Understand Standard Working Hours, Rest Periods, and Overtime Rules in Indonesia
Understanding working hours in Indonesia is essential for employers managing employees and building compliant workforce policies. Indonesian employment regulations establish standard working-time arrangements, weekly rest periods, and specific rules for overtime work.
For companies operating in Indonesia, working hours should be properly reflected in employment agreements, company policies, attendance systems, and payroll processes. The main framework is provided by Government Regulation No. 35 of 2021, which remains in force and regulates working time, rest periods, overtime work, and overtime pay.
What Are the Standard Working Hours in Indonesia?
Under Government Regulation No. 35 of 2021, the standard working-time arrangements for employees generally follow one of two schedules:
- 6 working days: 7 hours per day and 40 hours per week.
- 5 working days: 8 hours per day and 40 hours per week.
The regulation also provides specific arrangements for certain business sectors or types of work where different working-time patterns may apply.
The actual schedule should be established through the employment agreement, company regulations, or collective labor agreement, as applicable.
6-Day Workweek
Under a six-day working arrangement, the standard framework is:
7 hours per day × 6 days = 40 hours per week.
Employees are generally entitled to one weekly rest day under this arrangement.
5-Day Workweek
Under a five-day working arrangement, the standard framework is:
8 hours per day × 5 days = 40 hours per week.
Employees are generally entitled to two weekly rest days under this arrangement.
Employers should clearly communicate which working schedule applies to their employees and ensure that the arrangement is consistently reflected in HR and payroll records.
What Does Indonesian Law Say About Working Hours?
Working hours in Indonesia are generally structured around a maximum of 40 hours per week, with the standard arrangement being 7 hours per day over six working days or 8 hours per day over five working days. Certain sectors or types of work may have different arrangements. Employers must also provide applicable weekly rest periods and comply with overtime requirements.
Working Hours and Employment Contracts
Working hours should not be treated as an informal arrangement between managers and employees.
The applicable working schedule should be documented through the relevant employment documentation, such as an employment agreement, company regulation, or collective labor agreement.
This is particularly important for foreign companies entering Indonesia because working arrangements established at headquarters may not automatically reflect Indonesian employment requirements.
For example, a company may operate globally using a standard Monday-to-Friday schedule, but it should still ensure that the Indonesian employment arrangement complies with applicable local requirements.
Weekly Rest Periods
Working hours are closely connected to employees’ entitlement to weekly rest.
Under the standard framework in Government Regulation No. 35 of 2021:
- Employees working six days per week generally receive one day of weekly rest.
- Employees working five days per week generally receive two days of weekly rest.
Companies should incorporate these rest periods into workforce scheduling rather than treating them solely as an employee benefit.
Working Hours for Certain Sectors
The standard 40-hour framework does not necessarily apply identically to every type of business.
Government Regulation No. 35 of 2021 provides specific provisions for certain business sectors or types of work that may apply working-time arrangements that differ from the standard framework.
This means employers should consider the nature of their operations before applying a standard working-hours policy to every employee.
For businesses operating shifts, continuous operations, or other specialised work arrangements, the applicable provisions should be reviewed carefully.
Business Perspective
For international companies, working hours should be designed together with employment contracts, attendance systems, payroll, and workforce planning. A compliant schedule can help businesses avoid unnecessary overtime costs while giving employees and managers clear expectations about working time.
Expert Insight
Working-hours compliance is not simply about counting hours. Employers should consider the complete relationship between scheduled working time, weekly rest, overtime, attendance records, and payroll. Keeping these systems aligned makes it easier to identify potential compliance issues before they affect employees or the business.
Overtime and Working Hours in Indonesia
Working beyond the employee’s regular schedule is generally treated as overtime work and is subject to specific requirements under Indonesian employment regulations. Government Regulation No. 35 of 2021 regulates both overtime working time and overtime pay.
What Is Overtime Work?
