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Commentary

8.1 Failure to meet employer payroll obligations

Indonesia

8.1ÌýÌýÌýÌý Failure to meet employer payroll obligations

Employers that do not fulfil social security and tax obligations in accordance with applicable regulations may be subject to administrative and criminal sanctions.

Employers that fail to register their employees for the social security programmes will be ineligible to receive certain services from the government, including the registration of business licences, licences to hire foreign employees, and building permits.

Note that an individual who fails to register with the social security programmes will be unable to obtain a driver's licence, land certificate, vehicle ownership certificate or a passport.

Healthcare Social Security Body

The administrative sanctions for employers are in the form of warnings and fines carried out by Healthcare Social Security Body. However, sanctions for not receiving certain public services regarding licensing are carried out by the government or local governments at the request of the Healthcare Social Security Body.

A written warning is given a maximum of two times each for a maximum period of ten working

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Web page updated on 17 Mar 2025 15:48