Indonesia

Calculation for Termination Payment

(Applicable only to termination of permanent employees)
Long
Reason for Termination of Severance Compensation of
No. Service Separation Payment (“Uang Pisah”)
Employment Payment Rights
Payment
1. Change of company’s status, 2x 1x 1x Not regulated
merger or consolidation of the
company; and the employer
refuses to continue the
employment (Article 163,
paragraph 2)
2. Company closure for efficiency 2x 1x 1x Not regulated
measures, not for financial
reasons or force majeure (Article
164, paragraph 2)
3. Employee’s death (Article 166) 2x 1x 1x Not regulated
4. Employee reaching pension age - 2x 1x 1x Not regulated
if the employer has not enrolled
the employee in a pension plan
(Article 167, paragraph 5)
5. Employee’s self-termination – if 2x 1x 1x Not regulated
employee’s allegation is proven
(Article 169, paragraphs 1 and 2)
6. Employee’s violation of 1x 1x 1x Not regulated
employment agreement, company
regulations or collective labor
agreement (after 3 consecutive
warning letters) (Article 161,
paragraphs 1 and 3)
 Long
Reason for Termination of Severance Compensation of
No. Service Separation Payment (“Uang Pisah”)
Employment Payment Rights
Payment
7. Change of company’s status, 1x 1x 1x Not regulated
ownership and merger or
consolidation of the company;
and the employee refuses to
continue the employment (Article
163, paragraph 1)
8. Company closure for financial 1x 1x 1x Not regulated
reasons or force majeure (Article
164, paragraph 1)
9. Company’s bankruptcy (Article 1x 1x 1x Not regulated
165)
10. Employee’s major mistake None None 1x Yes, if the employee’s duties and functions do
(Article 158, paragraphs 1, 3 and not directly represent the company’s interests.
4) The amount and implementation depends on the
provisions under the employment agreement,
company regulations or collective labor
agreement.
11. Resignation (Article 162, None None 1x Yes, if the employee’s duties and functions do
paragraph 2) not directly represent the company’s interests.
The amount and implementation depends on the
provisions under the employment agreement,
company regulations or collective labor
agreement.
12. Employee’s absence without None None 1x Yes, if the employee’s duties and functions do
leave (Article 168, paragraph 3) not directly represent the company’s interests.
The amount and implementation depends on the
provisions under the employment agreement,
company regulations or collective labor
agreement.
 Long
Reason for Termination of Severance Compensation of
No. Service Separation Payment (“Uang Pisah”)
Employment Payment Rights
Payment
13. The employee is arrested by the None 1x 1x Not Regulated
authorities due to allegedly
committing a criminal action which
is not based on a report by the
employer and:
(a) (after 6 months) the
employee has not been able
to carry out his/her work
accordingly due to the
criminal proceedings (Article
160, paragraphs 1 and 3), or
(b) (before the end of 6 months
period) the employee has
been declared guilty by the
court (Article 160,
paragraphs 1 and 5)
14. Employee reaching pension age - None None 1x Not regulated
if the employer enrolls the
employee in a pension plan 38
(Article 167, paragraph 1)1
15. Employee’s self-termination – if None None 1x Not regulated
employee’s allegation is not
proven (Article 169, paragraphs 1
and 3)

1 Law 13, Articles 167(1) and 167(2) stipulate that (i) if the employer has enrolled the employee in a pension plan the premium of which are fully paid by the
employer, the employee shall not be entitled to receive severance pay, long service pay, but is entitled to receive compensation of rights; and (ii) in the event the
amount of the pension benefit that is received in lump sum payment is less than the amount of 2 x severance. 1 x long service and 1 time compensation of rights,
then the difference of this amount shall be paid.
 Long
Reason for Termination of Severance Compensation of
No. Service Separation Payment (“Uang Pisah”)
Employment Payment Rights
Payment
16. The employee’s self termination 2x 2x 1x Not regulated
due to his/her continuing illness
after the lapse of 12 months
(Article 172)