Check a job ID (Baca halaman ini dalam bahasa Indonesia)

Unpaid, late or underpaid wages in Indonesia: your rights and where to report

Written by KarirAman editorial team Approved by Kaiser Khan (editor), Updated

Rules on late wages, deductions, pay below Indonesia’s minimum wage and pay withheld on resigning. Understand your rights and how to report unpaid wages.

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); Kementerian Ketenagakerjaan RI

Summary

  • Employers must pay wages at the agreed time, and the pay period may not be longer than one month (Government Regulation 36/2021, Article 55).
  • An employer who pays late is fined from the fourth day, and the fine does not cancel the duty to pay the wages (Article 61).
  • Employers may not pay below the minimum wage (Law 13/2003, Article 88E(2), as amended by Law 6/2023).
  • Articles 63 and 64 of Government Regulation 36/2021 regulate wage deductions. Article 65 caps the combined deductions referred to in Article 63.
  • Wages paid late for 3 months in a row let the worker apply for termination with severance pay (Government Regulation 35/2021, Articles 36 and 48).
Show the full summaryShow less
On this page
  1. When must wages be paid, and when are they late?
  2. What is the fine for an employer who pays wages late?
  3. Is it legal to pay below the minimum wage in Indonesia?
  4. Can my employer cut my pay for lateness or withhold my last salary when I resign?
  5. My employer has not paid my wages. Where do I report it?
  6. Can I report unpaid wages to the police?
  7. What are my rights if my wages have not been paid for months?
  8. What happens to unpaid wages if the company goes bankrupt?
  9. How much is the late-payment fine under Government Regulation 36/2021?
  10. How much can an employer deduct from my pay?
  11. How should I prepare evidence before reporting?

When must wages be paid, and when are they late?

Wages must be paid at the time agreed between the employer and the worker (Government Regulation 36/2021, Article 55(1)). They may be paid daily, weekly or monthly, but the pay period may not exceed one month (Article 55(3) and (4)). Wages must be paid in full for every period and on every payment date (Article 54(2)). So pay is late as soon as the date in the employment contract, company regulation or collective agreement has passed. If that date falls on a holiday, the same documents decide what happens (Article 55(2)).

What is the fine for an employer who pays wages late?

Article 61 of Government Regulation 36/2021 sets a staged fine for employers who pay wages late or not at all. It is counted per day of delay as a share of the wages due, from the fourth to the eighth day, then an extra daily fine after the eighth day with a cap for the month, and after one month interest at the highest state-bank rate is added. The rates are in the table below. The fine does not cancel the employer's duty to pay your wages (Article 61(2)). Article 88A(6) of Law 13/2003, as amended by Law 6/2023, is the legal basis for this fine.

Is it legal to pay below the minimum wage in Indonesia?

No, for workers who must be paid the minimum wage. Indonesia sets a provincial minimum wage (UMP) and, in many districts and cities, a higher district minimum wage (UMK). Article 88E(2) of Law 13/2003, as amended by Law 6/2023, bans paying below the minimum wage. The minimum wage applies to workers with less than one year of service; longer-serving workers are paid according to the company's wage structure and scale (Government Regulation 36/2021, Article 24). Micro and small businesses are exempt and set wages by agreement within limits (Article 36). Check the official figure for your area on KarirAman's minimum wage pages.

Can my employer cut my pay for lateness or withhold my last salary when I resign?

Article 63 of Government Regulation 36/2021 regulates deductions for: fines, compensation for damage, wage advances, rent of company housing or goods, the worker's debts and overpaid wages. A fine for arriving late is valid only if the employment contract, company regulation or collective agreement states it expressly (Articles 59 and 63(2)). Article 63 deductions are capped together per wage payment (Article 65); Article 64 separately regulates third-party deductions. Government Regulation 36/2021 gives no ground for withholding wages because a worker resigns; wages must still be paid in full on their payment date (Article 54(2)).

My employer has not paid my wages. Where do I report it?

Start by asking for payment in writing and requesting a bipartite negotiation with the employer; Law 2/2004, Article 3, makes this step compulsory and limits it to 30 working days. If it fails, register the rights dispute with the district or city labour office (Disnaker) with proof of the bipartite talks, and a Disnaker mediator will handle it (Articles 4 and 8). You can also complain to the labour inspectorate; administrative sanctions under Government Regulation 36/2021 follow an inspector's examination, including one started by a complaint (Article 80(2)). Keep your contract, payslips, bank statements and messages about pay.

Can I report unpaid wages to the police?

Yes. Article 185 of Law 13/2003, as amended by Law 6/2023, makes breaching the duty to pay wages as agreed (Article 88A(3)) and the ban on paying below the minimum wage (Article 88E(2)) a criminal offence. After the adjustment by Law 1/2026, the penalty is up to 4 years in prison and/or a fine. A criminal report goes to the police, and an employer may not dismiss a worker for reporting the employer's crime to the authorities (Article 153(1)(h)). To recover the unpaid wages themselves, the route is still the bipartite negotiation followed by mediation at Disnaker, so both routes can run at the same time.

What are my rights if my wages have not been paid for months?

If wages have not been paid on time for 3 or more months in a row, you may apply for termination because of the employer's conduct, even if the employer later pays on time (Government Regulation 35/2021, Article 36(g)(3), and Law 13/2003, Article 154A, as amended by Law 6/2023). In a termination for this reason you are entitled to severance pay and long-service pay at one times the statutory scale each, plus compensation for rights (Government Regulation 35/2021, Article 48). The unpaid wages must still be paid.

What happens to unpaid wages if the company goes bankrupt?

