---
title: "Severance Pay Calculator Indonesia (PP 35/2021)"
description: "Work out Indonesian severance, long-service pay and entitlement compensation by dismissal reason (PP 35/2021), plus PKWT compensation. Results are minimums."
lang: en
canonical: "https://kariraman.com/en/tools/severance-pay/"
dateModified: "2026-10-08"
sources:
  - "https://peraturan.go.id/files/pp35-2021bt.pdf"
  - "https://peraturan.bpk.go.id/Details/246523/uu-no-6-tahun-2023"
  - "https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_11215_1730375514.pdf"
  - "https://peraturan.go.id/files/uu2-2004.pdf"
  - "https://emedia.dpr.go.id/news/2026/10/07/dpr-sahkan-uu-pelindungan-ketenagakerjaan-dasco-kado-terindah-untuk-buruh"
  - "https://kemnaker.go.id/news/detail/menaker-ungkap-poin-penting-uu-pelindungan-ketenagakerjaan-yang-wajib-diketahui-pekerja"
  - "https://satudata.kemnaker.go.id/data/kumpulan-data/3005"
  - "https://jdih.jakarta.go.id/dokumen/detail/14763"
  - "https://kemnaker.go.id/news/detail/wamenaker-apresiasi-paket-kebijakan-kesejahteraan-pekerja-dki-pascapenetapan-ump-2026-bisa-dicontoh-oleh-daerah-lain"
  - "https://satudata.kemnaker.go.id/data/kumpulan-data/2252"
  - "https://peraturan.go.id/files/pp-no-49-tahun-2025.pdf"
---

> Markdown version of https://kariraman.com/en/tools/severance-pay/. Cite that HTML page and its update date.

# Severance pay calculator: work out pesangon, long-service pay and contract compensation

Choose what to calculate, enter your wage and length of service, then the reason for dismissal. The result is the least the rules require.

**The calculation runs in your browser. No figures are sent or stored.**

Prepared with AI assistance. Checked against official sources and approved for publication by Kaiser Khan (editor). Approval date: 8 October 2026.

**Legal status:** the Labour Protection Law was approved by the DPR and the Government on 6 October 2026 but has not been promulgated and its text is not public. Until it takes effect, the rules on this page apply.

[Dewan Perwakilan Rakyat RI (emedia)](https://emedia.dpr.go.id/news/2026/10/07/dpr-sahkan-uu-pelindungan-ketenagakerjaan-dasco-kado-terindah-untuk-buruh) 7 October 2026; [Kementerian Ketenagakerjaan RI](https://kemnaker.go.id/news/detail/menaker-ungkap-poin-penting-uu-pelindungan-ketenagakerjaan-yang-wajib-diketahui-pekerja) 7 October 2026

## How is severance pay calculated in Indonesia?

Under PP 35/2021 Article 40, a dismissed worker is owed severance pay (1 to 9 months of wages by length of service), long-service pay or UPMK (from 3 years of service, 2 to 10 months of wages) and entitlement compensation. Severance pay and UPMK are then multiplied by a factor for the dismissal reason in Articles 41 to 57, for example 0.5 times severance pay for redundancy because the company is making losses.

[Kementerian Hukum RI (peraturan.go.id)](https://peraturan.go.id/files/pp35-2021bt.pdf) 8 October 2026 [JDIH BPK RI (peraturan.bpk.go.id)](https://peraturan.bpk.go.id/Details/246523/uu-no-6-tahun-2023) 8 October 2026

**Severance pay = months of wages by service × reason factor × wage. UPMK = months of wages by service × UPMK factor × wage. Total = severance pay + UPMK + entitlement compensation.**

**Severance pay by length of service (PP 35/2021 Article 40(2))**

| Service | Amount |
| --- | --- |
| Under 1 year | 1 month of wages |
| 1 to under 2 years | 2 months of wages |
| 2 to under 3 years | 3 months of wages |
| 3 to under 4 years | 4 months of wages |
| 4 to under 5 years | 5 months of wages |
| 5 to under 6 years | 6 months of wages |
| 6 to under 7 years | 7 months of wages |
| 7 to under 8 years | 8 months of wages |
| 8 years or more | 9 months of wages |

