According to Mercer's 2025 Compensation Survey, the average salary of Indonesian employees is expected to grow by 5.8% in 2026, down from 6.3% in 2025. The survey analyzed compensation trends and policies for over 7,000 positions across 588 companies in Indonesia. The results show that despite the slowdown in growth, all surveyed companies still plan to increase salaries in 2026 (consistent with 2025).
Key factors affecting salary growth in 2026 include individual performance, salary ranges, and company performance. By industry, the chemical industry shows the strongest confidence in talent investment, with an expected salary increase of 6.2%; the automotive industry is more moderate at only 4.9%, reflecting differences in compensation strategies across industries. In terms of bonuses, the average bonus actually paid in 2025 was approximately 16.6% of the annual base salary, slightly lower than the 17.5% expected in 2024.
Voluntary employee turnover rates are expected to remain stable: 5.2% in 2025, largely consistent with 5.1% in 2023 and 2024; however, involuntary turnover (such as layoffs) is expected to increase, particularly in the high-tech, mining, and mining contracting industries. In addition, corporate workforce expansion plans are slowing: only about 20% of companies plan to increase headcount in 2026, down from the previous expectation of 25%.
According to Mercer's 2025 Compensation Survey, the average salary of Indonesian employees is expected to grow by 5.8% in 2026, down from 6.3% in 2025. The survey analyzed compensation trends and policies for over 7,000 positions across 588 companies in Indonesia. The results show that despite the slowdown in growth, all surveyed companies still plan to increase salaries in 2026 (consistent with 2025).
Key factors affecting salary growth in 2026 include individual performance, salary ranges, and company performance. By industry, the chemical industry shows the strongest confidence in talent investment, with an expected salary increase of 6.2%; the automotive industry is more moderate at only 4.9%, reflecting differences in compensation strategies across industries. In terms of bonuses, the average bonus actually paid in 2025 was approximately 16.6% of the annual base salary, slightly lower than the 17.5% expected in 2024.
Voluntary employee turnover rates are expected to remain stable: 5.2% in 2025, largely consistent with 5.1% in 2023 and 2024; however, involuntary turnover (such as layoffs) is expected to increase, particularly in the high-tech, mining, and mining contracting industries. In addition, corporate workforce expansion plans are slowing: only about 20% of companies plan to increase headcount in 2026, down from the previous expectation of 25%.