Estimate your termination package under PP 35/2021: severance (uang pesangon), long-service pay (UPMK) and compensation of rights (UPH), then the final tax that applies to it.
PP 35/2021, the implementing regulation of the Job Creation Law, sets the minimum an employer must pay when employment ends. Depending on the reason, an employee may be owed:
| Years of service | Months of wage |
|---|---|
| Less than 1 | 1 |
| 1 to less than 2 | 2 |
| 2 to less than 3 | 3 |
| 3 to less than 4 | 4 |
| 4 to less than 5 | 5 |
| 5 to less than 6 | 6 |
| 6 to less than 7 | 7 |
| 7 to less than 8 | 8 |
| 8 or more | 9 |
| Years of service | Months of wage |
|---|---|
| 3 to less than 6 | 2 |
| 6 to less than 9 | 3 |
| 9 to less than 12 | 4 |
| 12 to less than 15 | 5 |
| 15 to less than 18 | 6 |
| 18 to less than 21 | 7 |
| 21 to less than 24 | 8 |
| 24 or more | 10 |
The pesangon amount is then multiplied — for example 0.5× for efficiency due to losses, 1× for efficiency without losses, 1.75× for retirement and 2× on death or long-term disability. UPMK is paid at 1× in all these cases. Employees who resign, or are dismissed for serious misconduct, receive only UPH plus any separation pay (uang pisah) in their company rules.
Severance is taxed separately from salary as a final PPh 21 under PP 68/2009. It is not added to your annual income and not reported again in your SPT calculation. The rates are layered:
| Severance amount | Rate |
|---|---|
| Up to Rp50,000,000 | 0% |
| Rp50,000,001 – Rp100,000,000 | 5% |
| Rp100,000,001 – Rp500,000,000 | 15% |
| Above Rp500,000,000 | 25% |
Pension lump sums and JHT withdrawals have their own final-tax rules and are not part of this calculation.
These are statutory minimums. Your employment contract, company regulation or collective agreement may give more, and some termination reasons have conditions. For disputes, consult the local manpower office (Disnaker) or an employment lawyer.