Law No.13 Year 2003, employees have the right to receive sick and
annual leave as follow:
Leave Type Period Remarks
Annual Leave 12 Days - Monthly-accrual

- This is the minimum, can be given more as
agreed between employer and employees
- Doesn’t vest until after 12 months of service,
unless there’s an exception agreement
between employer and employees
- Can’t be taken all at once, maximum 6 days
consecutively
Sick Leave No limit - It shouldn’t reduce the number of annual

leaves.
Note: - Have to give doctor’s note in each leave
A long-term paid request.
medical leave lasts - For the first four months, the employee is
for a period greater entitled to 100% of their pay. After that, it will
than one year. reduced by 25%.
Note:
For more details and T&C, you can check
Indonesian Labor Law Article 93 Section 3.
Maternity Leave 90 days - Usually taken prior delivery: 45 days and after
delivery: 45 days
Paternity Leave 3 days
Menstrual Leave 2 days/ cycle - Is given on first day and second day of period
cycle
Marriage Leave 3 days
Child’s Baptism 2 days
Son’s Circumcision 2 days
Compassionate 1 days Depends on the company’s policy

leave

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Individual Income Tax (PPh 21) for Employee
Income Tax 21 (PPh 21) is a type of tax that is imposed on income in the form of salaries, wages,
honorariums, benefits and other payments received by employees, not employees, former
employees, severance recipients and others.
Not only fixed-term or permanent employee, someone who receives an income of more than Rp
450,000 per day, which applies to part-time workers or freelance who receive daily wages, weekly
wages, unit wages or piece rates, would be subject to PPh 21. But the tax does not apply to the
individual who has the cumulative income received in one calendar month less than Rp 4,500,000.
In addition to the basic imposition and deduction that you can find in the regulation of the
Director General of Taxation PER-32/PJ/2015, the calculation of PPh 21 is also based on
Non-Taxable Income (PTKP).

Talent Engagement
Essentials

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What is Talent Engagement?

The definition of talent engagement can be varied. We can search these terms on the internet
and we can get a lot of definitions.
To sum it up, when we talk about “engagement”, it’s more than just “making our employees
happy”. Engaging talent means that when an employee resonates the values of the company,
and that there is an alignment there - reason as to why they are embodied effortlessly, creating a
more productive and motivated workforce. We, as employers, are supposed to make our
employees turn up to work enthusiastically, no complaints on doing their day-to-day tasks, and
able to give their best dedication to achieve the company’s goals and objectives.
To engage the employees, the employer should show and give support and provide the needs of
the employees, so they don’t have to worry about anything that will distract their work.
“
An engaged employee cares about their work and about the performance of the
company, and they want to feel that their efforts could make a difference. It is “
generally seen as an internal state of mind; physically, mentally and emotionally
that binds together the work effort, commitment and satisfaction in an employee.
(6q.io)

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The Importance of Talent

Management
When employees are engaged, it will lead to good performance and productivity. When
employees are productive, they’ll be able to deliver their best services to customers/clients.
Essentially, it will also affect to the business growth and causes positive impacts on the overall
company's performance.
Engagement initiatives in the office can not be happening without the collaboration between both
employer and employees. Trust, compassion, and communication are the three key points on
making things happen.

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What Kind of Program Can We Do?

Engaging through activities Recognizing effort/ Caring about the well-being
achievement and development
Work on engaging Thank you cards/ emails sent Mental-health campaign,

on-boarding program for new by team leaders. providing counselling
hires. programs for employees.
Celebrating employees’ Distribute non-cash rewards. Creating office communities

birthday/ important events that support employees’
(wedding, childbirth, etc.). hobbies and well-being.
Scheduled events: team days, Improving leave policy,

team dinner, etc. compensation, and benefits.

