Staff, banking & tax

Bali's regional minimum wage (UMK) is the legal floor and is revised annually — check the current figure before agreeing anything.

Typical full-time monthly ranges: house cleaner IDR 2.5m–4m, nanny IDR 3m–6m (more with English and experience), private driver IDR 3.5m–5.5m plus fuel, gardener IDR 1.5m–3m, villa manager IDR 5m–10m.

Pay monthly by transfer where possible, and keep a simple signed record of what was paid and when.

THR (Tunjangan Hari Raya) is a mandatory religious holiday bonus — one month's wage for staff with a year of service, pro-rated below that, paid before the holiday.

Staff are entitled to a weekly day off and annual leave. Balinese staff also need time for ceremonies (Galungan, Nyepi, family cremations) — build it in rather than resent it.

Give notice and severance if you end an arrangement; abrupt dismissals cause real hardship and real disputes.

A short written agreement in Indonesian and English covering hours, duties, pay date, leave and notice prevents almost every conflict.

BPJS Kesehatan (health) and BPJS Ketenagakerjaan (employment) registration is required for formal employment and is inexpensive relative to the goodwill it buys.

Hiring through a reputable agency costs more but handles vetting, replacement and payroll paperwork.

Indonesian banks (BCA, Mandiri, BNI, Permata) require a KITAS/KITAP, passport and usually a local address letter. Tourist visas do not qualify.

Once open, you get mobile banking, QRIS payments and free domestic transfers — a large quality-of-life upgrade over ATM cash runs.

Foreign transfers in: Wise and Revolut usually beat bank wires on rate and speed. Large or frequent inbound transfers can trigger source-of-funds questions, so keep records.

An NPWP is the Indonesian tax ID. It's needed for a work permit, company ownership, some banking and vehicle registration.

Without one, withholding tax on income is charged at a higher rate than for NPWP holders.

Broadly, spending 183 days or more in Indonesia in a 12-month period, or living here with intent to stay, makes you a tax resident on worldwide income.

Resident personal income tax is progressive, starting at 5% and rising through 15%, 25%, 30% and 35% at the top band.

Your home country may still tax you; double-tax agreements decide which side gets what. This is exactly where paying an accountant for one hour saves a year of guessing.

Foreign-owned companies (PT PMA) have minimum capital requirements, monthly reporting and annual filing obligations — running one without a local accountant is not realistic.

Restaurant and hotel businesses also collect regional PB1 tax; VAT (PPN) applies above the registration threshold.

Rental income from property is taxed, and enforcement on villa rentals has tightened.