Leave policy in Singapore and Indonesia differs significantly, and for businesses operating across both countries, understanding these differences is essential for legal compliance.
From annual leave and sick leave to maternity leave, each country sets its own rules and entitlements.
This article breaks down the key regulations in both jurisdictions and explains how an Employer of Record (EOR) can help Singapore companies hire and manage employees in Indonesia compliantly.
Leave Policy in Singapore: Key Regulations for Employers
Singapore’s leave policy is governed by the Employment Act, with parental leave provisions under the Child Development Co-Savings Act (CDCA). A key advantage for employers is that a significant portion of parental leave costs are reimbursed by the government.
Annual Leave in Singapore
Employees are entitled to paid annual leave starting at 7 days per year, increasing by one day per year of service up to a maximum of 14 days. Eligibility begins after three months of continuous service.
Sick Leave in Singapore
After six months of service, employees are entitled to 14 days of outpatient sick leave and 60 days of hospitalization leave annually. A valid medical certificate is required to claim paid sick leave.
Maternity Leave in Singapore
Eligible working mothers receive 16 weeks of paid maternity leave for Singapore citizen children. The employer funds the first eight weeks for the first two births, while the government reimburses the remainder. From the third birth onwards, all 16 weeks are government-funded.
Paternity Leave in Singapore
From 1 April 2025, eligible fathers are entitled to 4 weeks of paid paternity leave, fully reimbursed by the government. This applies to fathers of Singapore citizen children who have been employed for at least three months.
Shared Parental Leave in Singapore
Under the Child Development Co-Savings (Amendment) Act 2024, parents can share an additional 6 to 10 weeks of government-funded leave, separate from existing maternity and paternity entitlements.
Childcare Leave in Singapore
Each parent with a Singapore citizen child below age 7 is entitled to 6 days of paid childcare leave per year. For non-citizen children, the entitlement is 2 days per year.
Public Holidays in Singapore
Singapore observes 11 gazetted public holidays per year. Employees required to work on a public holiday are entitled to an additional day’s pay or a day off in lieu.
Leave Policy in Indonesia: Legal Requirements for Employers
Indonesia’s leave policy is governed by Manpower Law No. 13 of 2003, the Omnibus Law (UU Cipta Kerja), and Law No. 4 of 2024 on Maternal and Child Welfare. Unlike Singapore, all leave costs in Indonesia are fully borne by the employer with no government reimbursement scheme.
Annual Leave in Indonesia
Employees who have completed 12 months of continuous service are entitled to 12 working days of annual leave per year. This entitlement is fixed and does not increase with tenure. At least 6 consecutive days must be taken within the year.
Sick Leave in Indonesia
Indonesia uses a tiered wage reduction structure for sick leave: 100% pay for the first four months, 75% for the next four months, 50% for the following four months, and 25% thereafter until employment is terminated. A valid doctor’s certificate is required.
Maternity Leave in Indonesia
Female employees are entitled to 3 months of paid maternity leave under the Manpower Law. Under Law No. 4 of 2024, this can be extended by up to 3 months for medical reasons, with full pay for the first four months and 75% pay for the fifth and sixth months. Employers are prohibited from terminating employees during maternity leave.
Paternity Leave in Indonesia
Fathers are entitled to 2 days of paid paternity leave, extendable by up to 3 additional days with employer agreement under Law No. 4 of 2024, for a total of up to 5 days.
Special or Personal Leave in Indonesia
The Manpower Law provides paid special leave for personal events: 3 days for an employee’s own wedding, 2 days for the death of an immediate family member, and 2 days for a child’s wedding or circumcision, among others. Female employees are also entitled to 2 days of paid menstrual leave per month.
Public Holidays in Indonesia
Indonesia observes 16 to 17 public holidays per year. Employers are also required to pay a Tunjangan Hari Raya (THR), a religious holiday allowance equivalent to one month’s salary, to all eligible employees at least one week before the relevant religious holiday.
Singapore vs Indonesia Leave Policy: Side-by-Side Comparison
The table below provides a quick reference for employers comparing leave entitlements across both jurisdictions:
| Leave Type | Singapore | Indonesia |
| Annual Leave | 7–14 days (based on tenure) | 12 days (after 1 year) |
| Sick Leave (Outpatient) | 14 days/year | No fixed limit; tiered pay |
| Hospitalization Leave | 60 days/year | Covered under sick leave tiers |
| Maternity Leave | 16 weeks (citizen child) | 3 months (extendable to 6) |
| Paternity Leave | 4 weeks (from Apr 2025) | 2–5 days |
| Shared Parental Leave | 6–10 weeks (new scheme) | Not regulated |
| Childcare Leave | 6 days/year (per parent) | Not regulated |
| Public Holidays | 11 days | 16–17 days (varies annually) |
| Leave Cost Funding | Partly govt-reimbursed | Fully employer-borne |
Key Differences in Leave Policy Between Singapore and Indonesia
Significant Gap in Paternity Leave
Singapore’s 4-week paternity leave (from April 2025) far exceeds Indonesia’s maximum of 5 days. Companies in Indonesia must fund any additional paternity benefits entirely themselves.
