Final employee settlement on closure
Karyawan harus dapat pesangon kalau PT tutup?
The situation
Yes. Termination due to closure gives severance under labour rules, depending on the reason and service length.
The law
- Art 42, Law 13/2003 on Manpower, as amended by Law 6/2023: An employer of a foreign worker must have an approved foreign worker utilisation plan (RPTKA)
- Art 14 and 15, Law 24/2011 on BPJS: Every person, including a foreigner working at least 6 months in Indonesia, must join; employers must register their workers and pay contributions
What it means for you
Compute severance, pay outstanding wages, close BPJS memberships and issue tax slips. Termination pay bears final PPh 21 under its own rules. Example: a worker with 5 years' service is entitled to severance under the current formula in the labour rules.
What to do
- List employees.
- Compute severance.
- Pay and withhold tax.
- Close BPJS.
Unpaid severance can be claimed against the company.
We can do this for youClosing a company: dissolution, liquidation, NPWP removal, and closing OSS and BPJS: IDR 25.000.000