Loads of international employers plan to hire employees from Bali, and there’s no wonder why. These employees are incredibly valuable to companies that have set their sights on goals like expanding into new markets, reducing their human resources costs, or creating new strategic partnerships overseas. They are also proficient in a wide variety of business functions and industries and can act as chameleons to bring you tailored results. 

As enticing as the Balinese talent pool is, we never encourage businesses to rush into an international hiring situation. For the best results, it’s best to go in with your eyes wide open and with the information you need to be successful as an employer. And we intend to help in that regard by sharing must-know information about employee benefits in Bali. 

Read on because, in this employee benefits guide, we’ll share critical information about mandatory and supplemental benefits and perks, Bali employment laws, and how to put together an amazing benefit package. 

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Bali Employment Laws

Given that Bali is a province of Indonesia, many of the most influential laws come from the Indonesian government. Here are the main labor laws currently in effect: 

  • Law No. 21 of 2000 on Labor Union
  • Law No. 2 of 2004 on Industrial Relations Dispute Settlement
  • Labor Law of 2003 on Manpower

These three laws, and many others, are in place to impart structure and fairness to employment relationships in Bali (and the whole of Indonesia). To get a firm knowledge base on the laws in Bali, you’ll reference these laws.

But remember that there are many other laws and regulations covering specific employment areas and situations. So long as you’re getting your information from a reputable source (government sources, trusted law firm, or information database), you can rest reasonably assured that you’re getting the right information. 

Mandatory Employee Benefits in Bali 

Now that we’ve gone over the labor laws in Bali, it’s time to dive into mandatory employee benefits in Bali. The regulations we mention below are statutory, meaning that employers absolutely must provide the benefit(s) to employees or risk legal action. 

Minimum Wage

The minimum wage in Bali in 2024 was 2,813,672 rupiah (US $180). This wage minimum applies to all workers in the province. This rate stands to increase, so check with Balinese authorities regularly to ensure ongoing compliance. 

Working Hours and Overtime

Per law, working hours for the Province of Bali shouldn’t surpass 40 hours per week over 5 or 6 days. But if it must, it’s considered overtime. And any overtime hours should be paid at 150% of the worker’s regular salary.  

Social Security

Every employer hiring Balinese employees must set up and fund social security for them; it’s the workers’ right. In Indonesia, social security is a safety net for the following: 

  • Healthcare
  • Life insurance 
  • Pension
  • Old-Age benefits
  • Accident insurance

Here’s a table showing how much employers have to contribute to the Social Security scheme: 

Social Security AreaEmployer Contribution Percentage*
Accident Insurance0.24 – 1.74%
Life Insurance0.3%
Pension Plan2%
Old Age Benefits3.7%
Healthcare4%
Total Contribution Amount10.24% – 11.74%

*The employer contribution is a percentage of the employee’s monthly salary. 

The employee contributes 4% of their salary to social security, and it should be withheld from their paychecks by the employer. 

Balinese employees get a minimum of 12 days of annual leave every year. It accrues at 1 leave day per 23 days worked. Six days of the leave must be taken consecutively, and the rest can be taken however the employee wishes. To qualify for this leave, the employee must have worked for the current employer for a year. This is according to the Manpower law.

In Bali and all of Indonesia, there are quite a few public holidays. And employees shouldn’t have to work on any of them. They should receive their normal pay for each of the following holidays: 

  • January 1 – New Year
  • January 27 – Isra Mi’raj of the Prophet Muhammad SAW
  • January 29 – Chinese New Year 2576 Kongzili
  • March 29 – Silence Day (Saka New Year of 1947)
  • March 31–April 1 – Eid al-Fitr 1446 Hijri
  • April 18 – Good Friday
  • April 20 – Easter
  • May 1 – International Labor Day
  • May 12 – Vesak Day 2569 BE
  • May 29 – Ascension Day of Jesus Christ
  • June 1 – Pancasila Day
  • June 6 – Eid al-Adha 1446 Hijri
  • June 27 – Islamic New Year 1 Muharram 1447 Hijri
  • August 17 – Proclamation Day
  • September 5 – Mawlid of Prophet Muhammad SAW
  • December 25 – Christmas

Should an employee fall ill, they are entitled to take paid sick leave. There’s no set sick leave limit for employees, but the longer the employee is on leave, the lower their sick leave benefits are: 

  • The first 4 months are paid at the full salary amount
  •  Months 4 through 8 are paid at 75% of the salary
  •  Months 8 through 12 are paid at half the salary
  •  The 12th month and beyond are paid at 25% of the salary

The employer has to foot the bill for sick leave –  it’s not paid by the government. In order for sick leave to apply, the employee will have to bring in a doctor’s note to the employer. 

