PPh 21 Rates Under UU HPP
Annual taxable income (penghasilan kena pajak, PKP) is taxed in five layers:
| PKP a year | Rate |
|---|---|
| Rp 0 to Rp 60,000,000 | 5% |
| Rp 60,000,001 to Rp 250,000,000 | 15% |
| Rp 250,000,001 to Rp 500,000,000 | 25% |
| Rp 500,000,001 to Rp 5,000,000,000 | 30% |
| Over Rp 5,000,000,000 | 35% |
The lowest layer was widened to Rp 60,000,000 and the 35% layer added by the Tax Harmonisation Law (UU HPP) in 2022. The rates have not changed since.
PTKP Allowance by Family Status
PTKP is the tax-free allowance. It is Rp 54,000,000 for yourself, plus Rp 4,500,000 if married and Rp 4,500,000 for each dependant, up to three.
| Status | PTKP a year |
|---|---|
| TK/0 | Rp 54,000,000 |
| TK/1 | Rp 58,500,000 |
| TK/2 | Rp 63,000,000 |
| TK/3 | Rp 67,500,000 |
| K/0 | Rp 58,500,000 |
| K/1 | Rp 63,000,000 |
| K/2 | Rp 67,500,000 |
| K/3 | Rp 72,000,000 |
A married employee with two children (K/2) on Rp 10,000,000 a month pays Rp 201,450 a month in PPh 21, against Rp 273,100 for TK/0.
Biaya Jabatan and the Taxable Base
Gross income for PPh 21 includes more than cash salary. Under PMK 168/2023, the premiums your employer pays for JKK, JKM and BPJS Kesehatan count as your income. On Rp 10,000,000 that adds Rp 454,000 a month.
- Subtract biaya jabatan, an occupational cost allowance of 5%, at most Rp 6,000,000 a year.
- Subtract your own JHT and JP contributions.
- Subtract PTKP. What remains, rounded down to the thousand, is PKP.
Your 1% BPJS Kesehatan share is not deductible.
BPJS Contributions for Employees
| Programme | Employee | Employer | Wage cap a month |
|---|---|---|---|
| BPJS Kesehatan (health) | 1% | 4% | Rp 12,000,000 |
| JHT old age savings | 2% | 3.7% | None |
| JP pension | 1% | 2% | Rp 10,547,400 |
| JKK work accident | None | 0.24% to 1.74% | None |
| JKM death benefit | None | 0.3% | None |
The JP cap of Rp 10,547,400 is the latest figure BPJS Ketenagakerjaan publishes; it is reviewed each year. Above Rp 12,000,000 a month the health share stays at Rp 120,000.
TER Monthly Withholding Versus the Annual Tax
Since January 2024 employers withhold PPh 21 from January to November with the TER effective rates (tarif efektif rata-rata): a single percentage of monthly gross picked from category A, B or C by PTKP status. In December they work out the full year's tax on the annual rates and withhold the balance.
The year total is the same either way. TER can make November pay look higher and December pay lower than the average shown here, which spreads the annual tax evenly.
Worked Example on 10 Million Rupiah
- Salary Rp 120,000,000 a year plus employer premiums Rp 5,448,000: gross Rp 125,448,000
- Less biaya jabatan Rp 6,000,000, JHT Rp 2,400,000, JP Rp 1,200,000 and PTKP Rp 54,000,000: PKP Rp 61,848,000
- Tax: 5% of Rp 60,000,000 plus 15% of Rp 1,848,000 = Rp 3,277,200
- Employee BPJS: Kesehatan Rp 1,200,000, JHT Rp 2,400,000, JP Rp 1,200,000
- Net: Rp 111,922,800 a year, Rp 9,326,900 a month
Net Salary at Six Monthly Amounts
| Gross a month | PPh 21 | BPJS (employee) | Net a month |
|---|---|---|---|
| Rp 5,000,000 | Rp 15,779 | Rp 200,000 | Rp 4,784,221 |
| Rp 7,500,000 | Rp 136,171 | Rp 300,000 | Rp 7,063,829 |
| Rp 10,000,000 | Rp 273,100 | Rp 400,000 | Rp 9,326,900 |
| Rp 15,000,000 | Rp 1,023,325 | Rp 525,474 | Rp 13,451,201 |
| Rp 25,000,000 | Rp 2,501,425 | Rp 725,474 | Rp 21,773,101 |
| Rp 50,000,000 | Rp 8,726,683 | Rp 1,225,474 | Rp 40,047,843 |
TK/0 status, no THR. On Rp 30,000,000 a month the PPh 21 average is Rp 3,650,792.
THR, Allowances and What Is Taxed
- THR, the religious holiday allowance of at least one month's pay, is taxable and is not included here. It raises the annual tax.
- Taxed: salary, fixed and variable allowances, overtime, bonuses and the employer premiums above.
- Not deductible: private insurance and your own BPJS Kesehatan share.
Assumptions and Sources for Indonesia
- Permanent employee (pegawai tetap) with an NPWP or NIK, working the full year for one employer.
- JKK at the lowest risk rate of 0.24%; higher risk work raises taxable income slightly.
- No THR, bonus or zakat deducted through payroll.
Sources: Directorate General of Taxes (pajak.go.id), PMK 168/2023 and PP 58/2023, BPJS Kesehatan and BPJS Ketenagakerjaan. Rates for 2026. To compare with Vietnam, use the Vietnam Gross to Net Calculator.
Frequently Asked Questions
How much is 10 million rupiah after tax?
About Rp 9,326,900 a month for TK/0 status in 2026, after PPh 21 and the employee BPJS shares.
What is PTKP in 2026?
Rp 54,000,000 a year for a single person, plus Rp 4,500,000 for marriage and Rp 4,500,000 for each of up to three dependants.
What is biaya jabatan?
An occupational cost allowance of 5% of gross income, capped at Rp 6,000,000 a year, that reduces taxable income.
How much BPJS does an employee pay?
1% for health, 2% for JHT and 1% for JP, with caps on health and JP.
Why is my December PPh 21 different?
Because the monthly TER rates are an approximation and December settles the exact annual tax.
Is THR taxed?
Yes. It is part of yearly income for PPh 21 and usually pushes the tax up in the month it is paid.