PPh 21 Calculator – Indonesia Employee Income Tax

PPh 21 (Pajak Penghasilan Pasal 21) is the Indonesian withholding tax on income received by individual taxpayers from employment, services, or activities. Employers are required to withhold PPh 21 from employee salaries and remit it to the government.

This calculator supports both the traditional Progressive Rate method (Article 17 of the Income Tax Law) and the newer Effective Average Rate (TER) method introduced by PP 58/2023 and PMK 168/2023, which has been mandatory since January 2024.

02Progressive Tax Rates (Article 17 UU HPP)

The Indonesian income tax uses a progressive bracket system. As of UU HPP No. 7/2021, the brackets are:

• 0 – IDR 60,000,000: 5%
• IDR 60,000,000 – IDR 250,000,000: 15%
• IDR 250,000,000 – IDR 500,000,000: 25%
• IDR 500,000,000 – IDR 5,000,000,000: 30%
• Above IDR 5,000,000,000: 35%

03PTKP (Penghasilan Tidak Kena Pajak)

PTKP is the non-taxable income threshold. Income below PTKP is not subject to tax. The PTKP amounts are:

• Individual taxpayer: IDR 54,000,000/year
• Married taxpayer: additional IDR 4,500,000/year
• Each dependent (max 3): additional IDR 4,500,000/year per dependent

04Position Cost (Biaya Jabatan)

Employees can deduct a 'position cost' of 5% of gross income, capped at IDR 500,000 per month (IDR 6,000,000 per year). This reduces the taxable income base.

Additionally, employee-paid pension/JHT/THT contributions are also deductible from gross income.

05TER Method (Effective Average Rate)

Since January 2024, employers must use TER (Tarif Efektif Rata-rata) for monthly PPh 21 withholding from January to November. TER simplifies monthly tax calculation by applying a single effective rate based on gross income and PTKP status category.

For December, the employer recalculates the full-year tax using progressive rates and adjusts the December withholding to match the annual total.

TER Categories: Category A (TK/0, TK/1, TK/2, K/0), Category B (TK/3, K/1, K/2), Category C (K/3).