In Indonesia, working hours are strictly regulated to balance productivity with employee welfare. Employers must comply not only to avoid disputes but also to build trust with their workforce.

The law sets two standard workweek options:

• 7 hours/day, 6 days/week (40 hours total), or
• 8 hours/day, 5 days/week (40 hours total).

Every employee is entitled to at least one rest day per week. Any work beyond these limits qualifies as overtime and requires the employee’s consent.

Overtime is limited to 4 hours per day and 18 hours per week. The pay formula is based on the monthly wage converted into an hourly rate. Typically, the first overtime hour is paid at 1.5x the normal rate, and subsequent hours at 2x.

But what if more is needed? Yes, it’s possible—but only with Minister of Manpower (MoM) approval. Employers must file a request and demonstrate necessity (e.g., peak production periods). Without approval, excess overtime can expose the company to sanctions.

Case Example

In 2021, a manufacturing firm in West Java faced legal disputes after requiring workers to exceed 18 overtime hours per week without MoM approval. The Industrial Relations Court ordered the company to compensate affected employees, damaging both its finances and reputation.

Conclusion

Respecting the statutory 40-hour workweek and properly managing overtime ensures compliance and harmony. For foreign employers, aligning with these rules is critical.

Need guidance on HR compliance? Contact Urwah AlBarki (+62 815-1852-024).

References:

1. Law No. 13/2003 on Manpower, Articles 77–85 (working hours, overtime limits, and rest periods).
2. Law No. 11/2020 on Job Creation (Omnibus Law) – amendments to employment provisions.
3. Government Regulation No. 35/2021, Articles 21–27 (detailed rules on overtime calculation, maximum limits, and employee consent).
4. Minister of Manpower Regulation No. 102/2004 on Overtime and Overtime Pay (overtime formula: 1.5x first hour, 2x subsequent hours).