The Michael Page Salary Guide 2023 offers comprehensive insights into Indonesia's job market and salary trends. It helps employers make informed hiring and salary decisions, while job seekers can understand their worth and confidently negotiate higher wages.

Indonesia talent workforce insights 2023


Looking for new jobs


Been at their current job for less than 2 years


Keen to change roles, industry, or career

What's inside the report


Stay on top of the changing talent landscape and workforce attitudes.

  • How much you should be paying your talent
  • National and industry insights  
  • How to create the ideal employee experience that retains and attracts top talent 

Employers Guide

Job Seekers

Know your worth and get the pay you deserve.

  • Remuneration benchmark for your role and industry 
  • How to increase your earning potential when switching jobs and upskilling for future roles 

Job Seekers Guide

For Employers: FAQs on Salary

Several factors can influence your salary, including your job function, experience, education level, skill sets, and location.

The demand for your job in the market, the company’s budget and compensation policies, and any collective bargaining agreements can all influence your salary. Additionally, the state of the economy and the industry you work in can also impact on your salary.

Positions that play a critical role in propelling the company’s revenue growth tend to offer a higher earning potential than those that do not involve sales. Additionally, roles requiring specialised skills or extensive experience often have a higher salary than entry-level positions.

Another factor that is taken into consideration is location. Job opportunities in major metropolitan areas offer a more lucrative compensation package than in suburban regions. And finally, the size and financial stability of the company also play a role. Established companies with a solid financial footing tend to offer higher salaries than smaller businesses or startups with less capital.

If you are a hiring manager or employer, and want to ask a job candidate about their salary expectations, it’s important to approach the topic in a professional and respectful manner.

Here are some tips for asking a candidate about their salary expectations:

Provide some context for the question. Explain why you are asking about salary expectations, and how the information will be used.

For example, you might say something like, “As part of the hiring process, we need to ensure that the salary for this position is in line with the budget and compensation policies for the company. Can you tell me what your salary expectations are for this role?”

When asking a candidate about their salary expectations, it's important to be clear and direct in your question. Avoid vague or open-ended questions, and instead ask a specific question about the candidate's desired salary range for the position.

For example, you could say, “What is your desired salary range for this position?” This will provide the candidate with a clear and specific question to answer, and will help facilitate a productive conversation about salary expectations.

It is generally best to wait until the end of the initial job interview, and possibly even until after a second or third interview, before discussing salary expectations.

This allows the hiring manager and the candidate to get to know each other, discuss the job responsibilities and expectations, and determine whether there is a good fit between the candidate's skills and experience and the requirements of the position.

You could also get candidates to write down their expected salary range in the initial application form. This means that candidates can provide their expected salary range upfront, and you can shortlist those who fall within your budget.

Overall, the specific timing of when to discuss salary expectations depends on the individual circumstances of the job interview and the preferences of the hiring manager and the candidate.

Before you begin the negotiation process, it’s important to have a clear understanding of the market value for the position you're hiring for.

Knowing what similar positions are paying in your industry will help ensure that you're offering a competitive salary. Once you have an idea of the going rate, you can start to negotiate with your potential employee.

It's also important to be clear about your budget and what you're willing to pay for the role. If the salary request is significantly higher than what you're prepared to offer, be honest and explain your budget constraints.

You may be able to negotiate other aspects of the job, such as vacation days or flexible work-from-home arrangements, to make up for a lower salary.

The most important thing is to be respectful and professional throughout the negotiation process. Remember that your ultimate goal is to build a great, long-term working relationship with the candidate, so aim to avoid any confrontational language or behaviour.

If you can reach an agreement that both sides are happy with, then you've successfully negotiated a salary for your new employee.

For Job Seekers: FAQs on Salary

If you're in the process of negotiating your pay rate, here are some tips to ensure you get the salary you deserve.

Start by doing your research on the average salary in Indonesia or the medium wage based on your industry, years of experience, qualifications, and other skills relevant to the role.

Websites where employees in Indonesia provide genuine feedback about the company can be helpful when it comes to understanding the average salary of similar roles in the company.

Set ambitious but realistic salary expectations and consider beyond the monthly salary. Other benefits to consider are Tunjangan Hari Raya (THR), healthcare coverage, sign-on-bonus (SOB), annual leave, pension funds (BPJS Ketenagakerjaan or DPLK), and more.

Remember, a well-informed negotiation is a successful one. Download the Michael Page Indonesia Salary Guide 2023 to ensure you're in a strong position to negotiate the best salary for your role.

In addition to salary, there are several benefits and perks that employers in Indonesia often offer to their employees.

Health insurance is a common benefit, which can cover medical expenses for the employee and, in some cases, their family members as well. Another benefit to consider is the provision of a pension fund (BPJS Ketenagakerjaan), mandated by Indonesian law, which ensures financial security post-retirement. 

Certain companies may also offer meal and transportation allowances to cover daily commuting and food expenses. 

Furthermore, the opportunity for professional development through training and education programs is another valuable perk. Some employers may even offer additional bonuses such as annual leave, religious holiday allowance (THR), hybrid working, and service appreciation rewards.

Michael Page Salary Guide identifies the different compensation and benefits trends within each industry. Find out what's the most popular perks among your peers!

Tunjangan Hari Raya (THR), often referred to as the 'religious holiday allowance', is a mandatory bonus given by employers in Indonesia, in accordance with the Indonesian Labour Law. It is usually provided to employees on the occasion of major religious festivals, such as Eid for Muslims, Christmas for Christians, and many others, depending on the employee's religious affiliation.

The main aim of this allowance is to support employees in meeting additional expenses usually incurred during such festive periods. The amount is typically equivalent to one month's salary and is supposed to be paid at least one week before the respective religious holiday. In essence, THR embodies the spirit of mutual respect and understanding in Indonesia's multi-religious workforce.

During your interview process, potential employers will ask about your salary expectations and here’s why. First, they want to ensure that your salary expectations are in line with the budget and compensation policies for the position.

If your expectations are significantly higher than what the company is willing to pay, it could be a deal breaker and prevent you from being hired for the job.

Second, asking about salary expectations can help the employer gauge your level of experience and knowledge about the job market. If you have a good understanding of the going rate for the position, it can indicate that you are a knowledgeable and experienced job seeker.

Third, salary expectations can provide the employer with valuable information about your priorities and motivations. For example, if you are willing to accept a lower salary in exchange for other perks or benefits, it can indicate that you are flexible and open to different types of compensation packages.

Overall, asking about salary expectations can help the employer make a more informed decision about whether to hire you for the job, and can help ensure that both the employer and the employee are on the same page when it comes to compensation.

Approximately 70% of employers expect salary negotiations to occur after extending a job offer. Surprisingly, less than half of job seekers partake in these negotiations.

Negotiating salary is an important aspect of the hiring process, as it enables candidates to showcase their worth and potentially secure higher wages.

Remember that engaging in salary negotiations can have long-term benefits for your earning potential.

The average salary in Indonesia varies greatly based on the job sector, education and the level of experience. Within the Michael Page Salary Guide, you can find a list of the average gross salary across different industries, roles and the average salary increase when you switch jobs.

For example, a marketing manager in the finance services industry can earn an average of 40 million IDR per month whereas the same role in the healthcare & life sciences industry earns a monthly gross salary of 70 million IDR.

It is important to note that this is just an average, and salaries can vary greatly depending on individual circumstances.

How we can support you

Michael Page provides specialised recruitment services for professionals at middle management to leadership levels, along with highly specialised technical positions. We harness the global network of PageGroup to deliver swift employment solutions in response to dynamic economic landscapes across various industries.