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Does Indonesia’s new labor law change severance pay?
Question

Does Indonesia’s new labor law change severance pay?

Answer
Yes, but not yet. Indonesia’s House of Representatives passed the Manpower Protection Law on 6 October 2026, and the government says the 0.5 severance multiplier will no longer apply. The Ministry of Manpower says the law takes effect one year after it is promulgated, so PP 35/2021 still sets severance in the meantime.
Updated
Nov
2026
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