How Income Tax Works in Indonesia
Indonesia taxes salaries as PPh 21 under the UU HPP law. Three things shrink your taxable income before the brackets apply: BPJS contributions, the biaya jabatan position-expense deduction (5% of gross, max Rp 500K/month), and your PTKP non-taxable allowance.
The PPh 21 brackets (annual)
| Annual taxable income (IDR) | Rate |
|---|---|
| Up to 60,000,000 | 5% |
| 60,000,001 – 250,000,000 | 15% |
| 250,000,001 – 500,000,000 | 25% |
| 500,000,001 – 5,000,000,000 | 30% |
| Above 5,000,000,000 | 35% |
PTKP allowances (per year)
Single: Rp 54M · Married: +Rp 4.5M · Each dependant (max 3): +Rp 4.5M.
Worked example
Monthly salary of Rp 15,000,000 (single): BPJS ≈ Rp 530,863/mo → Rp 6.37M/yr. Biaya jabatan Rp 6M. Taxable = 180M − 6.37M − 6M − 54M = Rp 113.63M. PPh 21 = 3M + 15% × 53.63M ≈ Rp 11.04M/year (≈Rp 920K/month).
BPJS — the 4% employee total
1% health (capped Rp 12M/mo) + 2% old-age savings (JHT) + 1% pension (JP). Unemployment insurance (JKP) is fully government-funded — 0% from you.
Try it: Indonesia salary calculator →
Sources: Directorate General of Taxes (pajak.go.id), PwC Pocket Tax Book 2026. Estimate only — not tax advice.