Severance pay (UP) table
| Service | UP |
|---|---|
| < 1 year | 1 month's wage |
| 1 – < 2 years | 2 months |
| … | +1 month per year |
| 8 years or more | 9 months |
Long-service pay (UPMK) table
| Service | UPMK |
|---|---|
| 3 – < 6 years | 2 months |
| 6 – < 9 years | 3 months |
| 9 – < 12 years | 4 months |
| 12 – < 15 years | 5 months |
| 15 – < 18 years | 6 months |
| 18 – < 21 years | 7 months |
| 21 – < 24 years | 8 months |
| 24 years or more | 10 months |
Multipliers by reason
| Reason | UP | UPMK |
|---|---|---|
| Efficiency to prevent losses | 1× | 1× |
| Efficiency due to losses | 0.5× | 1× |
| Company closed, not due to losses | 1× | 1× |
| Company closed due to losses / bankrupt | 0.5× | 1× |
| Retirement | 1.75× | 1× |
| Death / prolonged illness | 2× | 1× |
| Resignation | – | – |
Frequently asked questions
What is the legal basis for severance pay?
The Job Creation Law and Government Regulation 35/2021 on fixed-term work, outsourcing, working hours and termination.
Do employees who resign get severance?
No, but they are entitled to compensation of rights and separation pay under their contract or company rules.
Is severance pay taxed?
Yes, severance is subject to final PPh 21 at tiered rates (0% on the first Rp50 million).
Results are simulations to help planning and may differ from official calculations by agencies, employers or banks. Last updated 2026-11-02.