Overtime generally refers to work performed beyond the applicable normal working hours or on weekly rest days and public holidays, subject to the conditions established under the regulations.
Employers should not treat overtime as an informal extension of an employee’s normal working day. Overtime should be properly managed, recorded, and reflected in payroll.
Overtime Limits
Government Regulation No. 35 of 2021 establishes limits for overtime work. In general, overtime is limited to 4 hours per day and 18 hours per week, excluding overtime performed on weekly rest days and/or public holidays.
Companies should therefore establish an overtime approval process and monitor accumulated overtime hours.
Overtime Pay
Employees who perform qualifying overtime work are generally entitled to overtime pay.
The calculation can vary depending on whether overtime occurs on a normal working day, weekly rest day, or public holiday, as well as whether the employer follows a five-day or six-day working week. Government Regulation No. 35 of 2021 provides different calculation rules for these circumstances.
This is particularly important for payroll teams because inaccurate overtime records can result in incorrect employee payments.
How Should Employers Manage Working Hours?
A compliant working-hours system should connect the employee’s contractual schedule with actual attendance and payroll records.
Establish a Clear Work Schedule
Employers should clearly define:
- Normal working days.
- Daily working hours.
- Break periods.
- Weekly rest days.
- Overtime procedures.
- Overtime approval requirements.
The applicable working hours should be reflected in the employment agreement, company regulations, or collective labor agreement, as applicable.
Track Attendance and Overtime
Employers should maintain reliable records of employees’ working time.
Attendance systems can help companies identify:
- Late arrivals.
- Early departures.
- Absences.
- Excess working hours.
- Overtime patterns.
- Potential payroll discrepancies.
Accurate records are particularly important when overtime payments are calculated based on actual working time.
Connect Working Hours With Payroll
Working-hours management should not operate separately from payroll.
For example, if an employee works approved overtime but the additional hours are not transferred correctly into the payroll system, the company may calculate the employee’s salary incorrectly.
This is why working hours, attendance, overtime approval, and payroll should be managed as connected processes.
Can Companies Have Flexible Working Hours?
Companies may establish different working arrangements depending on their business operations, provided that the applicable employment requirements are observed.
Government Regulation No. 35 of 2021 also recognises that certain business sectors or types of work may have working-time arrangements that differ from the standard framework.
Employers should therefore assess their industry and operational requirements before applying a standard schedule to every employee.
For companies operating shifts, continuous operations, or specialised working arrangements, the applicable rules should be reviewed carefully.
Practical Working Hours Checklist for Employers
Before implementing a working-hours policy in Indonesia, employers should review:
- Employment contracts specify the applicable working schedule.
- The company has defined normal working hours.
- Weekly rest periods are properly scheduled.
- Overtime approval procedures are established.
- Overtime hours are accurately recorded.
- Attendance records are maintained.
- Overtime payments are correctly reflected in payroll.
- Company policies are consistent with applicable employment regulations.
- Special working arrangements are reviewed where applicable.
For foreign companies, this process is especially useful when adapting a global HR policy to Indonesian employment requirements.
Business Perspective
Working-hours compliance should be integrated into the company’s wider HR and payroll infrastructure. A clear schedule, reliable attendance records, and controlled overtime process can help employers manage workforce costs while reducing compliance risks.
Expert Insight
The most effective approach is to treat working hours as a connected HR system, rather than simply a schedule. When employment contracts, attendance, overtime approval, payroll, and company policies use consistent rules, employers have greater visibility over both compliance and workforce costs.
Working Hours Compliance for Employers in Indonesia
Employers should manage working hours as part of a broader employment compliance system. The applicable schedule should be clearly documented, consistently applied, and connected with attendance, overtime, and payroll records.
What Should Be Included in a Working Hours Policy?
A practical working-hours policy should clearly establish:
- Normal working days.
- Daily working hours.
- Break periods.
- Weekly rest days.
