Average Employee Salary in Indonesia Projected to Grow 5.8% in 2026

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Mercer's 2025 Salary Survey shows that the average salary of Indonesian employees is expected to grow by 5.81 TP3T in 2026, down from 6.31 TP3T in 2025.pollAnalyzed over 7,000 jobs at 588 companies in Indonesiaof pay trends and policies, the results show that, despite the slowdown in growth, theAll surveyed firms still plan pay raises for 2026(consistent with 2025).

Core factors affecting salary growth in 2026 includeIndividual performance, salary range and company performanceThe By industry.Chemical industry has the strongest confidence in investing in talent, projected payroll growth of 6.21 TP3T;The automotive sector is milder, only 4.91 TP3T, reflecting differences in compensation strategies across industries. In terms of bonuses, the actual 2025 payout ofThe average bonus is approximately 16.61 TP3T of the annual base salary, which is slightly lower than the expected 17.51 TP3T in 2024.

Voluntary staff separation rates are expected to remain stable: 5.21 TP3T in 2025, which is essentially the same as 5.11 TP3T in 2023 and 2024; however, theProjected increase in involuntary separations (e.g., layoffs)The following are some of the most important issues that have arisen in the pastHigh-tech, mining and mining contracting industries. In addition corporate labor force expansion plans have slowed:Only about 20% of companies plan to increase staff in 2026, lower than previously expected for 25%.

# Social Dynamics