Top 5 Payroll Software for Indonesian Businesses

Cloud based

Cloud-based software is a payroll management system hosted on the Internet instead of on a local computer. It is ideal for distributed teams in multiple jurisdictions, allowing them to onboard employees, process salaries, and manage tax deductions compliantly from any location with an internet-connected device.

KBV Research estimates that the global cloud-based payroll software market will grow to $14.82 billion by 2031, with an annual manual growth rate of 7.1%. This growth is fueled by the benefits of software payroll cloud Indonesia, including operational efficiency and cost savings. 

Unlike self-hosted tools, this type of software payroll Indonesia is cost-effective. They often offer various features with a monthly or annual subscription fee, so you can choose which fits your company’s budget.

Beyond cutting costs, software payroll cloud Indonesia requires minimal in-house manual effort to run or update. Additionally, it automatically updates to reflect changes in Indonesian regulations, including Badan Penyelenggara Jaminan Sosial (BPJS) contributions and other legal requirements. This automated compliance relieves HR teams from worrying about system downtime, outdated policies, or security lapses, allowing them to focus on more important tasks.

On-premise

This software payroll Indonesia is usually installed on the company’s local servers and hardware. It allows the organization to control and manage installation, updates, troubleshooting, and payroll processing directly within their IT infrastructure. This system offers greater control and security over sensitive employee data, enhancing privacy. Additionally, it functions without an Internet connection, ensuring uninterrupted access and productivity. 

Furthermore, on-premise payroll software can be customized to meet various organizational needs, workforce sizes, and workflows. For instance, the software helps large enterprises with multi-department payroll processing, while small and medium-sized enterprises (SMEs) benefit from its user-friendly interface and simplified automation. This type of payroll software suits businesses with strict data privacy policies or limited internet access. However, it requires in-house technical maintenance.

HR and payroll integrated

This software payroll Indonesia combines payroll with human resource functions like employee records, attendance tracking, and benefits management. It syncs all HR, payroll, and finance tasks into a single platform to ensure simplified and error-free processing. This approach benefits businesses seeking a centralized employee data system. It simplifies employee management from hiring to retirement, reducing manual effort and increasing efficiency.

Furthermore, it eliminates the need to manually reconcile data across multiple systems. The software integrates real-time data from HR, payroll, and accounting systems, reducing discrepancies and preventing errors. It also automatically reflects all HR changes, including new hires or terminations, to payroll without delay, minimizing the risk of duplicate entries, discrepancies, and miscalculations. 

This integration aligns with industry trends. According to ADP’s 2024 Global Payroll Survey, 35% of payroll managers plan to improve payroll integration with other critical business systems. If your company shares this goal, adopting integrated HR and payroll software will help you achieve seamless operations and greater accuracy.

Payroll software with outsourcing services

Payroll outsourcing involves hiring an external company to handle some or all aspects of payroll management, including wage calculations, tax withholding, and benefits administration. This software payroll Indonesia ensures timely, compliant payments while allowing HR teams to focus on strategic initiatives instead of routine payroll processing.

For instance, if your company frequently hires independent contractors across multiple jurisdictions, managing payroll in-house can be costly and complex. Instead, outsource payroll to a global provider. This approach cuts costs, reduces compliance errors, and eliminates the need to set up multiple in-house payroll systems.

A PwC study found that 59% of payroll leaders have considered outsourcing their payroll tasks to a third-party provider. Their primary reasons for outsourcing include cost savings, access to local experts, improved efficiency, and easy software maintenance. Beyond these perks, outsourcing consolidates global payroll processes into one unified system and integrates smoothly with in-house operations and other existing vendors.

Read next: The Ultimate Guide to Switching Payroll Providers

Enterprise payroll solutions

Enterprise payroll solutions are advanced software payroll Indonesia designed for large businesses with complex workforce needs. They automate payment, tax compliance, and benefits management while integrating with HR, accounting, and Enterprise Resource Planning (ERP) systems. 

These tools offer comprehensive features suitable for multinational companies, including time tracking, shift scheduling, leave and absence management, real-time dashboards, and advanced reporting and analytics for compliance. Additionally, they provide high-level security to safeguard sensitive multi-country payroll data.

Automate payroll processing

Software payroll Indonesia helps businesses automate employee salaries and tax deductions, saving time and reducing manual errors. It automatically calculates wages, work hours, and contributions, ensuring timely and precise payments in line with current tax laws with minimal manual input. This efficiency sets your payroll activities on autopilot to offset the burden on your HR team.

Worried about setup and support?

Rest easy, transitioning to new payroll software doesn’t have to be hard! With Omni, we handle the heavy lifting from day one, whether it’s onboarding to data migration and local compliance setup, so your team can focus on what truly matters. 

