According to the Directorate General of Taxes, Ministry of Finance of the Republic of Indonesia, non-permanent employees are workers such as freelancers who only receive income when they perform work, based on:
The number of working days,
The number of work units completed, or
The completion of a specific type of work requested by the employer.
In this section, we will discuss how to calculate Income Tax Article 21 (PPh 21) for non-permanent employees whose income is paid monthly.
Changes in the Calculation Scheme
Referring to Government Regulation No. 58 of 2023 and Minister of Finance Regulation No. 168 of 2023*), there have been changes in the PPh 21 calculation scheme for non-permanent employees, with the following details.
Example of PPh 21 Calculation for Non-Permanent Employees Who Receive Monthly Income
Mr. N works as a tea picker at a plantation owned by PT M. Mr. N is unmarried and has no dependents. He is classified as a non-permanent employee. Mr. N receives income that is paid monthly based on the harvest results he produces. During 2026, Mr. N receives or earns income as follows:
Based on the Non-Taxable Income status (PTKP) of TK/0, the amount of PPh Article 21 payable on the income received by Mr. N is calculated using the Monthly Effective Tax Rate (Tarif Efektif Bulanan / TER) Category A.
The calculation of Income Tax Article 21 (PPh 21) on the income received or earned by Mr. N during 2026 is as follows:
Notes:
PT M prepares a PPh Article 21 withholding slip for Mr. N every month, including in months when the PPh 21 amount is zero (nil).
Mr. N is required to report the income he receives from PT M in his Annual Income Tax Return (SPT Tahunan PPh) for the 2024 Tax Year.
The PPh Article 21 withheld by PT M becomes a tax credit in Mr. N’s Annual Income Tax Return for the 2026 Tax Year.
Implementation in Gadjian
First, create an income component that is not the default Basic Salary in Gadjian.
You can create it using any type (Fixed Amount / Attendance / Output / Manual), and make sure to select “Yes” for the PPh 21 calculation.
Second, create a separate payslip from the payslip used for permanent employees or fixed-term contract employees (PKWT). For freelance employees in the Gadjian application, the payslip must not contain the Basic Salary component.
Third, make sure that you have enabled the PPh 21 settings.
Fourth, register the name of the non-permanent employee/freelancer in the Personal Details menu.
Fifth, continue by completing the Career & Remuneration data so that the application can generate the payslip calculation for the freelance employee.
Sixth, process the payroll for the freelance employee through the Payroll > Payroll Sistem > Salary & THR menu.
Image: Automatically Generated Payslip from Gadjian
If we compare it with the example above, the calculation in Gadjian is already in accordance with the latest regulations.
