Understanding the distinctions between a Fixed-Term Contract (PKWT) and a Permanent Contract (PKWTT) in Indonesia is essential for both employers and employees. Here’s a comprehensive breakdown of their differences, particularly regarding compensation and contractual obligations:
Contract periods can be 3, 6, 9, or 12 months.
Employees receive compensation upon the contract's maturity.
No probation period is required.
PKWT can be renewed upon expiration.
A probation period of 3 months is standard.
Termination: If the contract ends due to termination, the company must pay severance pay and UPH (unused annual leave, costs, expenses, and other stipulated compensations).
Resignation: If the contract ends due to resignation, the company must pay a service reward and UPH.
< 1 year: 0
1 to < 2 years: 0
2 to < 3 years: 0
3 to < 4 years: 2 months' wages
4 to < 5 years: 2 months' wages
5 to < 6 years: 2 months' wages
6 to < 7 years: 3 months' wages
7 to < 8 years: 3 months' wages
8 to < 9 years: 4 months' wages
9 to < 12 years: 5 months' wages
12 to < 15 years: 6 months' wages
15 to < 18 years: 7 months' wages
18 to < 21 years: 8 months' wages
21 to < 24 years: 10 months' wages
> 24 years: 10 months' wages
Easy to start,
intuitive to use