RainTech LogoRainTech
PricingResourcesAbout
RainTech LogoRainTech

Southeast Asian tech talent, globally competitive.

Services

  • Talent Sourcing
  • Employer of Record
  • Payroll Management

Company

  • About
  • Resources
  • Careers

Legal

  • Privacy Policy
  • Terms of Service

© 2025 RainTech. All rights reserved.

RainTech LogoRainTech
PricingResourcesAbout
Back to Resources
Market Insight and Trends

Indonesia Remote Team: 2026 HR & Payroll Compliance Guide

Managing remote teams in Indonesia for 2026? Use this essential 5-step checklist to streamline HR operations, secure BPJS compliance, and master PPh 21 taxes. Stay competitive and avoid legal risks effortlessly.

Tenia Novalia
24-12-2025
4 mins
Chalkboard illustration for Indonesian HR and payroll compliance featuring icons for labor laws, tax regulations, BPJS policies, and transparency.

Starting a new year is the perfect time for founders and HR leaders to "reset" HR and payroll operations, especially when teams are fully remote and spread across Indonesia.

Payroll in 2026 is not only about paying on time, but also staying aligned with evolving rules on income tax, BPJS, and mandatory benefits so your Indonesian tech talent doesn't quietly leave for a more compliant, better-run employer.

A clear checklist plus a reliable local partner lets you focus on product and growth instead of firefighting payroll issues every month.

What This New Year Checklist Means for Indonesia Remote Teams

For Indonesian remote employees, a new year HR and payroll checklist is a structured review of contracts, tax and BPJS compliance, salary structure, and HR processes.

The goal is to eliminate legal blind spots, prevent errors in 2026, and keep your remote team confident that everything from payslips to benefits is handled correctly.

For foreign founders hiring in Indonesia, it also doubles as a way to verify that your internal HR or EOR partner is truly operating in line with local regulations.

1.Refresh Employment Contracts and Engagement Models

Before touching payroll numbers, make sure each remote worker's legal status and documentation are crystal clear.

A quick contract audit should confirm whether each Indonesian team member is a direct employee, contractor, or hired via EOR, and that this matches how you actually manage them day-to-day. Contracts need to spell out wages, working hours, leave, and benefits to satisfy labor law and to avoid disputes later.

If you are using EOR, request the latest standard contract and cross-check that statutory elements like BPJS, paid leave, and THR are covered, not just verbally promised.

2.Clean Up Employee Data and Payroll Cycles

Once the "paperwork backbone" is solid, the next priority is data and how money flows every month.

At the start of the year, verify core employee data: NPWP, address, family/dependent status, and back details, as these drive correct PPh 21 calculations and, in some cases, which regional minimum wage applies.

Reconfirm your payroll calendar-cut-off dates, pay dates, and deadlines for tax and BPJS submissions, so you don't miss statutory due dates and incur penalties.

Use a system that supports payments in Indonesian Rupiah to local bank accounts while still letting you report costs in your home currency at group level.

3.Double Check Tax (PPh 21) and BPJS Compliance

Tax and social security are where most foreign employers in Indonesia run into trouble if they don't prepare properly.

Your checklist should confirm that all eligible employees are registered with BPJS Kesehatan and BPJS Ketenagakerjaan, and that contributions are calculated on the right wage base and paid on time.

On the tax side, make sure PPh 21 withholding uses current brackets and updated PTKP for each employee, and that monthly and annual filings are submitted within official deadlines.

Many foreign companies choose an EOR or local payroll provider so these obligations are automated and properly documented for audit and due diligence.

4.Align Salaries and Benefits with Indonesia Market Reality

Compliance keeps you out of trouble, but competitiveness keeps your best engineers from leaving.

Use up-to-date Indonesia salary and benefits guides to benchmark your core roles and plan any necessary adjustment during your annual review cycle. Reassess remote-friendly perks like internet and equipment allowances, and consider topping up BPJS with private health coverage if you are targeting senior or niche tech talent.

At the same time, quantify the cost advantage you gain by hiring in Indonesia versus other markets to ensure your compensation strategy still reflects a smart balance between savings and retention.

5.Modernize Payroll Operations and HR Communication

Finally, a good checklist turns into real value only when your systems and communication keep up.

If you are still juggling spreadsheets and manual payslips, evaluate whether your current tools can handle multi-role setups, digital payslips, and clean reporting for finance and audits.

Many teams now combine payroll, HR administration, and EOR under one provider so there is no gap between what is written in contracts and what is executed in payroll each month.

Turn your checklist into a simple "new year HR memo" for employees, summarizing any policy or benefit updates and pointing them to a clear contact person when they have HR or payroll questions.

Start 2026 With A Compliant, Low-Friction Payroll Setup

If you want to enter 2026 without payroll surprises, miscalculated PPh 21, or BPJS headaches for your Indonesian remote team, this is the time to get everything in order.

RainTech helps global companies manage payroll, compliance, and EOR for remote and hybrid teams in Indonesia so founders and HR leaders can stay focused on strategy and product.

Reach out to RainTech today to review your current HR and payroll setup and explore the most efficient options, from streamlined payroll management to a full Employer of Record solution tailored for Indonesia.

To go deeper on remote hiring, compliance and cost savings in Indonesia, start with these RainTech resources that expand on the checklist above:

  • How RainTech Solves Tech Talent Shortage by Hiring Remote Teams in Indonesia
  • Building Successful Remote Teams in Indonesia: Trends, Challenges, and Solutions
  • 5 Essential Legal Compliance Areas in Indonesia & How RainTech's EOR Protects Your Business
  • Maximizing Cost Savings and Business Impact Through Remote Hiring in Indonesia
  • How to Automate HR in APAC Without Losing Your Human Touch in 2025

References:

  1. Glints Talent Hub, Payroll Compliance Checklist for Indonesian Employers: Essential Guide for Employers
  2. Remote People, Indonesia Payroll and Income Tax Guide
  3. People Managing People, Indonesia Employee Benefits: Employer Guide 2025

Share this article:

Recent Posts

From Months to Weeks: Time to Hire in Indonesia

30-12-2025

Indonesia Public Holidays and Collective Leave Days 2026: A Planning Guide for Global Remote Teams

29-12-2025

Indonesia Remote Team: 2026 HR & Payroll Compliance Guide

24-12-2025

Ready to get started?

Ready to get started?

Whether you're looking to hire or join a global team, we're here to help.

RainTech LogoRainTech

Southeast Asian tech talent, globally competitive.

Services

  • Talent Sourcing
  • Employer of Record
  • Payroll Management

Company

  • About
  • Resources
  • Careers

Legal

  • Privacy Policy
  • Terms of Service

© 2025 RainTech. All rights reserved.