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Study Case:
Zen Rooms
ZEN Rooms is a hospitality company, a budget hotel franchise, that was founded in 2015. Currently,
the company is operating in 4 core countries and is now the largest hotel franchise by room count
in the Philippines.
ZEN Rooms was built together from humble beginnings to now a large organization, with the great
people who always improve and encourage purposeful changes. The company is recognized as
the #1 economy chain by Customer Satisfaction by Booking.com and these are made possible all
thanks to the hard work and entrepreneurial spirit of the employees.
Due to COVID-19, ZEN Rooms had issued Working From Home (WFH) policy to all employees since
March 2020. The company realized that the WFH setting could be hard for some employees, that’s
why they’re not only providing WFH infrastructure settings for employees so they can work
efficiently from home; but also, they periodically do employee surveys to check the well-being and
the support needed from the company.

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Study Case:
Zen Rooms
Starting small, ZEN Room’s engagement initiatives were circling to “fun things” such as game night
and Netflix parties that happened once in a while. The objective at that time was to entertain the
employees who had been working from home before COVID-19. On the other side, there are
campaigns about working from home tips and mental health that spread awareness about the
importance of managing mental stamina during self-quarantine and isolation.
However, after digging deeper into the root problems, the company realized that they should
provide more comprehensive support to the employees. That’s why the company decided to “
launch two initiatives:
1. An open door policy where people are encouraged to talk to fellow employees, even HR,
when dealing with all sorts of issues and concerns whether personal or professional, to help
them cope with the situation better and in turn, be at a better mindset at work
2. A partnership with a mental health organization to provide individual consultations with
psychologists and 24/7 emergency support.
These initiatives are welcomed enthusiastically by the employees as they feel understood and
supported. The company believes that creating a healthy environment, for body and mind, will
make the employees happier, focus on their day-to-day tasks, and be able to deliver the best
result.
Employees' engagement is not only circling on office events but also taking care of
the well-being of the people who run the company. When employees are engaged
and the company can support them wholeheartedly, it will reflect on the satisfaction
and productivity.

Global Concept of
Learning & Development

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Learning & Development Concept

One function in Human in Resources is to provide learning and development space, which will
develop, motivate, retain productively, and engaged employees. The goal of having learning and
development space is to create a high-performance, sustainable company by improving the
competencies of its manpower to make the strategic, operational goals, and objectives are met.
There are a lot of learning concepts that can be followed, but there is this one learning concept
that offers a simple way to explain how learning happens at work. Note that, learning is not only
about formal learning, but also any other forms of learning that will enhance the competencies of
the employees.
Let’s talk about the 70:20:10 learning concept. This concept is globally known by all talent
development practitioners, and many companies are using this concept to enrich the employee
experience. The 70:20:10 learning concept was developed by Morgan McCall, Robert Eichinger and
Michael Lombardo at the Center for Creative Leadership in North Carolina in the mid-1990s.

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Learning & Development Concept

What does it mean to do 70:20:10 in learning and development?
is informal learning processes: day-to-day workplace routines, watching
70%
peers/team leaders do the work, working on projects or other challenging
tasks. Learning occurs as people engage in informal learning processes such
as watching others, participating in workplace routines and undertaking
challenging tasks.
is for coaching and is for formal courses,
20% mentoring (with people

who are more senior/ 10% materials-reading, training,
workshop, etc.
experienced).
Based on the data above, you can organise learning and development activities through several
programs as follow:
Training and workshop (behavioural/ operational/ leadership, etc).
Mentoring and coaching.
Courses and materials-reading.
Project-based tasks, etc.

Performance Review
& Study Case

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Performance Review VS
Performance Management
Many of us sometimes get confused between performance management and review. What’s the
difference? Well,
Performance Management is the whole work system which defines the

interactions between employer and employees as the learning opportunities;
it’s a complex system that circled performance, progress, and outcome.
Performance Review is one part of performance management.
“ “Performance management is the process of creating a work

environment or setting in which people are enabled to perform to “
the best of their abilities.”
(thebalancecareers.com)
A performance review can also be called as performance appraisal or performance evaluation. It

is the process of assessing, evaluating, and getting feedback on employees’ performance.
A performance review is important to do in the company because it’s not only to review
employees’ contribution on achieving the company’s goal, but also letting the employees’ know
their strengths, weaknesses, development, potential, and progress. Again, it’s the opportunity for
both sides to learn from each other.

