CALCULATOR
Indonesian severance pay calculator
Work out Indonesian severance (pesangon), long-service pay (UPMK), entitlement compensation (UPH) and final tax under PP 35/2021 and PP 68/2009 for 23 termination reasons.
English edition. Official forms and source documents may be in Indonesian.
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How much severance do I get if I am dismissed in Indonesia?
Under Government Regulation (PP) 35/2021, severance (pesangon) is 1 month's wage for under 1 year of service, rising by 1 month per year to 9 months' wage for 8 years or more. Long-service pay (UPMK) starts at 2 months' wage after 3 years and reaches 10 months after 24 years or more. These are multiplied by a factor for the termination reason, for example 0.5 for redundancy because the company is making losses and 1.75 for retirement. Severance carries final income tax of 0% on the first Rp50 million.
Work out your severance
Estimated result
The numbers you enter are calculated on your device and are not sent to Panduan Warga.
How severance is calculated
Article 40 of PP 35/2021 sets three entitlements for dismissed workers. Severance pay (pesangon): 1 month's wage for under 1 year of service, 2 months for 1 to under 2 years, rising by 1 month per year to 9 months' wage for 8 years or more. Long-service pay (UPMK): 2 months' wage for 3 to under 6 years, rising by 1 month every 3 years to 10 months' wage for 24 years or more.
Entitlement compensation (UPH) covers unused annual leave not yet forfeited, the cost of the worker and family travelling home to the place of hire, and other rights under the employment contract, company regulations or collective agreement.
Articles 41 to 57 set multipliers by termination reason. For example, redundancy because the company is making losses: 0.5 times severance and 1 times UPMK; redundancy to prevent losses: 1 times; retirement: 1.75 times; prolonged illness beyond 12 months or death: 2 times. Resignation and serious misconduct give no severance or UPMK, but UPH and separation pay remain.
The wage for severance is basic wage plus fixed allowances for the worker and family. Daily-paid workers use 30 times the daily wage, and piece-rate workers the average of the last 12 months. For micro and small businesses, amounts are agreed between employer and worker.
Severance, UPMK and UPH are subject to final PPh 21 in layers under PP 68/2009 if paid in one sum or within at most 2 calendar years.
Severance = months of wage by service × wage × reason multiplier
UPMK = months of wage by service × wage × UPMK multiplier
Total = severance + UPMK + UPH
Final tax = 0% × first Rp50m + 5% × next Rp50m + 15% × up to Rp500m + 25% × above
Worked example
Wage Rp8,000,000, 10 years 4 months of service, redundancy because the company is making losses (Article 43(1)), UPH not yet included.
| Item | Calculation | Result |
|---|---|---|
| Severance | 9 × 0.5 × Rp8,000,000 | Rp36,000,000 |
| UPMK | 4 × 1 × Rp8,000,000 | Rp32,000,000 |
| Total before tax | Rp68,000,000 | |
| Final tax | 0% × Rp50,000,000 + 5% × Rp18,000,000 | Rp900,000 |
| Estimated received | Rp67,100,000 |
Severance, long-service, termination-reason and final-tax tables
| Service | Severance |
|---|---|
| under 1 year | 1 month’ wage |
| 1 to under 2 years | 2 months’ wage |
| 2 to under 3 years | 3 months’ wage |
| 3 to under 4 years | 4 months’ wage |
| 4 to under 5 years | 5 months’ wage |
| 5 to under 6 years | 6 months’ wage |
| 6 to under 7 years | 7 months’ wage |
| 7 to under 8 years | 8 months’ wage |
| 8 years or more | 9 months’ wage |
| Service | UPMK |
|---|---|
| 3 to under 6 years | 2 months’ wage |
| 6 to under 9 years | 3 months’ wage |
| 9 to under 12 years | 4 months’ wage |
| 12 to under 15 years | 5 months’ wage |
| 15 to under 18 years | 6 months’ wage |
| 18 to under 21 years | 7 months’ wage |
| 21 to under 24 years | 8 months’ wage |
| 24 years or more | 10 months’ wage |
Multipliers by termination reason (Arts 41–57, PP 35/2021)
| Reason | Severance | UPMK | Separation pay | Article |
|---|---|---|---|---|
| Merger, consolidation or spin-off (worker unwilling to continue or employer unwilling to accept) | 1× | 1× | — | Pasal 41 |
| Company takeover | 1× | 1× | — | Pasal 42(1) |
| Takeover changing work terms, worker unwilling to continue | 0.5× | 1× | — | Pasal 42(2) |
