Job Offer for Jakarta, Indonesia - need advice
Feb 25th 2018, 10:45 pm
#1
Just Joined
Thread Starter
Joined: Apr 2016
Posts: 17
Job Offer for Jakarta, Indonesia - need advice
Hi All
I've received a draft contract for a position in Jakarta on a 12 month fixed term contract, I'm a Civil Engineer from the UK.
I've reviewed the contract and I'm shortlisting some questions for the employer but I want to ask the right questions.
1. Under the "Leave" section the clause states: "The remuneration rate has been calculated to compensate you for any leave and for (non-working) public holidays you may be entitled to under policy or statute, to the extent this is possible under law." - this is not clear to me. How much annual leave would i get? and would I be paid for it or is it unpaid?
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
3. One clause states that the employer is liable for any personal income tax and social benefits insurance. Is there a chance I could get stung by UK tax authority after I return? Does start and end date of employment influence this? UK financial year is April to April, so it might be in my best interest to commence my employment before April? Is this something I should consider?
Your advice would be appreciated.
Thanks
I've received a draft contract for a position in Jakarta on a 12 month fixed term contract, I'm a Civil Engineer from the UK.
I've reviewed the contract and I'm shortlisting some questions for the employer but I want to ask the right questions.
1. Under the "Leave" section the clause states: "The remuneration rate has been calculated to compensate you for any leave and for (non-working) public holidays you may be entitled to under policy or statute, to the extent this is possible under law." - this is not clear to me. How much annual leave would i get? and would I be paid for it or is it unpaid?
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
3. One clause states that the employer is liable for any personal income tax and social benefits insurance. Is there a chance I could get stung by UK tax authority after I return? Does start and end date of employment influence this? UK financial year is April to April, so it might be in my best interest to commence my employment before April? Is this something I should consider?
Your advice would be appreciated.
Thanks
Feb 26th 2018, 3:49 am
#2
BE Enthusiast
Joined: Mar 2012
Posts: 344
Re: Job Offer for Jakarta, Indonesia - need advice
Hi All
I've received a draft contract for a position in Jakarta on a 12 month fixed term contract, I'm a Civil Engineer from the UK.
I've reviewed the contract and I'm shortlisting some questions for the employer but I want to ask the right questions.
1. Under the "Leave" section the clause states: "The remuneration rate has been calculated to compensate you for any leave and for (non-working) public holidays you may be entitled to under policy or statute, to the extent this is possible under law." - this is not clear to me. How much annual leave would i get? and would I be paid for it or is it unpaid?
The Contract should state your leave entitlement.
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
Sick leave is normal in Indonesia. This sounds like it is referring to unauthorised absence.
3. One clause states that the employer is liable for any personal income tax and social benefits insurance. Is there a chance I could get stung by UK tax authority after I return? Does start and end date of employment influence this? UK financial year is April to April, so it might be in my best interest to commence my employment before April? Is this something I should consider?
Your liability to UK tax is subject to the latest rules by the HMRC. The current rules are not as straightforward as they used to be. You can find all the information you need in their guidance note : Statutory Residents Test (RDR 3). You can download this from their website. However, in principle it is best to start your overseas employment just before the start of a tax year and end it just after the end of a tax year, so that your employment covers a whole tax year. The rules in the guidance note relate to the amount of time you are allowed to spend in the UK in a particular tax year for which you are claiming to be non-resident.
Your advice would be appreciated.
Thanks
I've received a draft contract for a position in Jakarta on a 12 month fixed term contract, I'm a Civil Engineer from the UK.
I've reviewed the contract and I'm shortlisting some questions for the employer but I want to ask the right questions.
1. Under the "Leave" section the clause states: "The remuneration rate has been calculated to compensate you for any leave and for (non-working) public holidays you may be entitled to under policy or statute, to the extent this is possible under law." - this is not clear to me. How much annual leave would i get? and would I be paid for it or is it unpaid?
The Contract should state your leave entitlement.
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
Sick leave is normal in Indonesia. This sounds like it is referring to unauthorised absence.
3. One clause states that the employer is liable for any personal income tax and social benefits insurance. Is there a chance I could get stung by UK tax authority after I return? Does start and end date of employment influence this? UK financial year is April to April, so it might be in my best interest to commence my employment before April? Is this something I should consider?
Your liability to UK tax is subject to the latest rules by the HMRC. The current rules are not as straightforward as they used to be. You can find all the information you need in their guidance note : Statutory Residents Test (RDR 3). You can download this from their website. However, in principle it is best to start your overseas employment just before the start of a tax year and end it just after the end of a tax year, so that your employment covers a whole tax year. The rules in the guidance note relate to the amount of time you are allowed to spend in the UK in a particular tax year for which you are claiming to be non-resident.