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How to Measure Employee

Performance?
Basic things to be covered on performance review:
Goals Accomplishment Communication Teamwork

Skill
Leadership Culture fit

Qualities
Here are the common ways of assessing and evaluating employees’ performance:
01 Key Performance Indicators (KPI) or Objectives Key Result (OKR) evaluation

This is the very common activity used to review the employees’ performance. KPI/ OKR review can
be done by reviewing the initial target agreed at the beginning of the set period compared with
the achieved result at the end of the period.
02 360-degree feedback
Retrieving opinions, feedback, and assessments of the employee from the people who work in
their cycle, such as a direct report, peers, and team members.
Next step

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How to Measure Employee

Performance?
03 Self-evaluation
Asking the employees to answer the questions provided by the company. As the evaluator, HR can
compare the employee's evaluation report with the ones we have. This can help us in checking the
self-awareness and self-confidence of the employees.
Besides KPI or OKR, 360-degree feedback, and self-evaluation, to assess and

evaluate employees can also be done through formal one-on-one conversation,
meeting with the whole team involved or casual team leader-member talks. It would
be better if you can do it regularly as often as doing it, instead of doing it only
quarterly or annually.

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Study Case: HubSpot

HubSpot is a company that develops a cloud-based marketing and sales software platform. This
company is voted to be the #1 best place to work in 2020 in GlassDoor.
To quote from axerosolutions.com on their article “22 Surefire Ways to Increase Employee
Engagement”. In 2012, HubSpot decided to do away with the annual performance review in favour
of real-time continuous social performance management by using website/ software that will let
them give feedback to other employees, anytime. The technology that they use is also able to let
their employees tracking the progress of their goals on-line and share the results. Isn’t it amazing?
Well, for some people, they may think that it’s a bit scary to be “reviewed” by everyone in the
company, but for Hubspot itself, they believe that more frequent feedback will help the employees
to self-reflect, learn, and progress faster, continuously.

Employer Branding:
Start Small

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Employer Branding: Start Small

Employer brand is the perceived quality of the employment experience you offer. It will represent
the first impression that prospective candidates/ new hires have. The perceived quality is not only
going to last until the employee’s first day, but it can last beyond after they joined for a long time
as well. That’s why branding is important to a company, not only for early impression but also
life-long impression.
How is your company being represented on social media?

How does your company engage the audience on the company’s pages?
Social media platforms are essential to be made for your company’s pages because it will help
your company in building brand credibility. To be able to create more pages will result in more
audience engagement because people have different preferences on their favourite social media.

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Employer Branding: Start Small

For the starter, don’t have the mindset that building employer branding is complicated. You can
start with simple things:
Create exciting job desc
Showcase internal events
Showcase employees' stories on the company's page
Partnership with other companies to boost branding

(event collaboration, strategic partnerships, etc.)
We can also do employer branding through employees’ social media pages. We can encourage
our employees to start showcasing life at your company or simply asking them to be active in
sharing/ liking the latest company’s posts and updates to their network.
Learn exclusively about employer branding in Glints free ebook:
https://bit.ly/GlintsEbookEmployerBranding

HR Practitioner
Opinion

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HR Practitioner Opinion
“ Startup relies on a flexible business culture which are dynamic and

fast-paced. This can be challenging if the company doesn’t put
attention on the people inside.
Unstructured HR will do more harm than good. It can negatively affect

on how the people work and the work environment itself.
Structured HR doesn’t have to be complicated, it’s all about doing it

RIGHT. Doing it right will affect on a strong HR function which resulted
on the growth of the people and the business.
“
Dio Anamia
Talent Management Enthusiast

Reference

employers.glints.id
Reference
“ANZ Insights: Healthy People, Healthy Organizations.”
https://info.tcs.com/anz-insights-healthy-people-healthy-organisations.html. Accessed 24 July,
2020.
“Direktorat Jenderal Pajak: Index Karyawan.”