| Efficiency because the company is making losses | 0.5× | 1× | — | Pasal 43(1) |
| Efficiency to prevent losses | 1× | 1× | — | Pasal 43(2) |
| Closure due to losses over 2 years | 0.5× | 1× | — | Pasal 44(1) |
| Closure not caused by losses | 1× | 1× | — | Pasal 44(2) |
| Closure due to force majeure | 0.5× | 1× | — | Pasal 45(1) |
| Force majeure without closure | 0.75× | 1× | — | Pasal 45(2) |
| Debt-payment suspension (PKPU) due to losses | 0.5× | 1× | — | Pasal 46(1) |
| PKPU not due to losses | 1× | 1× | — | Pasal 46(2) |
| Bankruptcy | 0.5× | 1× | — | Pasal 47 |
| Worker-requested termination for employer misconduct (Pasal 36 letter g) | 1× | 1× | — | Pasal 48 |
| Tribunal finds employer did not commit the alleged misconduct | 0× | 0× | Yes | Pasal 49 |
| Voluntary resignation (meeting Pasal 36 letter i requirements) | 0× | 0× | Yes | Pasal 50 |
| Absent 5+ consecutive working days after 2 written summons | 0× | 0× | Yes | Pasal 51 |
| Breach of contract/company rules after 3 warning letters | 0.5× | 1× | — | Pasal 52(1) |
| Serious (urgent) violation defined in contract/company rules/CBA | 0× | 0× | Yes | Pasal 52(2) |
| Detained 6 months over an alleged crime causing company loss | 0× | 0× | Yes | Pasal 54(1) |
| Detained 6 months over an alleged crime not causing company loss | 0× | 1× | — | Pasal 54(2) |
| Prolonged illness or work-accident disability beyond 12 months | 2× | 1× | — | Pasal 55(1)-(2) |
| Retirement age | 1.75× | 1× | — | Pasal 56 |
| Death of worker (paid to heirs) | 2× | 1× | — | Pasal 57 |
| Gross band | Rate |
|---|---|
| up to Rp50,000,000 | 0% |
| over Rp50,000,000 to Rp100,000,000 | 5% |
| over Rp100,000,000 to Rp500,000,000 | 15% |
| over Rp500,000,000 | 25% |
Calculator limits
- The calculator uses PP 35/2021 as in force on 25 September 2026. The rules may change if a new manpower law is passed.
- Separation pay for resignation and some other reasons is set in the contract, company regulations or collective agreement, so it is not calculated.
- Work out leave value and travel costs for UPH yourself; the regulation does not set a daily-wage divisor.
- Not for micro and small businesses (amounts by agreement), and it does not calculate compensation for fixed-term (PKWT) contracts.
- JHT, JKP and pension benefits from BPJS Ketenagakerjaan are separate from severance and claimed separately.
Frequently asked questions
Do workers who resign get severance?
No. Workers who resign voluntarily and meet the requirements receive no severance or long-service pay, but are entitled to entitlement compensation and separation pay set in the contract, company regulations or collective agreement (Article 50, PP 35/2021).
How much severance for redundancy?
If the redundancy is because the company is making losses, the worker receives 0.5 times severance, 1 times UPMK and UPH (Article 43(1)). If it is to prevent losses, severance and UPMK are each 1 times (Article 43(2)).
How much severance on retirement?
A worker reaching retirement age receives 1.75 times severance, 1 times UPMK and UPH (Article 56, PP 35/2021). If the employer enrolled the worker in a pension programme, employer contributions may be offset and the employer pays any shortfall.
Is severance taxed?
Yes, with final PPh 21 in layers under PP 68/2009: 0% up to Rp50 million, 5% above Rp50 million to Rp100 million, 15% above Rp100 million to Rp500 million and 25% above Rp500 million. The regulation's example: Rp175,000,000 severance is taxed Rp13,750,000.
Are JHT and JKP part of severance?
No. JHT, JKP and pension benefits are BPJS Ketenagakerjaan benefits claimed separately. Severance, UPMK and UPH are paid by the employer.
Sources and review
Reviewed . Tables and multipliers are taken from Articles 40 to 57 of PP 35/2021; tax rates from Article 4 of PP 68/2009. The worked examples are tested automatically every time the site is built.
- PP 35/2021 - JDIH BPK ↗peraturan.bpk.go.id · Accessed 25 September 2026
- PP 35/2021 PDF ↗peraturan.bpk.go.id · Accessed 25 September 2026
- UU 6/2023 (Cipta Kerja) - JDIH BPK (Pasal 81 angka 48: Pasal 157 UU 13/2003) ↗peraturan.bpk.go.id · Accessed 25 September 2026
- PP 68/2009 - JDIH BPK ↗peraturan.bpk.go.id · Accessed 25 September 2026
- PMK 16/PMK.03/2010 - JDIH BPK ↗peraturan.bpk.go.id · Accessed 25 September 2026
- DJP, Aspek Perpajakan Usaha Jasa Konstruksi (June/July 2026) - references list ↗pajak.go.id · Accessed 25 September 2026