Indonesia Severance Pay Calculator
Estimate your pesangon — Uang Pesangon (UP) and Uang Penghargaan Masa Kerja (UPMK) — under PP 35/2021.
Estimate only. Not legal advice — confirm with Disnaker or a labor lawyer.
Three components make up an Indonesian severance package
Under Article 156 of the Manpower Law (as amended by the Job Creation Law) and its implementing regulation PP 35/2021, a terminated permanent employee is entitled to up to three separate payments: Uang Pesangon (UP), a base severance tied to years of service; Uang Penghargaan Masa Kerja (UPMK), a long-service award that kicks in at 3 years; and Uang Penggantian Hak (UPH), compensation for unused annual leave, return-travel costs, and other contractual entitlements.
This calculator computes UP and UPMK, since those follow a clean formula based on tenure and salary. UPH depends on things this calculator can't know — how many leave days you have left, whether relocation is involved — so it isn't included in the total below; add it separately based on your actual circumstances.
Uang Pesangon (UP) — Article 40(2)
| Years of service | UP entitlement |
|---|---|
| Under 1 year | 1 month's salary |
| 1 – under 2 years | 2 months |
| 2 – under 3 years | 3 months |
| 3 – under 4 years | 4 months |
| 4 – under 5 years | 5 months |
| 5 – under 6 years | 6 months |
| 6 – under 7 years | 7 months |
| 7 – under 8 years | 8 months |
| 8 years or more | 9 months (maximum) |
Uang Penghargaan Masa Kerja (UPMK) — Article 40(3)
| Years of service | UPMK entitlement |
|---|---|
| Under 3 years | None |
| 3 – under 6 years | 2 months |
| 6 – under 9 years | 3 months |
| 9 – under 12 years | 4 months |
| 12 – under 15 years | 5 months |
| 15 – under 18 years | 6 months |
| 18 – under 21 years | 7 months |
| 21 – under 24 years | 8 months |
| 24 years or more | 10 months |
Why the termination reason changes the total
PP 35/2021 applies a multiplier to the UP and UPMK base amounts depending on why employment ended — and the difference is significant. A company citing financial losses pays just 0.5× the base amount; a standard termination pays the full 1×; and cases involving an employee's illness, disability, death, or retirement pay 2×. Voluntary resignation generally doesn't trigger UP/UPMK at all, though it may qualify for a separate, company-policy-based "uang pisah."
This is a simplified selection covering the most common scenarios. PP 35/2021 defines many more specific termination categories with their own multipliers — for anything beyond a standard layoff, confirm the exact applicable article with Disnaker or a labor lawyer.
FAQ
Does this apply to contract (PKWT) employees?
No — fixed-term contract employees don't receive UP/UPMK. Instead they receive "Uang Kompensasi," a proportional payment calculated as months worked ÷ 12 × one month's salary, paid at each contract's end or extension.
What counts as "salary" for this calculation?
Basic salary plus fixed allowances — variable bonuses and irregular payments aren't included.