Unpaid wages and other worker rights are debts that must be paid first (Government Regulation 36/2021, Article 49(1)). Wages are paid before all creditors (Article 49(2)). The worker's other rights rank ahead of all creditors except secured creditors, and since Government Regulation 49/2025 Article 49(3) states that preferred creditors also rank behind them. Lodge your wage claim with the receiver (kurator) and ask a union or a legal aid service for help.

How much is the late-payment fine under Government Regulation 36/2021?

The late-payment fine is a share of the wages that should have been paid, and it grows with every day of delay. The table shows the rates in Article 61(1) of Government Regulation 36/2021. After one month, interest at the highest rate charged by state banks is added. The fine does not cancel the duty to pay the wages.

Fines for late payment of wages under Government Regulation 36/2021, Article 61
MeasureFigurePeriod
Cap on the late-payment fine within one month, as a share of the wages due (after one month, interest at the highest state-bank rate is added)50%8 October 2026
Fine per day of delay from the fourth to the eighth day after wages were due, as a share of the wages that should have been paid5%8 October 2026
Extra fine per day of delay after the eighth day, on top of the fine for days four to eight1%8 October 2026

Kementerian Hukum RI (peraturan.go.id)

How much can an employer deduct from my pay?

Article 65 of Government Regulation 36/2021 caps the combined deductions referred to in Article 63 per wage payment. Rent and debt deductions need a written agreement (Article 63(3)). Article 64 separately regulates third-party deductions, which generally need a revocable power of attorney. Statutory payments to the state and social-security contributions are exempt from that authorisation requirement (paragraph (3)).

Cap on Article 63 deductions under Government Regulation 36/2021, Article 65
MeasureFigurePeriod
Combined cap on deductions referred to in Article 63, as a share of each wage payment50%8 October 2026

Kementerian Hukum RI (peraturan.go.id)

How should I prepare evidence before reporting?

Evidence of unpaid wages makes negotiation and complaints faster. Prepare:

  1. Your employment contract or appointment letter showing the wage and the payment date.
  2. Payslips and bank statements for recent months.
  3. A record of the dates wages were due and the dates you actually received them.
  4. The payment requests and bipartite invitations you sent, and the company's replies.
  5. The company's name and address; check the company name on AHU Online before you complain.

If the company refuses to give you wage information that exists only in its own records, you may ask the labour inspectorate for help (Government Regulation 36/2021, Article 52). You can compare your pay with the official figure using the minimum wage check, and the dispute procedure is explained in labour dispute mediation. Panduan Warga also explains the minimum wage formula: Panduan Warga minimum wage guide.

Not legal advice. For your own case, contact the official channels listed.

Frequently asked questions

My salary is one day late. Is my employer already fined?

Not yet. Under Article 61(1) of Government Regulation 36/2021 the late-payment fine starts on the fourth day after the date wages were due. A delay of one to three days still breaks the duty to pay at the agreed time (Article 55(1)), so note the dates and ask for payment in writing.

Can my employer pay my salary in instalments?

Article 54(2) of Government Regulation 36/2021 says wages must be paid in full for every period and on every payment date. Paying part of the salary means the rest is late, and that remainder counts towards the late-payment fine in Article 61.

Does my employer have to give me a payslip?

Yes. Article 53(2) of Government Regulation 36/2021 requires a proof of payment showing the wage details every time wages are paid. Employers who do not provide it can face staged administrative sanctions (Article 79).

My salary is paid by bank transfer. When does it count as paid?

Wages may be paid in cash or through a bank. If paid through a bank, the money must be available to you on the agreed payment date (Government Regulation 36/2021, Article 57(2)). A transfer that arrives days later means the wages were late.

Who wrote and reviewed this page?

Written by KarirAman editorial team Published Updated

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

Sources

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

  1. DPR Sahkan UU Pelindungan Ketenagakerjaan (emedia DPR RI, 7 Oktober 2026) Dewan Perwakilan Rakyat RI (emedia) · accessed
  2. Menaker Ungkap Poin Penting UU Pelindungan Ketenagakerjaan yang Wajib Diketahui Pekerja Kementerian Ketenagakerjaan RI · accessed
  3. Peraturan Pemerintah Nomor 36 Tahun 2021 tentang Pengupahan (Pasal 40, 52 sampai 65, 79, 80 dan 85) Kementerian Hukum RI (peraturan.go.id) · PP 36/2021 · accessed
  4. Undang-Undang Nomor 6 Tahun 2023 (Pasal 81: perubahan UU 13/2003 tentang cuti, upah, PHK dan pidana) Kementerian Hukum RI (peraturan.go.id) · UU 6/2023 · accessed
  5. Undang-Undang Nomor 1 Tahun 2026 tentang Penyesuaian Pidana (Lampiran I nomor 126 dan 175) JDIH BPK RI (peraturan.bpk.go.id) · UU 1/2026 · accessed
  6. Peraturan Pemerintah Nomor 35 Tahun 2021 (Pasal 17, 36 huruf g dan i, 40 ayat (4), 48 dan 50) Kementerian Hukum RI (peraturan.go.id) · PP 35/2021 · accessed
  7. Peraturan Pemerintah Nomor 49 Tahun 2025 tentang Perubahan Kedua atas PP 36/2021 tentang Pengupahan (daftar pasal yang diubah) Kementerian Hukum RI (peraturan.go.id) · PP 49/2025 · accessed
  8. Undang-Undang Nomor 2 Tahun 2004 tentang Penyelesaian Perselisihan Hubungan Industrial Kementerian Hukum RI (peraturan.go.id) · UU 2/2004 · accessed
How to cite

KarirAman (2026). Unpaid, late or underpaid wages in Indonesia: your rights and where to report. Updated 8 October 2026. https://kariraman.com/en/workers-rights/unpaid-wages/

Save this page

Report a fake job Report a data problem How we handle corrections

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.