**Long-service pay (PP 35/2021 Article 40(3))**

| Service | Amount |
| --- | --- |
| 3 to under 6 years | 2 months of wages |
| 6 to under 9 years | 3 months of wages |
| 9 to under 12 years | 4 months of wages |
| 12 to under 15 years | 5 months of wages |
| 15 to under 18 years | 6 months of wages |
| 18 to under 21 years | 7 months of wages |
| 21 to under 24 years | 8 months of wages |
| 24 years or more | 10 months of wages |

**Multipliers by dismissal reason (PP 35/2021 Articles 41 to 57)**

| Dismissal reason | Severance pay | UPMK | Separation pay | Article |
| --- | --- | --- | --- | --- |
| Merger, consolidation or split of the company | 1× | 1× | No | Article 41 |
| Takeover of the company | 1× | 1× | No | Article 42(1) |
| Takeover that changes working terms, and you are unwilling to continue | 0.5× | 1× | No | Article 42(2) |
| Redundancy because the company is making losses | 0.5× | 1× | No | Article 43(1) |
| Redundancy to prevent losses | 1× | 1× | No | Article 43(2) |
| Closure after losses over 2 years | 0.5× | 1× | No | Article 44(1) |
| Closure not caused by losses | 1× | 1× | No | Article 44(2) |
| Closure due to force majeure | 0.5× | 1× | No | Article 45(1) |
| Force majeure without closure | 0.75× | 1× | No | Article 45(2) |
| Debt-payment suspension (PKPU) caused by losses | 0.5× | 1× | No | Article 46(1) |
| PKPU not caused by losses | 1× | 1× | No | Article 46(2) |
| Bankruptcy | 0.5× | 1× | No | Article 47 |
| You asked for dismissal because of the employer's conduct (Article 36 letter g) | 1× | 1× | No | Article 48 |
| A dispute tribunal found the employer did not commit that conduct | 0× | 0× | Yes | Article 49 |
| Voluntary resignation (meeting Article 36 letter i) | 0× | 0× | Yes | Article 50 |
| Absent 5 working days in a row after 2 summons | 0× | 0× | Yes | Article 51 |
| Breach of contract or company rules after a first, second and third warning letter | 0.5× | 1× | No | Article 52(1) |
| Serious violation defined in the contract, company regulations or collective agreement | 0× | 0× | Yes | Article 52(2) |
| Detained 6 months over an alleged crime that harmed the company | 0× | 0× | Yes | Article 54(1) |
| Detained 6 months over an alleged crime that did not harm the company | 0× | 1× | No | Article 54(2) |
| Prolonged illness or work-accident disability beyond 12 months | 2× | 1× | No | Article 55(1) and (2) |
| Reaching retirement age | 1.75× | 1× | No | Article 56 |
| Death of the worker (paid to the heirs) | 2× | 1× | No | Article 57 |

## Is the severance table a ceiling or a floor?

A floor. Constitutional Court ruling 168/PUU-XXI/2023, pronounced on 31 October 2024, held that the phrase "given as follows" in the severance table of Article 156(2) of the Manpower Law, as amended by Law 6/2023, must be read as "at least". Employers must pay at least the table amount, and a larger amount is lawful.

[Mahkamah Konstitusi RI](https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_11215_1730375514.pdf) 8 October 2026

## Which wage is used to calculate severance?

Basic wage plus fixed allowances paid to the worker and family (Article 157 of Law 13/2003 as amended by Law 6/2023). For daily pay, the monthly wage is 30 times the daily wage. For piece rates, it is the average of the last 12 months, and if that is below the minimum wage, the minimum wage where the company is based applies.

[JDIH BPK RI (peraturan.bpk.go.id)](https://peraturan.bpk.go.id/Details/246523/uu-no-6-tahun-2023) 8 October 2026

## How is compensation for fixed-term (PKWT) workers calculated?

Employers must pay compensation when a PKWT ends to workers with at least 1 month of continuous service (PP 35/2021 Article 15). A contract of 12 months earns 1 month's wage, and shorter or longer contracts are pro rata: months of service divided by 12, times 1 month's wage (Article 16). The basis is basic wage plus fixed allowances.

[Kementerian Hukum RI (peraturan.go.id)](https://peraturan.go.id/files/pp35-2021bt.pdf) 8 October 2026

- If the contract is ended early, compensation covers the period already worked (PP 35/2021 Article 17).
- In micro and small businesses, compensation is set by agreement (Article 16(6)). Compensation does not apply to foreign workers.

