Sick Leave in Indonesia: Manpower Law Wage Scale for Prolonged Illness

Indonesia’s sick leave law requires employers to pay wages during illness for up to 4 months under the Manpower Law (Undang-Undang Ketenagakerjaan). The pay rate decreases over time — 100% for the first 4 months, 75% for months 5–8, and 50% for months 9–12. BPJS Kesehatan (the national health insurance) covers medical treatment costs.

Key Takeaways

• Employers pay 100% of wages for the first 4 months of illness
• The rate drops to 75% for months 5–8 and 50% for months 9–12
• A medical certificate from a government doctor is required from day 1
• BPJS Kesehatan covers medical treatment costs during sick leave
• After 12 months, the employer may terminate the employment with severance

Indonesia’s Sick Leave Entitlement

Indonesia’s sick leave system is governed by the Manpower Law (UU No. 13/2003, now UU No. 6/2023 — the Job Creation Law). When an employee falls ill and is certified by a doctor, the employer must pay wages during the period of incapacity.

The entitlement is structured as a declining scale over 12 months. This is one of the most generous employer-funded sick leave regimes in Southeast Asia. BPJS Kesehatan covers the medical treatment costs, but the employer bears the wage cost.

For workplace accidents, the employer pays 100% of wages for the first year, and JKK (Work Accident Insurance) covers medical costs.

Who Pays for Sick Leave?

Period	Pay Rate	Who Pays
Months 1–4	100% of wages	Employer
Months 5–8	75% of wages	Employer
Months 9–12	50% of wages	Employer
Medical treatment	Covered by BPJS Kesehatan	BPJS

Sick Leave Pay Rates

Period	Pay Rate	Source
Months 1–4	100% of wages	Manpower Law Art. 93
Months 5–8	75% of wages	Manpower Law Art. 93
Months 9–12	50% of wages	Manpower Law Art. 93
Workplace accident (12 months)	100% of wages	Manpower Law Art. 93

The wages used for calculation are the employee’s full wages, including basic salary and regular allowances.

Medical Certificate Requirements

Indonesia requires a medical certificate from a government-appointed doctor (dokter umum atau dokter spesialis) from the first day of illness.

The certificate must specify:

• The date of examination
• The expected duration of incapacity
• The diagnosis
• Whether the employee can leave home

The employee must present the certificate to the employer. For BPJS claims, the certificate must be from a BPJS-designated healthcare facility.

How to Calculate Sick Pay in Indonesia

Example: An employee earning IDR 8,000,000/month is off sick for 6 months.

1. Months 1–4: IDR 8,000,000 × 4 = IDR 32,000,000
2. Months 5–6: IDR 8,000,000 × 0.75 × 2 = IDR 12,000,000

Total paid to employee: IDR 32,000,000 + IDR 12,000,000 = IDR 44,000,000

The employee would have earned IDR 48,000,000 for this period, so the sick pay covers approximately 91.7% of normal income.

The 12-Month Termination Rule

If the employee is unable to work for more than 12 months continuously, the employer may terminate the employment with severance pay:

• The employer must provide written notice 1 month before termination
• The employee is entitled to severance pay based on length of service
• The termination must follow the procedure in the Manpower Law
• The employer cannot terminate without first attempting rehabilitation

Employer Obligations and Penalties

Indonesian employers must:

• Pay wages during sick leave as prescribed by the Manpower Law
• Register employees with BPJS Kesehatan and BPJS Ketenagakerjaan
• Maintain medical certificates on file
• Cooperate with BPJS for medical claims
• Maintain records for at least 5 years after the employee leaves

Non-compliance can result in fines from the Ministry of Manpower (Kementerian Ketenagakerjaan) and potential labour court proceedings.

Comparison With Other Countries

Country	Sick Days	Pay	Certificate Required
Indonesia	Up to 12 months employer	100%→75%→50%	Day 1
UK	28 weeks SSP	£116.75/week	Day 7
Australia	10 days personal/carer’s leave	Full rate	2+ consecutive days
US	Varies by state	Varies	Employer policy

FAQ

Why does the pay rate decrease over time in Indonesia?

The decreasing pay scale is designed to balance employee protection with employer sustainability. The 100% rate for the first 4 months provides strong protection during the acute phase, while the 75% and 50% rates in months 5–12 acknowledge the financial burden on employers during prolonged absence.

Can the employer terminate after 12 months?

Yes, but only after following the prescribed procedure. The employer must provide 1 month’s written notice and pay severance based on length of service. The employer cannot terminate without first attempting rehabilitation and exhausting the 12-month period.

What does BPJS Kesehatan cover?

BPJS Kesehatan covers the medical treatment costs during sick leave, including doctor visits, hospital stays, medication, and medical procedures. It does not cover the employee’s wages — that is the employer’s responsibility.