Introduction
Expanding your business into Indonesia means understanding not only its market potential but also its complex labor laws. One of the most essential aspects of employment regulation is maternity leave, especially for companies that prioritize employee welfare and gender equality in the workplace.
This article provides an in-depth explanation of maternity leave in Indonesia and offers guidance for global companies looking to stay compliant while hiring in the country. We also explore how Employer of Record (EOR) services from CPT Corporate can simplify your business operations and HR compliance.
What Is Maternity Leave in Indonesia?
In Indonesia, maternity leave is a legal right protected under Law No. 13 of 2003 on Manpower (often referred to as the Labor Law). The regulation clearly defines the duration, eligibility, and benefits that female employees are entitled to when preparing for and recovering from childbirth.
Duration of Maternity Leave
According to Article 82 of the Labor Law:
– Female employees are entitled to 1.5 months of maternity leave before childbirth, and
– 1.5 months after childbirth, for a total of approximately 3 months of paid leave.
However, this period can be adjusted based on medical recommendations. If a certified doctor or midwife provides a letter stating that longer leave is necessary, the employer is required to comply.
Extended Maternity Leave Under UU KIA
A more progressive provision is introduced through UU KIA (Law No. 4 of 2023). According to Article 4 paragraph (3) letter a, working mothers have the right to:
– A minimum of 3 months of maternity leave, and
– An extension of up to 6 months, particularly for health-related recovery needs or special child care considerations.
This law supports better postpartum care and early childhood development during the first 1,000 days of life, aligning with WHO and global health best practices.
Paid Leave and Employment Protection
Throughout the maternity leave, the employee must receive full wages. Moreover, employers are strictly prohibited from terminating the employment of a woman solely because she is pregnant or taking maternity leave. This is in line with Article 153 of the Labor Law, which protects workers from discriminatory dismissal.
Article 84 of the Manpower Law, in conjunction with Article 5 paragraph (2) of the UU KIA, guarantees that women taking maternity leave retain the right to wages. Here’s how salary calculation for maternity leave works:
– 100% of regular wages for the first 3 months,
– 100% of wages for the fourth month (if leave is extended),
– 75% of wages for the fifth and sixth months (if further extended under medical or caregiving needs).
Why Understanding Maternity Leave Matters for Global Companies
Multinational corporations, startups, and remote-first companies entering Indonesia must align their policies with local employment laws. Failing to do so can lead to:
– Legal risks and penalties
– Damage to employer brand reputation
– Higher attrition due to non-compliance or inadequate employee support
Furthermore, understanding maternity leave obligations allows foreign companies to demonstrate inclusivity and care toward their Indonesian employees, which is a key factor in talent acquisition and retention.
Common Pitfalls for Foreign Employers
Foreign employers may mistakenly apply their home country standards to Indonesian hires. For example:
– Offering shorter maternity leave than mandated
– Using independent contractor models to avoid compliance
– Not issuing proper medical benefits during the maternity period
– Such practices may not only violate local laws but also risk long-term operational hurdles, including employee lawsuits and regulatory sanctions.
How CPT Corporate Simplifies Compliance with Maternity Leave Regulations
This is where CPT Corporate can play a critical role. As a trusted Employer of Record (EOR) in Indonesia, CPT Corporate manages legal employment responsibilities on behalf of global businesses.
What is an Employer of Record (EOR)?
An Employer of Record is a third-party entity that legally employs your workers in a foreign country, handling everything from payroll and benefits to tax compliance and labor regulations—including maternity leave.
With CPT Corporate acting as your EOR, you can:
– We handle the complexities of recruitment, onboarding, and employment contracts while you focus on finding the right talent.
– Avoid legal risks due to non-compliance
– Focus on scaling your core business while CPT handles the complex HR backend
– Offer professional employee care without establishing a local legal entity
This comprehensive service provides peace of mind for foreign companies and ensures a smooth experience for Indonesian employees.
Recommendations for Global Employers
To effectively navigate maternity leave laws in Indonesia, companies should:
– Partner with a local EOR provider like CPT Corporate to manage HR compliance.
– Review internal policies to ensure they don’t conflict with Indonesian labor law.
– Train HR and legal teams about specific local requirements such as maternity protections, BPJS registration, and tax reporting.
– Offer family-friendly benefits that go beyond minimum compliance—this enhances your brand in the eyes of local talent.
Conclusion: Maternity Leave Compliance Made Easy with CPT Corporate
Maternity leave is more than a legal obligation—it’s a reflection of how companies value their employees. For global businesses entering Indonesia, respecting this regulation is critical not just for compliance, but also for building a responsible and attractive employer brand.
Partnering with CPT Corporate’s Employer of Record services means you never have to worry about overlooking local laws. From maternity leave to payroll and employee onboarding, CPT Corporate ensures that your international hiring is seamless, compliant, and employee-friendly.
Ready to Hire in Indonesia with Full Legal Compliance?
Let CPT Corporate be your trusted Employer of Record. Ensure your team receives proper maternity leave and all statutory benefits—without the legal headaches.