**PKWT compensation**

| Contract period counted | Calculation | Result |
| --- | --- | --- |
| 6 months | 6/12 × IDR 5,729,876 | IDR 2,864,938 |
| 12 months | 12/12 × IDR 5,729,876 | IDR 5,729,876 |
| 18 months | 18/12 × IDR 5,729,876 | IDR 8,594,814 |

## What does a severance calculation look like?

Example: 10 years 4 months of service, dismissal for redundancy because the company is making losses (PP 35/2021 Article 43(1)), entitlement compensation not yet included.

Example figure: the 2026 DKI Jakarta UMP, used only as a sample wage. [Kementerian Ketenagakerjaan (Satudata Kemnaker)](https://satudata.kemnaker.go.id/data/kumpulan-data/3005) 7 October 2026

**Worked severance example**

| Item | Calculation | Result |
| --- | --- | --- |
| Severance pay (pesangon) | 9 × 0.5 × IDR 5,729,876 | IDR 25,784,442 |
| Long-service pay (UPMK) | 4 × 1 × IDR 5,729,876 | IDR 22,919,504 |
| Minimum total |   | IDR 48,703,946 |

## What can you do if you disagree with the dismissal or the severance?

The employer must give written notice of dismissal at least 14 working days in advance, or 7 working days during probation. If you reject it, send a written rejection with your reasons within 7 working days of receiving the notice (PP 35/2021 Articles 37 and 39). Disagreements go to bipartite negotiation. If that brings no agreement, the dismissal can take effect only after a final and binding decision of the industrial relations dispute body, and until that process ends the employer and the worker must each keep meeting their obligations (Constitutional Court ruling 168/PUU-XXI/2023).

[Kementerian Hukum RI (peraturan.go.id)](https://peraturan.go.id/files/pp35-2021bt.pdf) 8 October 2026 [Mahkamah Konstitusi RI](https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_11215_1730375514.pdf) 8 October 2026

## What can you do if you are not paid what you are owed?

Start by asking your employer in writing. Law 2/2004 requires a dispute to go first through bipartite negotiation, for at most 30 working days. If that fails, register the dispute with the district or city manpower office, with proof of those talks. A rights dispute, such as unpaid overtime, goes to mediation; a dismissal dispute goes to mediation or conciliation. If there is no agreement, the case can be filed with the Industrial Relations Court (Law 2/2004 Articles 4 and 5).

[Kementerian Hukum RI (peraturan.go.id)](https://peraturan.go.id/files/uu2-2004.pdf) 8 October 2026

1. Gather evidence: your employment contract, payslips, attendance records and messages or letters from the company.
2. Send your employer a written request and keep a copy (bipartite negotiation).
3. If there is no agreement within 30 working days, register the dispute with the district or city manpower office.
4. You can also complain to the Ministry of Manpower (Kemnaker) through its official channels below.

- **Kemnaker help centre and call centre** [1500630](tel:1500630) [bantuan.kemnaker.go.id](https://bantuan.kemnaker.go.id/)

[Guide to labour dispute mediation](https://kariraman.com/en/workers-rights/labour-dispute-mediation/)

## What are the limits of this severance calculator?

- The calculator does not include separation pay, tax or BPJS Ketenagakerjaan benefits.
- If your employer enrolled you in a pension programme, employer contributions may count toward severance and UPMK, and the employer pays any shortfall (PP 35/2021 Article 58).
- Work out the value of leave and travel home for entitlement compensation yourself, from your contract and company regulations.
- For an estimate of tax on severance, use the Panduan Warga severance calculator below.

Severance and fixed-term compensation rules, version 2021.1, checked 8 October 2026.

## Related guides

- [**Severance pay and dismissal in Indonesia: your rights, the tables and the lawful procedure**](https://kariraman.com/en/workers-rights/severance-pay-and-dismissal/)
- [**PKWT vs PKWTT: fixed-term and permanent employment contracts in Indonesia**](https://kariraman.com/en/workers-rights/pkwt-pkwtt-employment-contracts/)
- [**Labour dispute mediation in Indonesia: bipartite talks, the labour office and court**](https://kariraman.com/en/workers-rights/labour-dispute-mediation/)
- [**Free legal aid for workers in Indonesia: who qualifies and how to apply**](https://kariraman.com/en/workers-rights/free-legal-aid/)
- [**THR calculator**](https://kariraman.com/en/tools/thr-calculator/)
- [**Overtime pay calculator**](https://kariraman.com/en/tools/overtime-pay/)
- [**Minimum wage check**](https://kariraman.com/en/tools/minimum-wage-check/)
- [**Net salary calculator: work out BPJS and PPh 21 deductions from your pay**](https://kariraman.com/en/tools/take-home-pay/)
- [**Minimum wage**](https://kariraman.com/en/minimum-wage/)