Your advice would be appreciated.
Thanks
Good luck.
Feb 26th 2018, 5:20 am
#3
BE Enthusiast
Joined: Aug 2015
Location: Penang
Posts: 959
Re: Job Offer for Jakarta, Indonesia - need advice
1. Under the "Leave" section the clause states: "The remuneration rate has been calculated to compensate you for any leave and for (non-working) public holidays you may be entitled to under policy or statute, to the extent this is possible under law." - this is not clear to me. How much annual leave would i get? and would I be paid for it or is it unpaid?
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
2. There is no mention of sick leave anywhere in the contract. another clause does mention that if i dont work my contracted weekly hours of 48 hours, i would be deducted for each day by 1/22 of the monthly income. does that suggest i dont get paid sick leave? is this normal in Indonesia?
Feb 28th 2018, 11:30 am
#4
Just Joined
Thread Starter
Joined: Apr 2016
Posts: 17
Re: Job Offer for Jakarta, Indonesia - need advice
Thanks for the responses so far.
I've received clarification from them and they have confirmed that all my annual leave, public holidays, and sick days are UNPAID (!)
that does sounds rather unusual as there must be statute law in place entitling workers a minimum number of annual leave.
i dont really take sick leave as i rarely become ill, so i can live with that.
However, not being paid for annual leave and public holidays equates to around 6 weeks of pay, in monetary value, assuming 5 weeks of annual leave a year and 1 week of public holidays.
on top of that, my contracted hours are 20% higher than the standard 40 hours in the UK.
So the salary on offer is "effectively" around 33% less.
Am i in a position to negotiate these terms without jeopardising the opportunity?
It is a 12 months contract with (seemingly) no financial liabilities if i do find something better and leave earlier.
I've received clarification from them and they have confirmed that all my annual leave, public holidays, and sick days are UNPAID (!)
that does sounds rather unusual as there must be statute law in place entitling workers a minimum number of annual leave.
i dont really take sick leave as i rarely become ill, so i can live with that.
However, not being paid for annual leave and public holidays equates to around 6 weeks of pay, in monetary value, assuming 5 weeks of annual leave a year and 1 week of public holidays.
on top of that, my contracted hours are 20% higher than the standard 40 hours in the UK.
So the salary on offer is "effectively" around 33% less.
Am i in a position to negotiate these terms without jeopardising the opportunity?
It is a 12 months contract with (seemingly) no financial liabilities if i do find something better and leave earlier.
Mar 6th 2018, 12:45 am
#5
Forum Regular
Joined: Sep 2008
Posts: 51
Re: Job Offer for Jakarta, Indonesia - need advice
The employer will be expecting you to negotiate and go back for a better offer and you must do so.
Even local employees get paid leave so you as an expatriate should demand nothing less. I would also ask for annual paid flights back to your country of origin.
Also; costs of visa and work permit to be paid by employer; medical insurance to be provided by employer; I hope they have also offered suitable paid for accommodation; ask the employer to pay income tax - they can only say no or negotiate with you. Taxes can be higher than UK particularly as the personal allowance in either very low or non-existent. Get a draft contract in writing and check it very carefully line by line and word by word before you accept. Also you must insist on being paid in hard currency - normally USD in this part of the world.
If you accept a bad contract and then get there and find that all the other foreigners you meet have been able to negotiate much better terms then you will regret it.
Even local employees get paid leave so you as an expatriate should demand nothing less. I would also ask for annual paid flights back to your country of origin.
Also; costs of visa and work permit to be paid by employer; medical insurance to be provided by employer; I hope they have also offered suitable paid for accommodation; ask the employer to pay income tax - they can only say no or negotiate with you. Taxes can be higher than UK particularly as the personal allowance in either very low or non-existent. Get a draft contract in writing and check it very carefully line by line and word by word before you accept. Also you must insist on being paid in hard currency - normally USD in this part of the world.
If you accept a bad contract and then get there and find that all the other foreigners you meet have been able to negotiate much better terms then you will regret it.
Mar 6th 2018, 4:44 am
#6
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Joined: Mar 2011
Posts: 1,274
Re: Job Offer for Jakarta, Indonesia - need advice
The first thing the OP needs is to have the contract saying the employer will get a visa (called a Kitas) to enter Indonesia and then get him/her a work permit (called an IMTA). In addition, the employer has to pay the Indonesian Manpower Agency US$1,200 per year to employ a foreigner.
Without a contract offering those it will be a criminal act to enter and work in Indonesia...so the rest of the question becomes moot.
Without a contract offering those it will be a criminal act to enter and work in Indonesia...so the rest of the question becomes moot.
Last edited by Davita; Mar 6th 2018 at 5:43 am.
