Interns and part time staff

The situation

Pay to interns and part time workers is income for PPh 21. Non permanent workers paid daily or monthly use the rules for non permanent workers.

The law

• Art 21, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Employers withhold tax on wages and other pay to resident individuals; the rate is 20 percent higher for payees without an NPWP
• PMK 168/2023 on Article 21 and 26 withholding: Procedures for PPh 21 and 26 on employment and other pay, including TER categories A, B and C and the year end recalculation

What it means for you

Small amounts below the daily threshold may have nil tax, but slips may still be needed. Check the PMK 168/2023 rules for daily paid workers. Example: monthly allowance IDR 2 million is below PTKP levels, so tax is likely nil.

What to do

1. Classify the worker type.
2. Apply the right TER table.
3. Issue slips where required.
4. Include them in the monthly return.

Leaving interns out of payroll records can surprise auditors.

Related

• Paying a freelancer as an individual
• Employee leaving mid year
• TER category for a married employee
• Employee without a valid NIK or NPWP
• Government borne PPh 21 in 2026
• Late payroll tax payment