A practical guide to standard schedules, weekly rest, overtime, and working-hours compliance for employers.
Understanding working hours in Indonesia is important for companies managing employees, payroll, and HR policies in the country. Working time is not simply a matter of setting office hours. Employers also need to consider weekly rest, overtime, employment documentation, attendance records, and payroll.
For foreign companies, this becomes particularly important when a global working-hours policy is introduced in Indonesia. A Monday-to-Friday schedule used by a company’s headquarters may need to be reviewed against the applicable Indonesian employment framework before it is applied to local employees.
The main framework covered in this article is Government Regulation No. 35 of 2021, which regulates working time, rest periods, overtime, and overtime pay. The regulation is currently listed as in force by the Database of Indonesian Regulations maintained by BPK.
The 40-Hour Rule at a Glance
For the standard working-time framework, employers generally work within a 40-hour weekly schedule.
| Working arrangement | Daily schedule | Weekly hours | Weekly rest |
|---|---|---|---|
| 6 working days | 7 hours/day | 40 hours | 1 day |
| 5 working days | 8 hours/day | 40 hours | 2 days |
These arrangements are set out in Article 21 and Article 22 of Government Regulation No. 35 of 2021.
The exact schedule should then be reflected in the applicable employment documentation and company rules.
Working Hours in Indonesia: The Standard Weekly Framework
The standard framework is straightforward, but the way companies implement it matters.
Working Hours in Indonesia Under a 5-Day or 6-Day Schedule
Five-day schedule
Employees work:
8 hours per day × 5 days = 40 hours per week
The standard weekly rest entitlement under this arrangement is two days.
Six-day schedule
Employees work:
7 hours per day × 6 days = 40 hours per week
The standard weekly rest entitlement under this arrangement is one day.
The company should make the selected arrangement clear to employees and apply it consistently across employment documentation, scheduling, attendance, and payroll.
The Schedule Needs to Exist on Paper, Not Just on the Calendar
Working hours should not exist only as an informal arrangement between a manager and an employee.
Government Regulation No. 35 of 2021 provides that the implementation of working hours in the company is regulated through the employment agreement, company regulation, or collective labor agreement, as applicable.
This matters because the schedule becomes the reference point for several other systems.
For example:
Employment agreement → Work schedule → Attendance → Overtime → Payroll
If these systems use different assumptions about working time, discrepancies can appear later.
For foreign companies, this is especially relevant when adapting an existing global HR policy to Indonesian employees.
Weekly Rest Is Part of Working-Time Planning
A working-hours policy should define not only when employees work, but also when they are entitled to weekly rest.
Under the standard framework:
- A six-day working arrangement generally provides one weekly rest day.
- A five-day working arrangement generally provides two weekly rest days.
Companies should therefore build weekly rest directly into workforce schedules rather than treating it as a separate HR issue.
This becomes more important for teams operating shifts, customer support functions, production activities, or other operations where employees may not follow a conventional Monday-to-Friday pattern.
Not Every Business Uses the Standard Schedule
The 40-hour framework is not applied identically to every sector or type of work.
Government Regulation No. 35 of 2021 allows different working-time arrangements for certain business sectors or types of work. It also provides for businesses with characteristics such as flexible working time or work that can be performed outside the workplace.
This means employers should avoid assuming that one schedule automatically applies to every position.
Before creating a working-hours policy, companies should consider:
- The nature of the business
- The type of work performed
- Whether operations require shifts
- Whether employees work remotely
- Whether a special sectoral arrangement applies
For specialised sectors, the applicable implementing rules should be reviewed before the schedule is finalised.
Overtime Starts When Employees Work Beyond the Applicable Schedule
Overtime should be treated as a separate employment process rather than an informal extension of normal working hours.
Government Regulation No. 35 of 2021 defines overtime in relation to the applicable normal working hours and also covers work performed during weekly rest days or official holidays.
How Much Overtime Is Allowed?
Under Article 26, overtime is generally limited to:
- 4 hours per day
- 18 hours per week
The stated weekly limit excludes overtime performed during weekly rest periods and/or official holidays.
Employers should therefore monitor accumulated overtime rather than reviewing overtime one day at a time.
Overtime Needs an Employer Order and Employee Agreement
Overtime also requires a defined approval process.
Under Article 28, overtime requires an employer order and the employee’s agreement, provided in writing and/or through digital media. Employers must also keep records identifying employees who worked overtime and the duration of that overtime.
For companies using digital HR systems, this means overtime approval does not have to depend entirely on paper forms.
The important point is that the company should be able to demonstrate:
Who worked overtime → When → For how long → With what approval
Overtime Affects Payroll, Not Just Attendance
Overtime management becomes a payroll issue once employees work beyond their applicable normal hours.
Government Regulation No. 35 of 2021 requires overtime pay for qualifying overtime, subject to the rules and exceptions under the regulation.
The regulation also distinguishes overtime calculations depending on whether the work takes place on a normal working day, weekly rest day, or official holiday and whether the employee follows a five-day or six-day schedule.
