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General Guidelines for Staff Salaries

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Download the latest Salary Survey - published by the American Women's Association in November 2008

Other compensation/benefits:

Food allowance

In addition to salary some employers provide a food allowance, or will provide basic food items such as rice, sugar, tea, coffee and oil. However, many choose to simply work this into the salary, so that the staff is responsible for their own food purchases. This method seems to work with fewer headaches and misunderstandings.

Transportation

Transportation expenses for live out staff may be given in addition to the salary. The average given depends on how many buses the servant has to take to and from your home.

Medical

Reimbursements for doctors or medicine are strictly up to you. It has been the general practice amongst most expatriate employers to reimburse some medical expenses for the staff member but not necessarily for his/her family members.

Trial period

If you choose to do so, let the potential employee know that he or she would initially work for a trial period of time, normally two to three months, after which both parties may decide if the arrangement is working out. A salary lower by at least Rp 50.000 might be paid during the triaal period.

Pay periods

Staff are usually paid every two weeks. But once a month is accepted as well. Make sure arrangements are agreed upon and understood by both parties.

Overtime

If an employee works past normal hours, for example during a dinner party, paying overtime wages would be customary. This is also true for the Indonesian official public holidays. If a servant chooses to work during a public holiday, he or she should be compensated for this.

Vacation

Household staff are entitled to a paid vacation period each year. This vacation usually falls over the Lebaran holiday period (see below). The timing and scheduling of this and any other vacation period that you choose to offer also depends upon your own personal schedule and needs, so this should be discussed and mutually agreed upon as well. This is especially important if Lebaran is just a few months away, even though they haven't been working for you for a year, they will still expect to take vacation over the holidays. The amount that is paid may be pro-rated from the total time taken.

Living arrangements

Decide which staff, if any, will live in or out. If live in, what kind of arrangements will you have for them? Will they share a room or have a private room?

Health checks

Health checkups are the responsibility of the employer. It is recommended they be provided through reliable doctors and laboratories and the prospective staff member be checked for for hepatitis, tuberculosis and typhoid, or other communicable diseases prior to employment, especially if they will be handling food.

Uniforms

It is standard practice to provide either a uniform or a work clothing allowance for employees, with perhaps the exception of night guards. Uniforms are available at Kem Chicks or Hero's. They are durable and come in a variety of colors and styles. It is recommended that uniforms be provided only after the trial period.

Loans

Loaning money to staff is NOT recommended. Should you decide to do so it is advised that you loan money:
  1. only after staff has worked satisfactorily for you for at least 6 months.
  2. that no more than 1 month's base salary be loaned at a time.
  3. that an agreed payback schedule is worked out in writing.
  4. that any previous loans have been repaid in full.

Lebaran/THR Bonus

It is standard practice to give a one month's salary bonus to household staff regardless of religion after one year's employment. This practice is required by Indonesian law, and is referred to as THR (tunjuangan hari raya). If your staff has been working for less than 9 months the bonus is usually pro-rated. This bonus is given to staff, at the latest, 2 weeks before Lebaran/Idul Fitri to be used for expenses relating to the holiday. The recommended time off for Idul Fitri is from 2 days to 2 weeks, depending on the distance needed to travel.

Lebaran is the celebration at the end of the holy month of Ramadhan for those of the Moslem faith. This is a very special time for Indonesians where it is the custom to give gifts of money and clothing. Although it is called a bonus it is not only customary but, by law, all employees are entitled by law to receive the equivalent of a full month's salary as a yearly bonus at this time. Many domestic helpers choose this time to return to their villages to celebrate the holiday with family. The bonus is very important, as most Indonesians do not manage a savings account and use the bonus to cover holiday shopping and tickets home. In the case of employing a Christian servant, you would compensate at the time of the Christmas holidays in the same manner.

Household utensils

It is recommended that the employer supply the entire staff with their own eating, drinking and cooking utensils, as well as linens. This helps ensure the health and well being of the entire household.

Incidentals

Some expatriate employers choose to provide toiletries or used clothing for their household staff.

Starting Date

If all goes well, everyone should agree upon the starting date.

Probation period

If you choose to do so, let the potential employee know that he or she would initially work for a trial period of time, normally two to three months, after which both parties may decide if the arrangement is working out.

Severance Pay

It is standard practice to provide the equivalent of one month's salary for each full year of service to an employee when you leave the country and no longer require his or her services or in the event of termination.

This article was compiled from information provided by the AWA, JICC Staff Registry , Colliers International and expat website volunteers.


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