Job expense limit: five percent or six million rupiah

Kring Pajak, the contact centre of Indonesia’s Directorate General of Taxes, reminded on Monday 8 December 2025 that the job‑expense deduction for permanent employees is limited to five percent of gross income or a maximum of six million rupiah per year. The rule is stipulated in Ministry of Finance Regulation No. 168/2023.

Job expense is one of three allowable reductions when calculating taxable income, alongside pension contributions and zakat donations. The five‑percent or six‑million‑rupiah ceiling applies per employer, and if an employee receives salary from multiple employers, each calculation is made separately.

The ceiling affects individual taxpayers because it determines the amount that can be claimed on the annual tax return, influencing the final tax liability. When the employer is not a tax withholding agent, the taxpayer must apply the deduction themselves in the annual filing.