- Overtime procedures.
- Overtime approval requirements.
- Attendance recording procedures.
For certain sectors or types of work, different working-time arrangements may apply. Government Regulation No. 35 of 2021 allows specific arrangements to be established through an employment agreement, company regulation, or collective bargaining agreement where applicable.
Overtime Approval and Recordkeeping
Overtime should be formally managed rather than treated as an informal extension of the working day.
Under Government Regulation No. 35 of 2021, overtime requires an employer’s order and the employee’s agreement, which may be provided in writing or through digital media. Employers must also maintain records identifying employees who work overtime and the duration of their overtime work.
This makes an effective overtime process particularly important for companies using digital attendance or payroll systems.
Why Overtime Records Matter
Accurate overtime records help employers:
- Calculate overtime pay correctly.
- Monitor excessive working hours.
- Reconcile attendance with payroll.
- Identify recurring overtime patterns.
- Maintain supporting documentation for employment compliance.
Employers should therefore ensure that approved overtime is transferred accurately from the attendance system into payroll.
Working Hours and Payroll
Working-hours management has a direct relationship with payroll.
When an employee works approved overtime, the additional hours may create an obligation to provide overtime pay. Government Regulation No. 35 of 2021 establishes overtime-pay requirements for employees working beyond the applicable working hours.
For this reason, companies should ideally connect:
Employment Contract → Attendance → Overtime Approval → Payroll
This reduces the risk of discrepancies between the employee’s contractual schedule, actual working time, and salary calculation.
Working Hours Compliance Checklist
Employers can use the following checklist when reviewing their working-hours practices in Indonesia:
- Working schedules are documented.
- Employment contracts reflect the applicable working arrangement.
- Weekly rest days are clearly established.
- Attendance is recorded accurately.
- Overtime requires appropriate approval.
- Overtime hours are properly recorded.
- Overtime pay is included in payroll where applicable.
- Working-hours policies are consistent with company regulations.
- Special arrangements for certain sectors or types of work are reviewed.
- HR and payroll records are regularly reconciled.
When Should Foreign Companies Review Working Hours?
Foreign companies should review Indonesian working-hours requirements before hiring their first local employee and whenever they change their workforce structure.
This is particularly important when a company is:
- Establishing an Indonesian entity.
- Hiring its first employees in Indonesia.
- Introducing a global HR policy.
- Implementing a new attendance system.
- Changing working schedules.
- Expanding into shift-based operations.
- Increasing overtime requirements.
A global employment policy should not simply be copied into the Indonesian operation without checking whether the working arrangement is appropriate under local requirements.
Frequently Asked Questions
What are the standard working hours in Indonesia?
The standard framework generally provides for 40 working hours per week, commonly arranged as seven hours per day over six working days or eight hours per day over five working days. Certain sectors or types of work may have different arrangements.
How many hours of overtime are allowed in Indonesia?
Under Government Regulation No. 35 of 2021, overtime is generally limited to four hours per day and 18 hours per week, excluding overtime performed during weekly rest periods and/or official holidays.
Is overtime paid in Indonesia?
Generally, employers must pay overtime compensation when employees work beyond the applicable working hours, subject to the exceptions and requirements provided under the regulations.
Do foreign companies need to follow Indonesian working-hours rules?
Yes. Companies employing workers in Indonesia need to consider the Indonesian employment framework when establishing working arrangements, regardless of whether the company’s headquarters are located overseas.
Conclusion
Understanding working hours in Indonesia is an important part of building a compliant employment structure. Employers should establish clear schedules, provide applicable rest periods, properly manage overtime, and maintain accurate attendance and payroll records.
For foreign companies entering Indonesia, getting these processes right from the beginning can make ongoing HR administration significantly easier. If managing employment, payroll, and compliance locally is becoming complex, [BigFish Global Consulting’s HR Services] can help companies establish and manage their Indonesian workforce.
