The Payroll Confirmation Letter is a crucial document in Indonesian employment practice, required in various business and administrative contexts. It serves as an official verification of an employee's compensation package, including all components mandated by Indonesian labor law. This document is commonly requested by banks for loan applications, government authorities for visa processing, or other institutions requiring proof of employment and income. The letter must comply with Indonesian employment regulations, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages, ensuring all mandatory benefits and allowances are properly documented. It provides transparency in employment relationships and serves as a reference point for both employer and employee regarding agreed compensation terms.
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1. Letter Header: Company letterhead, date, reference number, and formal letter formatting
2. Employee Details: Full name, employee ID, position/title, department, and employment start date
3. Salary Components: Basic salary amount, listing of fixed allowances (transport, meal allowances, etc.)
4. Statutory Benefits: Confirmation of BPJS Health Insurance, BPJS Employment Insurance, and other mandatory benefits
5. Payment Information: Payment schedule, method of payment, and bank account details if applicable
6. Certification Statement: Statement confirming the accuracy of the information and validity period of the letter
7. Authorized Signature: Signature block with name and title of authorized company representative
1. Tax Category: Include when the letter needs to specify employee's tax status and NPWP (tax ID) number
2. Performance Allowances: Include when confirming variable compensation components or performance-based bonuses
3. Overtime Eligibility: Include for employees eligible for overtime compensation to specify the calculation method
4. Religious Holiday Allowance: Include when specifying THR (Tunjangan Hari Raya) calculation and payment details
5. Special Benefits: Include when confirming any company-specific benefits or special allowances
1. Salary Breakdown Schedule: Detailed breakdown of all salary components and allowances in tabular format
2. Benefits Summary: Summary of all benefits including monetary value where applicable
3. Historical Salary Adjustments: Record of previous salary adjustments if the letter is being used for historical documentation
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology
Manufacturing
Retail
Healthcare
Education
Professional Services
Construction
Mining
Hospitality
Telecommunications
Transportation and Logistics
Energy
Consumer Goods
Agriculture
Relevant Teams
Human Resources
Finance
Payroll
Legal
Compensation and Benefits
Personnel Administration
Employee Relations
HR Operations
Relevant Roles
Human Resources Manager
Payroll Manager
HR Director
Finance Manager
HR Business Partner
Compensation and Benefits Specialist
HR Operations Manager
Finance Director
HR Administrator
Payroll Administrator
HR Executive
Chief Human Resources Officer
Personnel Manager
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