**Calculators on Panduan Warga**

- [Panduan Warga severance calculator](https://panduanwarga.org/en/calculators/severance-pay/)
- [Panduan Warga guide to claiming JKP after job loss](https://panduanwarga.org/en/guides/claim-jkp-after-job-loss/)

CariTalent and PanduanHewan are Kode Nirlaba projects; Panduan Warga and The Cast Index are independent publications with the same founder. CourseToJob is a study-guide site with the same owner, run by Elite Digital AI Solutions Ltd.

## Sources

The facts on this page come from these sources. Dates show when we opened them.

1. [Peraturan Pemerintah Nomor 35 Tahun 2021 tentang PKWT, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja](https://peraturan.go.id/files/pp35-2021bt.pdf) Kementerian Hukum RI (peraturan.go.id) · PP 35/2021 · accessed 8 October 2026
2. [Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Perppu 2/2022 tentang Cipta Kerja menjadi Undang-Undang (Pasal 81 angka 47 dan 48: Pasal 156 dan 157 UU 13/2003)](https://peraturan.bpk.go.id/Details/246523/uu-no-6-tahun-2023) JDIH BPK RI (peraturan.bpk.go.id) · UU 6/2023 Pasal 81 angka 47 dan 48 · accessed 8 October 2026
3. [Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023](https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_11215_1730375514.pdf) Mahkamah Konstitusi RI · accessed 8 October 2026
4. [Undang-Undang Nomor 2 Tahun 2004 tentang Penyelesaian Perselisihan Hubungan Industrial](https://peraturan.go.id/files/uu2-2004.pdf) Kementerian Hukum RI (peraturan.go.id) · UU 2/2004 · accessed 8 October 2026
5. [DPR Sahkan UU Pelindungan Ketenagakerjaan (emedia DPR RI, 7 Oktober 2026)](https://emedia.dpr.go.id/news/2026/10/07/dpr-sahkan-uu-pelindungan-ketenagakerjaan-dasco-kado-terindah-untuk-buruh) Dewan Perwakilan Rakyat RI (emedia) · accessed 7 October 2026
6. [Menaker Ungkap Poin Penting UU Pelindungan Ketenagakerjaan yang Wajib Diketahui Pekerja](https://kemnaker.go.id/news/detail/menaker-ungkap-poin-penting-uu-pelindungan-ketenagakerjaan-yang-wajib-diketahui-pekerja) Kementerian Ketenagakerjaan RI · accessed 7 October 2026
7. [Satudata Kemnaker: Upah Minimum Provinsi (UMP) Tahun 2026 (dataset 3005)](https://satudata.kemnaker.go.id/data/kumpulan-data/3005) Kementerian Ketenagakerjaan (Satudata Kemnaker) · accessed 7 October 2026
8. [JDIH DKI Jakarta: Keputusan Gubernur Nomor 1142 Tahun 2025 tentang Upah Minimum Provinsi Tahun 2026](https://jdih.jakarta.go.id/dokumen/detail/14763) JDIH Provinsi DKI Jakarta · Kepgub DKI 1142/2025 · accessed 7 October 2026
9. [Kemnaker: Wamenaker apresiasi paket kebijakan kesejahteraan pekerja DKI pascapenetapan UMP 2026](https://kemnaker.go.id/news/detail/wamenaker-apresiasi-paket-kebijakan-kesejahteraan-pekerja-dki-pascapenetapan-ump-2026-bisa-dicontoh-oleh-daerah-lain) Kementerian Ketenagakerjaan · accessed 7 October 2026
10. [Satudata Kemnaker: Upah Minimum Provinsi (UMP) Tahun 2025 (dataset 2252)](https://satudata.kemnaker.go.id/data/kumpulan-data/2252) Kementerian Ketenagakerjaan (Satudata Kemnaker) · accessed 7 October 2026
11. [PP 49/2025 tentang Perubahan Kedua atas PP 36/2021 tentang Pengupahan, Pasal II (ketentuan peralihan upah minimum 2026)](https://peraturan.go.id/files/pp-no-49-tahun-2025.pdf) Kementerian Hukum RI (peraturan.go.id) · PP 49/2025 Pasal II · accessed 7 October 2026

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