Introduction

Leave entitlements in Indonesia are not only statutory obligations but also a reflection of how companies respect employee welfare. For foreign employers, understanding these entitlements is critical to avoid disputes and to build a compliant and trusted workplace.

A Real Case: When Leave Became a Legal Dispute

In 2021, a multinational company in Jakarta denied an employee’s request for menstrual leave. The employee, supported by the labor union, reported the case to the local Manpower Office. The Ministry of Manpower confirmed that menstrual leave is a protected right under Law No. 13 of 2003. This case highlighted how neglecting even “small” entitlements can damage a company’s reputation and trigger regulatory action.

Key Leave Entitlements in Indonesia

• Annual Leave: 12 paid days after 12 months of continuous service.
• Public Holidays: Nationally determined and separate from annual leave.
• Sick Leave: Paid leave with wage coverage under a tiered system depending on illness duration.
• Maternity Leave: 3 months (1.5 months before and after childbirth) with full pay.
• Paternity Leave: Recognized, though shorter than maternity leave.
• Menstrual Leave: Up to 2 days per month, if needed.
• Family Leave: For marriage, bereavement, or religious duties.

What About Cuti Panjang (Long Service Leave)?

• Cuti Panjang* refers to extended leave granted to employees after a specific tenure, typically 1 month of paid leave after 6 years of continuous service, and every 5 years thereafter.
• However, the Omnibus Law (Law No. 11 of 2020 on Job Creation) revised its application. Long service leave is now optional, applicable only if stipulated in company regulations, collective agreements, or employment contracts.
• While not mandatory, many companies—especially in the banking and multinational sectors—continue to provide Cuti Panjang as part of their talent retention strategy and to maintain competitiveness as an employer of choice.

Conclusion

Leave entitlements in Indonesia are broader than in many other jurisdictions. For employers, compliance is not merely a legal duty but a strategic investment in employee trust and organizational stability. By integrating clear leave policies into company regulations and respecting both statutory and voluntary entitlements, foreign employers can avoid costly disputes and strengthen workplace harmony.

References

• Law of the Republic of Indonesia No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020).
• Government Regulation No. 35 of 2021 on Fixed-Term Employment, Outsourcing, Working Hours, and Termination.
• Ministry of Manpower Decree No. 51/MEN/IV/2004 regarding Long Service Leave (Cuti Panjang).
• Kompas (2021). Karyawan Mengajukan Cuti Haid, Perusahaan Wajib Patuhi Aturan UU Ketenagakerjaan.