https://www.pajak.go.id/id/index-karyawan. Accessed 10 July, 2020.
“Employee Engagement Programs.”

https://axerosolutions.com/employee-engagement/employee-engagement-programs.
Accessed 24 July, 2020.
“Employer Branding.”
https://business.linkedin.com/talent-solutions/blog/employer-brand/2018/employer-branding
Accessed 2 June, 2020.
“HubSpot.”
https://craft.co/hubspot . Accessed 24 July, 2020.
“Performance Management.”
https://www.thebalancecareers.com/performance-management-1918226. Accessed 20 July,
2020.
“Planting the Seeds for a 70:20:10 Learning Model E-book.”

http://www.sproutlabs.com.au/elearning/planting-the-seeds-for-a-702010-learning-model-ebo
ok/. Accessed 20 July, 2020.
“Religious Holiday Allowances Indonesia Still Obligatory Despite COVID-19.”

https://www.aseanbriefing.com/news/religious-holiday-allowances-indonesia-still-obligatory-d
espite-covid-19/. Accessed 5 August, 2020.
“Talent Development System.”

https://humanresources.ku.edu/talent-development#:~:text=Talent%20Development%2C%20or%2
0MyTalent%2C%20is,and%20operational%20goals%20and%20objectives. Accessed 17 June, 2020.
“The Definition of Employee Engagement.”

https://inside.6q.io/the-definition-of-employee-engagement/. Accessed 21 July, 2020.

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Glints Employer Solutions

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Building HR

employers.glints.id Copyright © 2020 Glints Global. All rights reserved.

01 People Strategy: Talent Planning

03 Recruitment Life Cycle Process

15 Talent Engagement Essentials

21 Global Concept of Learning & Development

24 Performance Review and Study Case

29 Employer Branding: Start Small

Glints is one of the fastest

Find out more of our services

TRUSTED BY LEADING COMPANIES

Building HR Function for Your Startup I

Building HR Function for Your Startup II

“ Human Resources is not a thing

Building HR Function for Your Startup III

Building HR Function for Your Startup 1

What is Talent Planning?

To create a talent plan, you can start by following these steps:

01 Identify the current manpower’s skills

Building HR Function for Your Startup 2

Building HR Function for Your Startup 3

The Importance of Recruitment

Building HR Function for Your Startup 4

Building HR Function for Your Startup 5

The role of HR administration is responsible to ensure that the

Building HR Function for Your Startup 6

Employment Contract for

Differentiation between both contracts are shown in the table below:

Accounts Fixed-term employment contract Permanent employment contract

Period of contract Limited time period. No limited time (unless the

Severance Pay If the termination of contract is Employer needs to pay for

If the termination of contract is

Probation No probation period. Probation period is allowed.

Agreement Need to be written, in Latin Can be written or spoken (no

Employment Employment of employee needs to It’s not mandatory to register the

Building HR Function for Your Startup 7

Employment Contract for

Accounts Limited Stay Permanent Stay

Eligible for Everyone - Foreigners with an

More about this can be found here.

Building HR Function for Your Startup 8

Employee Basic Rights

01 Basic salary (Upah pokok)

02 Fixed Allowance (Tunjangan Tetap)

03 Special Allowance (Tunjangan Tidak Tetap)

Building HR Function for Your Startup 9

Employee Basic Rights

Overtime pay is being differentiated by weekday and weekend calculation.

Period Working Time Overtime Pay Calculation

2 x 1 hour pay rate n hours x 2 x 1/173 x

The 6th hour 3 x 1 hour pay rate 1 hours x 3 x 1/173 x

The 7th – 8th hour 4 x 1 hour pay rate 1 hours x 3 x 1/173 x

Building HR Function for Your Startup 10

Employee Basic Rights

Health and Social Security

Social Security - BPJS Ketenagakerjaan

Health Insurance (BPJS Kesehatan)

Building HR Function for Your Startup 11

Employee Basic Rights

Religious Holiday Allowance (THR)

Building HR Function for Your Startup 12

Employee Basic Rights

Leave Type Period Remarks