Five progressive layers on annual income, withheld monthly through the TER tables and reconciled every December.
Figures last reviewed
Enter your income details to see your Indonesia tax breakdown
Indonesian personal income tax (PPh 21) uses five progressive layers from 5% to 35%, introduced by UU 7/2021 (the HPP law). The first Rp 60 juta of taxable income is taxed at 5%, and the top 35% layer applies only above Rp 5,000 juta.
Before the layers apply, income is reduced by the PTKP — a personal relief of Rp 54 juta for a single taxpayer with no dependants, rising to Rp 72 juta for someone married with three. Occupational costs (biaya jabatan) of 5% of gross, capped at Rp 6 juta a year, come off as well, along with employee pension and old-age savings contributions.
Since 2024 employers withhold monthly using TER (Tarif Efektif Rata-rata) tables rather than annualising each month, with a full Article 17 reconciliation in December. The monthly figure can therefore differ from one twelfth of the annual bill, and December's payslip is usually the odd one out.
| Taxable income | Rate | Notes |
|---|---|---|
| Rp 0 – Rp 60,000,000 | 5% | |
| Rp 60,000,000 – Rp 250,000,000 | 15% | |
| Rp 250,000,000 – Rp 500,000,000 | 25% | |
| Rp 500,000,000 – Rp 5,000,000,000 | 30% | |
| Rp 5,000,000,000 and above | 35% |
These apply to PKP — income after PTKP, biaya jabatan and pension contributions — not to gross salary. The HPP law widened the first layer from Rp 50 juta to Rp 60 juta and added the Rp 5 billion layer at 35%.
Employer-paid health cover and the accident (JKK) and death (JKM) premiums are benefits in kind and form part of taxable income, so taxable gross is higher than salary. At Rp 20.000.000 a month that adds Rp 7.056.000 a year.
Biaya jabatan of 5% of gross, capped at Rp 6 juta a year, is automatic. Employee JHT at 2% and Jaminan Pensiun at 1% are also deductible. BPJS Kesehatan contributions are not.
Rp 54 juta for TK/0, with Rp 4.5 juta added for marriage and for each dependant up to three. What remains is PKP, the taxable income the layers apply to.
Each layer taxes only the income inside it. At Rp 20.000.000 a month, PKP of Rp 180.990.312 means 5% on the first Rp 60 juta and 15% on the rest — an effective rate on gross of 8.81%.
Through the year the employer applies a flat TER rate to monthly gross, chosen by PTKP category. December recalculates the full annual liability under Article 17 and adjusts, so the last payslip of the year often differs noticeably from the previous eleven.
Single, no dependants (TK/0), standard BPJS enrolment.
| Component | Monthly | Annual |
|---|---|---|
| Gross salary | Rp 20.000.000 | Rp 240.000.000 |
| Add: taxable employer benefits | Rp 588.000 | Rp 7.056.000 |
| Taxable gross | Rp 20.588.000 | Rp 247.056.000 |
| Biaya jabatan | (Rp 500.000) | (Rp 6.000.000) |
| JHT (2%) | (Rp 400.000) | (Rp 4.800.000) |
| Jaminan Pensiun (1%) | (Rp 105.474) | (Rp 1.265.688) |
| PTKP (TK/0) | (Rp 4.500.000) | (Rp 54.000.000) |
| Taxable income (PKP) | Rp 15.082.526 | Rp 180.990.312 |
| PPh 21 | (Rp 1.762.379) | (Rp 21.148.547) |
| BPJS Kesehatan (1%) | (Rp 120.000) | (Rp 1.440.000) |
| Net take-home pay | Rp 17.612.147 | Rp 211.345.765 |
| Effective income tax rate on gross | 8.81% | |
So if your gross salary is Rp 20.000.000 a month in Indonesia, your net take-home pay is about Rp 17.612.147 a month — Rp 211.345.765 over the year. PPh 21 takes Rp 21.148.547, an effective 8.81% of gross, and BPJS contributions take the rest of the difference.
Computed from the same rates and order of operations the calculator uses, including the employer benefits that count as taxable income.
2024
PP 58/2023 replaced the old month-by-month annualisation with flat average effective rates applied to monthly gross, in categories A, B and C by PTKP status. The annual liability is unchanged — only the timing of withholding moved, with December carrying the reconciliation.
2022
The 5% layer was extended from Rp 50 juta to Rp 60 juta of PKP, cutting tax for lower earners, and a fifth layer of 35% was introduced above Rp 5,000 juta.
Five progressive layers: 5% up to Rp 60 juta of taxable income, 15% to Rp 250 juta, 25% to Rp 500 juta, 30% to Rp 5,000 juta, and 35% above that. They apply to PKP, not to gross salary.
PTKP is the annual personal relief deducted before tax. Rp 54 juta for a single person with no dependants (TK/0), plus Rp 4.5 juta for being married and a further Rp 4.5 juta for each dependant up to three — so Rp 72 juta at K/3. Anyone earning below their PTKP pays no income tax.
Because monthly withholding uses a flat TER rate while the actual liability is progressive. December recalculates the whole year under Article 17 and corrects the difference in one go, so it is normal for the final payslip to be higher or lower than the rest.
Employer-paid BPJS Kesehatan premiums and the JKK accident and JKM death cover are treated as benefits in kind and added to taxable income, even though you never see them as cash. Your own JHT and pension contributions come back off again as deductions.
An automatic occupational cost allowance of 5% of gross income, capped at Rp 6 juta a year. No receipts or claims are needed — it is applied for every employee, and anyone earning above Rp 120 juta a year simply receives the cap.
Yes. Religious holiday allowance is taxable income in the month it is paid, which is why the TER rate applied that month often produces a noticeably larger deduction than usual. It is reconciled with everything else in December.
31 March for individuals, covering the previous calendar year. Most employees file using the form 1721-A1 their employer provides, and the return is submitted online through DJP Online.
Take a quick 4-question quiz to find the right one
This helps us recommend the right calculator