What is Include in Employee’s Payroll? – The payroll system for employees in a company must comply with applicable money laws. According to Manpower Act number 13 of 2003, article 1, paragraph 3 states that an employee is any person who works and receives wages or other forms of remuneration. Article 1 paragraph 6a explains that a company is any form of business that is either a legal entity or non-legal entity, belongs to an individual or association, or belongs to a legal entity, both private and state-owned, which employs workers by paying wages or other forms of remuneration.
Employees receive wages from the employer for the results of work at a certain time according to the agreement between the employee and the employer. The validity period can be in the form of hourly, daily, or monthly. The amount of income earned by workers is regulated in an agreement between the company and the worker, and the amount must be in accordance with applicable regulations, which are regulated in article 1 paragraph 30, wages are the rights of workers received and expressed in the form of money as compensation from the employer or provider. work for workers determined and paid according to a work agreement, agreement, or statutory regulations, including allowances for workers and their families for a job and/or service that has been or will be performed.
Minister of Manpower and Transmigration Decree No. Kep-226 / Men / 2000 concerning Minimum Wages explains that the wages given to workers must be greater than the minimum wages applicable in the area where the worker is placed. In accordance with Government Regulation Number 12 of 2013 concerning health insurance, the government requires companies to include workers in the government health insurance program. According to Government Regulation No. 40 of 2004 concerning the national social security system, the government requires companies to enroll workers in the government workforce social security program. In Pemenaker number 6 of 2016 states, every worker who has worked for 1 full month is entitled to Holiday Festive (THR) which is proportional to the length of service.
On the time used to work outside of working time according to the Decree of the Minister of Manpower Number Kep. 102/Men/VI/2004 Article 1 considered overtime for workers. In the decree of the Minister of Manpower number: Kep – 150/Men/2000 regarding the settlement of termination of employment and the determination of severance pay, service reward, and compensation in the company, it is explained that it is the right for workers to get severance pay, rewards, compensations, and allowances for the work that has been done in accordance with the provisions. Referring to the company’s obligations, that every income received by workers is obliged to be calculated of tax and paid to the state treasury and reported to the tax director general every month by the employer according to the due date.
With the many variables of income mentioned above, Indoservice is here to provide services in handling the payroll activities of your employees, we can assist you with all payroll-related service, start from registering, calculating, paying, and reporting all obligations and rights for employees and companies. We will complete it properly and in accordance with applicable regulations. Contact us now for special offers.