Pesangon Calculator (Indonesia severance pay, 2026)
Indonesian severance = uang pesangon (1 month's wage under 1 year of service, rising to 9 months from 8 years) plus a long-service award (UPMK: 2 months from 3 years, rising to 10 months from 24 years), under Government Regulation No. 35 of 2021. The severance part is multiplied by 0.5 to 2 depending on the reason. Resigning employees get neither.
· Calculated with AiStaffo
The rules in Indonesia
| Law | Government Regulation (PP) No. 35 of 2021, Article 40 (amounts) and Articles 41 to 57 (reasons); Law No. 13 of 2003 as amended by Law No. 6 of 2023 (Job Creation) |
|---|---|
| Wage used | Basic wage plus fixed allowances. Daily-paid: 30 × daily wage |
| Severance (uang pesangon) | Under 1 year: 1 month. Then 1 extra month for each further year: 1 to under 2 years: 2 months … 7 to under 8 years: 8 months. 8 years or more: 9 months |
| Long-service award (UPMK) | 3 to under 6 years: 2 months. 6–9: 3. 9–12: 4. 12–15: 5. 15–18: 6. 18–21: 7. 21–24: 8. 24 years or more: 10 months |
| 1 × severance + UPMK | Efficiency to prevent losses, closure not due to losses, merger, consolidation or split where either side does not continue, takeover, debt-payment postponement not due to losses, worker's request over employer misconduct |
| 0.5 × severance + UPMK | Takeover that changes working terms and the worker does not continue, efficiency or closure due to losses, bankruptcy, closure by force majeure, debt-payment postponement due to losses, breach of work rules after warning letters |
| 0.75 × severance + UPMK | Force majeure without closing the company |
| 1.75 × severance + UPMK | Retirement |
| 2 × severance + UPMK | Death, or long illness or work-accident disability beyond 12 months |
| Not entitled | Resignation, absence 5+ days after two summonses, urgent violations: only compensation of rights (UPH) and separation money (uang pisah) under the company rules |
| Always added | Compensation of rights (UPH): unused annual leave and travel back to the place of hire, not included in the calculator |
Worked example
Wage Rp 10.000.000 a month (basic + fixed allowances), 7 years and 3 months of service. Severance for 7 to under 8 years: 8 months = Rp 80.000.000. Long-service award for 6 to under 9 years: 3 months = Rp 30.000.000.
Efficiency to prevent losses (1×): Rp 110.000.000. Efficiency due to losses (0.5×): Rp 40.000.000 + Rp 30.000.000 = Rp 70.000.000. Retirement (1.75×): Rp 140.000.000 + Rp 30.000.000 = Rp 170.000.000.
New labour law passed in October 2026
On 6 October 2026 the House of Representatives (DPR) passed the Labour Protection Law (UU Pelindungan Ketenagakerjaan). The Minister of Manpower said the 0.5 severance factor will no longer apply and severance will be at least 1 × the table. The law still has to be promulgated and is reported to apply after a transition period, and a government regulation on a severance reserve fund is being prepared. Until it takes effect, PP 35/2021 governs, and the calculator follows it. We will update this page when the new rules apply.
Resignation and separation money
An employee who resigns with proper notice gets no severance or long-service award, only compensation of rights (unused leave and travel home) and separation money (uang pisah), whose amount is set in the employment agreement, company regulation or collective agreement.
For employers: gratuity is one line of what a role costs
Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.
Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.
Sources
Questions people ask
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