This is why overtime should not be tracked independently from payroll.
A useful internal process is:
Attendance record → Overtime approval → Overtime calculation → Payroll
That connection helps reduce the risk of approved overtime being omitted from salary processing.
What Employers Need to Capture in Their Attendance System
An attendance system should do more than record whether an employee arrived at work.
For working-hours management, companies should be able to identify:
- Normal working hours
- Actual attendance
- Absences
- Late arrivals
- Early departures
- Overtime hours
- Approved overtime
- Weekly rest schedules
The objective is not simply to collect data. The records need to support payroll and employment administration.
For example, when an employee works approved overtime, the recorded overtime should be traceable into the payroll calculation.
Build Working Hours Into Payroll From the Start
Payroll and working hours should be designed together.
A company’s payroll process should reflect:
Contracted schedule
↓
Actual attendance
↓
Approved overtime
↓
Payroll calculation
This is particularly important for businesses with multiple working schedules or employees whose working time changes regularly.
The source article correctly identifies this connection between working-hours management, attendance, overtime approval, and payroll as a core operational issue.
Flexible Working Hours Need a Clear Framework
Flexible working arrangements can exist, but flexibility should not be confused with having no defined working-time structure.
Government Regulation No. 35 of 2021 recognises certain sectors or types of work where flexible working time or work outside the workplace may apply.
For employers, the practical question is therefore not simply:
“Can employees work flexibly?”
It is:
“How will the working arrangement be defined, recorded, and connected to the applicable employment requirements?”
A flexible arrangement should still have clear expectations around working time, reporting, attendance where applicable, and overtime.
What Foreign Companies Should Change Before Applying a Global HR Policy
A foreign company’s existing HR policy should not automatically be copied into its Indonesian operation.
Before implementation, review:
Global working schedule
Does headquarters use a five-day or another working arrangement?
Indonesian employment documentation
Does the local employment documentation accurately reflect the Indonesian working schedule?
Time tracking
Can the company’s attendance system capture the actual local arrangement?
Overtime process
Does the global approval process meet the requirements applicable in Indonesia?
Payroll integration
Can approved overtime and actual working time flow correctly into Indonesian payroll?
This review is particularly useful when a company is hiring its first employees in Indonesia or moving from a regional HR system to a local payroll process.
A Working-Hours Review for Indonesian Employers
Before launching or updating a working-hours policy, check whether:
- The applicable weekly schedule is defined.
- The daily working hours are documented.
- Weekly rest days are established.
- The working arrangement appears in the appropriate employment documentation.
- Overtime approval procedures are defined.
- Overtime records can be retrieved.
- Attendance records are maintained.
- Payroll reflects qualifying overtime.
- Special sectoral working-time rules have been reviewed where relevant.
- HR, attendance, and payroll systems use consistent working-time information.
Frequently Asked Questions
What are the standard working hours in Indonesia?
The standard framework generally provides for 40 working hours per week, arranged as either 7 hours per day over 6 working days or 8 hours per day over 5 working days. Certain sectors or types of work may have different arrangements.
How many days of weekly rest do employees receive?
Under the standard framework, employees working six days per week generally receive one weekly rest day, while employees working five days per week generally receive two.
How much overtime is allowed in Indonesia?
Under Government Regulation No. 35 of 2021, overtime is generally limited to four hours per day and 18 hours per week, with the regulation excluding certain overtime performed on weekly rest days and official holidays from those limits.
Does overtime require employee approval?
Yes. The regulation requires an employer order and the employee’s agreement, which can be provided in writing and/or through digital media. Employers must also maintain overtime records.
Do foreign companies need to follow Indonesian working-hours rules?
Companies employing workers in Indonesia need to structure their local employment arrangements according to the applicable Indonesian framework. A global headquarters policy should therefore be reviewed before it is applied to Indonesian employees.
Can companies use flexible working hours in Indonesia?
Certain sectors or types of work can have different working-time arrangements, including flexible working arrangements under the framework established by Government Regulation No. 35 of 2021. The applicable requirements depend on the nature of the work and sector.
Conclusion
Working hours in Indonesia are not simply a matter of deciding when employees start and finish work.
Employers need to connect the working schedule with weekly rest, employment documentation, overtime approval, attendance records, and payroll. The standard framework generally uses a 40-hour week, but specific sectors and types of work may follow different arrangements.
For foreign companies, reviewing these elements before implementing a local HR policy can help create a more consistent employment system and reduce administrative gaps between headquarters and the Indonesian operation.
Manage Your Indonesian Workforce with BigFish Global Consulting
Setting working hours is one part of managing an Indonesian workforce. Companies may also need support with employment structures, HR administration, payroll, and ongoing employment compliance.
BigFish Global Consulting provides services including:
- HR services
- Employer of Record solutions
- Payroll administration
- Recruitment support
- Employment compliance support
Our team helps foreign companies build and manage their workforce in Indonesia with local HR and employment support.
Contact BigFish Global Consulting to discuss your Indonesian workforce requirements.
