By Indonesia has officially published Law Number 27 of 2026 on Employment Protection, making the full text available to workers, job seekers and employers through the Legal Documentation and Information Network (JDIH) of the Ministry of State Secretariat, according to ANTARA News. Manpower Minister Yassierli announced the publication and said the document is a public right and an essential resource for anyone who needs direct access to the regulations governing the employment sector.
The law consists of 313 articles across 23 chapters. It was approved by the House of Representatives (DPR) and the government during a plenary session at the Parliament Complex in Senayan, Jakarta on October 6, 2026, then ratified by President Prabowo Subianto and promulgated on October 28, 2026. It came into effect on the date of promulgation.
What the law covers
The 23 chapters span the full employment lifecycle. They include general provisions; foundations, principles and objectives; equal opportunity and treatment; workforce planning and employment information; increased productivity; job training and apprenticeships; workforce placement; expanding employment opportunities; informal sector labour; use of foreign workers; employment relations; specific employment relations; protection, wages and welfare; industrial relations; termination of employment; severance pay reserve funds; development; labour inspection; investigations; criminal provisions; other provisions; transitional provisions; and closing provisions.
Yassierli said the law aims to ensure comprehensive employment protection throughout the working life cycle, from preparation for entering the workforce and competency development to occupational safety and health, the employment relationship and retirement.
How it interacts with existing employment rules
A key practical point for HR and payroll teams is the transitional provision. Implementing regulations under Law Number 13 of 2003 on Employment and Law Number 6 of 2023 on Job Creation remain in force, provided they do not conflict with the provisions of Law Number 27 of 2026. That means employers should not assume the new law wipes the slate clean. Existing ministerial regulations, government regulations and other implementing rules continue to apply unless a specific provision in the new law contradicts them.
This creates a layered compliance environment. Payroll teams calculating wages, overtime, social security contributions or termination payments will need to check both the new law and the older implementing regulations. Where the two align, current practice can continue. Where they differ, the new law takes precedence. The government has not yet published a consolidated set of implementing regulations for Law Number 27 of 2026, so employers should monitor the Manpower Ministry for further guidance.
What HR and payroll teams should do now
The immediate step is to download the law from the JDIH portal and review the chapters most relevant to day-to-day operations. Priority areas for most employers will be termination of employment, wages and welfare, use of foreign workers, and specific employment relations, which may cover fixed-term contracts, outsourcing or other arrangements.
Because the law is new and detailed, a practical approach is to map current policies against the 23 chapter headings. Where a chapter covers an area the company already manages, such as training or workforce placement, the compliance team should identify whether the new law introduces new obligations or changes existing ones. Where a chapter covers an area the company has not previously addressed, such as severance pay reserve funds, the team should assess whether the employer now has a new statutory duty.
Payroll teams should pay particular attention to any changes in wage protection, severance calculations or social security obligations. The law’s chapter on protection, wages and welfare is likely to contain provisions that affect payroll runs, but the ANTARA report does not detail specific thresholds or rates. Employers should confirm the exact requirements against the official text before changing any payroll configuration.
Practical risks and common mistakes
One common mistake after a major employment law is published is to assume that all previous rules are automatically invalid. The transitional provision in Law Number 27 of 2026 explicitly avoids that outcome, so HR teams should not discard existing compliance materials.
Another risk is relying on summaries or unofficial translations. The official text is in Indonesian, and the Manpower Minister’s statement encourages direct access to the document. For multinational employers, an accurate translation of the specific chapters that affect payroll and employment contracts is a sensible early investment, but any translation should be checked against the official JDIH version.
A third risk is delay. Yassierli said all stakeholders must put their understanding of the law into practice. While the government has not announced a grace period in the ANTARA report, the law came into effect on October 28, 2026. Employers should treat the provisions as live unless a specific transitional article says otherwise.
Where to confirm details
The official document is available through the JDIH of the Ministry of State Secretariat. Employers with questions about how a specific provision applies to their situation should seek advice from the Manpower Ministry or a qualified Indonesian employment lawyer, particularly where the new law interacts with existing implementing regulations under Law Number 13 of 2003 and Law Number 6 of 2023.
Sources: ANTARA News
Photo: A legal document in New Persian (Feb. 1005 AD) by اردشیر خسروی, CC BY-SA 4.0
