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Maximum Severance Pay for Terminated Employees according to Perppu Ciptaker is 9 Times Salary

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- The Perppu Cipta Kerja (Ciptaker) has been approved by President Joko Widodo (Jokowi). One of the provisions is severance pay for employees who are terminated.

According to Article 156, paragraph 1 on page 562 of the Perppu Ciptaker, as cited by detikcom on Sunday (1/1/2023): "In the event of termination of employment, the employer shall be required to pay severance pay and/or a service appreciation payment and a replacement for rights that should have been received."

The severance pay shall be given in accordance with the following provisions:

  • a. Less than 1 year of service: 1 month's salary
  • b. 1 year or more of service, but less than 2 years: 2 months' salary
  • c. 2 years or more of service, but less than 3 years: 3 months' salary
  • d. 3 years or more of service, but less than 4 years: 4 months' salary
  • e. 4 years or more of service, but less than 5 years: 5 months' salary
  • f. 5 years or more of service, but less than 6 years: 6 months' salary
  • g. 6 years or more of service, but less than 7 years: 7 months' salary
  • h. 7 years or more of service, but less than 8 years: 8 months' salary
  • i. 8 years or more of service: 9 months' salary


In addition, a service appreciation payment shall be given in accordance with the following provisions:

  • a. 3 years or more of service, but less than 6 years: 2 months' salary
  • b. 6 years or more of service, but less than 9 years: 3 months' salary
  • c. 9 years or more of service, but less than 12 years: 4 months' salary
  • d. 12 years or more of service, but less than 15 years: 5 months' salary
  • e. 15 years or more of service, but less than 18 years: 6 months' salary
  • f. 18 years or more of service, but less than 21 years: 7 months' salary
  • g. 21 years or more of service, but less than 24 years: 8 months' salary
  • h. 24 years or more of service: 10 months' salary

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