Differences in Sick Leave Structure
Singapore offers a fixed entitlement of 14 days outpatient and 60 days hospitalization leave at full pay. Indonesia applies a tiered reduction system with no fixed duration cap, creating potential financial unpredictability for employers.
Public Holiday Variations
Indonesia’s 16 to 17 public holidays per year exceed Singapore’s 11, requiring employers to adjust project timelines and workforce planning accordingly.
Maternity Leave Cost and Funding
Singapore employers benefit from government reimbursement for maternity leave costs. In Indonesia, all maternity leave costs are fully employer-funded, increasing the financial burden on businesses of all sizes.
Challenges for Singapore Companies Expanding to Indonesia
Strict Statutory Compliance Requirements
Indonesia’s overlapping labor regulations require constant monitoring. Non-compliance with the Manpower Law, Omnibus Law, or Law No. 4/2024 can result in criminal sanctions or industrial disputes.
No Government Reimbursement for Leave Costs
All statutory leave costs in Indonesia are employer-funded. This must be factored into workforce budgeting when expanding operations into Indonesia.
Regional Variations in Public Holidays
Beyond national holidays, regional governments may designate additional local holidays, which companies hiring across multiple provinces need to account for.
Additional Obligations: THR (Religious Holiday Allowance)
Indonesia’s THR obligation requires employers to pay a one-month salary bonus before each employee’s religious holiday. This applies to both permanent and contract staff and carries financial penalties for late or non-payment.
How an Employer of Record Supports Leave Policy Compliance
For companies without a local entity in Indonesia, an Employer of Record (EOR) is the most practical solution for ensuring full leave policy compliance. An EOR acts as the legal employer, managing HR, payroll, and all statutory obligations on your behalf.
Learn more: What is EOR and How Does It Operate in Indonesia.
Managing Annual Leave, Sick Leave, and Maternity Leave
An EOR tracks leave balances, monitors employee eligibility, and ensures all entitlements are administered accurately and on time in accordance with Indonesian law.
Payroll and Leave Compensation Compliance
From tiered sick leave pay calculations to maternity and paternity leave wages, an EOR ensures accurate payroll processing. See also: Severance Pay in Indonesia.
Employment Contracts and Legal Protection
An EOR prepares employment contracts that reflect current Indonesian labor law, including all leave entitlements, and updates them promptly when regulations change.
Handling BPJS and THR Obligations
An EOR manages BPJS enrollment, contributions, and THR payments, ensuring timely compliance with two of the most commonly mismanaged obligations for foreign companies in Indonesia.
Why Choose Abhitech as Your Employer of Record in Indonesia
Abhitech is a trusted HR and payroll solutions partner for businesses operating in Indonesia, helping Singapore and regional companies hire compliantly without needing a local entity.
Fast Market Entry Without Entity Setup
Abhitech’s EOR service allows companies to onboard Indonesian employees quickly, bypassing the lengthy process of establishing a local legal entity.
Full Compliance with Indonesian Labor Law
Abhitech stays current with all regulatory updates, ensuring your workforce is always covered under the correct leave entitlements and employment protections.
End-to-End HR and Payroll Support
From contracts and onboarding to payroll, BPJS, and THR, Abhitech handles the full scope of Indonesian HR compliance so you can focus on your business.
Expertise in Local Leave Policy Regulations
Abhitech’s HR professionals bring deep knowledge of Indonesia’s leave regulations, helping you avoid disputes, penalties, and compliance gaps.
Hire Employees in Indonesia with Confidence and Compliance
Understanding leave policy differences between Singapore and Indonesia is a critical first step for any cross-border expansion. Partnering with an experienced EOR like Abhitech is the most efficient way to ensure full compliance while keeping your focus on business growth.
Ready to expand your team to Indonesia? Learn more about Abhitech’s Employer of Record service.
FAQ About Leave Policy and EOR
1. What is leave policy in Singapore?
Leave policy in Singapore is governed by the Employment Act and CDCA, covering annual leave (7 to 14 days), sick leave (14 days outpatient, 60 days hospitalization), 16 weeks maternity leave, 4 weeks paternity leave, shared parental leave, childcare leave, and 11 public holidays. Many parental leave costs are reimbursed by the government.
2. How many days of annual leave are required in Indonesia?
Employees in Indonesia are entitled to 12 working days of annual leave after completing 12 months of continuous service. At least 6 consecutive days must be taken within the year, and unused leave expires six months after the accrual period ends.
3. What is the difference in maternity leave between Singapore and Indonesia?
Singapore provides 16 weeks of paid maternity leave with partial government reimbursement. Indonesia provides 3 months of fully employer-funded maternity leave, extendable to 6 months under special medical circumstances per Law No. 4/2024.
4. Can foreign companies manage leave policy without a local entity?
Yes, through an Employer of Record (EOR). An EOR legally employs staff on your behalf and handles all compliance obligations, including leave administration, payroll, and statutory contributions.
Find out more on Abhitech’s homepage or explore our blog resources for more compliance guides.
5. How does an EOR help with leave compliance?
An EOR manages leave tracking, payroll calculations, THR payments, and BPJS contributions while staying current with Indonesian labor law. For specific queries, contact Abhitech directly.