Maternity Leave

Per Indonesian labor laws (Law No. 13 of 2003 on Manpower and the Mother and Child Bill), employees are entitled to substantial maternity leave benefits. They get to take 1.5 months of leave before giving birth and 3 months of leave after the baby is born. In certain cases, the baby may be born with issues: in these cases, the leave may be extended to 6 months with a note from a medical professional stating the issue with the newborn.

Paternity Leave

Mail workers who expect to become fathers should be able to take 2 days of paternity leave. In certain situations, that leave duration may be extended for a total of five days of paternity leave. If the woman miscarries, the leave amount is 2 days with no possibility of extension.

Religious Holiday Allowance

Indonesia is home to a very diverse melting pot of people. Since that’s the case, the government has made substantial concessions for people who practice a particular religion, and it’s done through bonuses. In Indonesia, there is a non-negotiable religious holiday allowance (also called THR). Under this requirement, employees have to pay a bonus to each employee every year. 

Each bonus is for a specific religious holiday – Christmas for Christians, for example. The payment should be made in a lump sum at least a week before the employee celebrates the holiday. Not all holidays are recognized by the government of Indonesia; they include: 

  • Catholics and Protestants – Christmas
  • Hindus – Nyepi
  • Muslims – Eid-il-Fitr
  • Confucianists – Chinese New Year
  • Buddhists – Vesak

Severance Pay

Severance pay, compensation of rights, and long service pay are three benefits employers must legally provide to workers under certain circumstances. Here’s a little more about each of these benefits: 

  • Severance pay – For every year an employee works for your company, they get one month’s salary in severance pay. There’s a max of 9 months’ salary for 8 years of service. Table 3 in this International Labour Organization guide shows the severance pay entitlements. 
  • Compensation of rights – This is payment for the cost of relocation, unused annual leave, housing, and medical allowances (15% of severance pay plus long-service pay), in addition to payments promised in any contract agreements. 
  • Long-service pay – This is a payment an employee gets at the time of termination for working for the company longer than three years. It’s like an additional thank-you bonus for the time spent at the company. See the “Long Service Payment in Indonesia” table in this ASEAN Briefing article for a layout of the payment amounts. 

Supplementary Employee Benefits in Bali

Supplemental employee benefits in Bali focus on making life easier and more fulfilling for your workers. When you offer these additional perks, employees not only appreciate it but are encouraged to do their best work. Plus, you’ll spend less time and money trying to find the right candidates. Here are some non-mandatory benefits to consider including in your benefits package for Balinese workers:

  • Longer leaves for maternity, paternity, sickness, etc. 
  • Heftier severance payments. 
  • Bonuses for good performance. 
  • Employee of the month designation and perks. 
  • Free or reduced-cost lunches. 
  • Discounted company merchandise or services. 
  • Stipends for car or bike maintenance, or a company car. 
  • Relocation assistance for employees who are moving for the job. 
  • Remote work opportunities on a weekly basis. 
  • Private health insurance with outstanding benefits (vision and dental as well) 

These supplemental benefits are not required by any means, but if you want to offer them, you absolutely can. 

How to Build a Solid Employee Benefits Plan for Balinese Employees

As for building your employee benefits plan, we urge you to follow the below steps: 

  • Research the laws in Bali for yourself – with legal assistance as needed.  You need a good overall understanding of the employer/employee relationship before working with Balinese employees. 
  • Note the mandatory benefits that you’ll be offering to your employees. If you’re unsure about any of these benefits, don’t hesitate to reach out for help. Failing to provide these benefits isn’t good for your workers or your business. 
  • Explore your supplemental benefit options and choose one or more to offer workers. If it’s not in the budget, don’t worry about it. But if you can give workers a little extra, that could only help you and your workers. 
  • Create your benefit package document and fill it with the mandatory and supplementary benefits you intend to provide. Be sure to use plain, easy-to-understand language without excessive jargon. And choose a format that doesn’t trick the eye.
  • Finalize and distribute the document as needed. 
  • Update the benefits package on the fly. Bali’s labor laws change over time. 

So, there you have it – everything you need to know about employee benefits in Bali. We hope you found all the information you were looking for in this employee benefit guide, and we wish you the best as you scope out talent in beautiful Bali.