"What I like about Omni is the impeccable support right from the beginning. Omni HR opened up new ways of managing our HR processes that we didn't know were possible."
— Karla Dacanay, Sr. Manager, People Operations at iXS

See how: iXS achieved 40% time savings through Omni

Ensure compliance with Indonesian labor laws

Indonesia has strict employment regulations covering income tax, labor practices, and social security contributions, which businesses must follow to avoid legal and financial penalties. For example, employees are taxed at progressive rates from 5% to 35%, depending on their income. Additionally, both citizens and expatriates working in Indonesia must contribute to these social security programs:

• BPJS Ketenagakerjaan—covers work-related accidents, old age benefits, and death insurance.
• BPJS Kesehatan—Indonesia's social health insurance program, which provides affordable healthcare to employees and their families.

Learn more: HR's Guide to Indonesia's Social Security Program: Sistem Jaminan Sosial Nasional (SJSN)

To ensure compliance with these laws, software payroll Indonesia automates salary calculations, tax withholdings, and BPJS contributions based on the specified rates. It also updates automatically to stay current and adapt to regulatory changes, reducing the risk of errors and penalties.

Saves time and reduce workload

With software payroll Indonesia, no more spending time and effort on repetitive tasks like calculating deductions, filing taxes, processing direct deposits, and generating reports. These tools handle these processes efficiently, reducing the administrative strain on your team. It also eliminates errors and inefficiencies from manual data entry and spreadsheet-based payroll management, ensuring a faster and more accurate payroll process.

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On average, Omni users experience a 50% reduction in payroll-related paperwork, a 40% improvement in data processing, and savings of up to SG$ 44,000 in annual costs, all while getting teams to productivity 78.5% faster.

Explore more on how you can save with Omni!

Simplifies tax and BPJS contributions

Software payroll Indonesia automates tax and BPJS contributions for precision and compliance with Indonesian labor laws. It applies the correct tax rates for each Pajak Penghasilan (PPh) income bracket, deducts BPJS contributions, and even automatically updates rates whenever regulations change. Furthermore, these tools also generate and file tax reports to ensure correct calculations, reducing the risk of regulatory audits and penalties.

Secure and reliable data management

Managing workers in Indonesia involves handling sensitive employee data, including salaries, tax details, work hours, and payments. However, fragmented data across multiple systems increases the risk of duplicate entries, miscalculations, and security breaches. Recognizing these risks, 38% of senior HR leaders plan to enhance data security for the next two to three years. 

Payroll software provides secure and reliable information management. It eliminates data silos and ensures accurate recordkeeping while seamlessly integrating with HR and systems. This integration enables payroll teams to monitor, access, share, and analyze payroll data in real time, including payslips, tax reports, and employee benefits. 

At Omni, we guarantee bank-grade protection that you can trust. Omni implements an AES-256 encryption standard (same as what banks use) to protect the transmission of data to our site. Our servers are located in physically secure, ISO 27001-certified data centers, and we apply end-to-end encryption to ensure maximum protection of your employee data.

Improve employee satisfaction

By ensuring accurate and timely salary payments, payroll software reduces underpayment issues and enhances employee satisfaction and financial well-being. Additionally, it allows employees to view their paychecks easily and update their personal information without managerial supervision. This transparency builds trust and confidence in your organization, reducing frustration, disputes, and payroll-related queries that can disrupt productivity.

Read next: HR Software Pricing and Cost: Factors to Consider

Omni HR

Affordable, functional, and suitable for modern, growing businesses—Omni is the payroll provider that your business can rely on.

Our compliance-ready payroll solution is built for growing businesses in Indonesia. Read on to discover how Omni can help you streamline your payroll processes. 

Automated payroll calculations

Omni streamlines payroll by automatically calculating employee salaries, tax withholdings, and statutory contributions, ensuring you stay compliant with Indonesian labor laws. With just one click, HR teams can disburse salaries directly on Omni, saving time and reducing the risk of manual errors. 

Once payroll is processed, digital payslips are generated and securely distributed to employees, enhancing transparency and minimizing payroll-related inquiries, freeing HR teams to focus on strategic matters. 

Integrated with employee records

With Omni, employee information is automatically synchronized with payroll. Ensure data accuracy and consistency across the system, eliminating the risk of duplicate data entry or errors.

Advanced reporting

Access preset and customizable payroll reports in just a few clicks, making analysis of historical data a breeze. HR teams can generate variance reports to review salary trends, tax contributions, and other payroll metrics. 

Scalable and compliant for growing teams

Most HRIS are built to be rigid, forcing organizations to bend their processes to fit the limitations of their software. Omni does the opposite; we designed our platform to mold to your organization’s specific and unique functions, growing and scaling alongside your team and adapting to your evolving needs. As your team gets bigger, Omni keeps up. We fit how you work, not the other way around.

‍Omni offers a global payroll solution tailored for Asian businesses. Our expert support and multi-country payroll features help you manage your distributed workforce efficiently, ensuring compliance with local laws and regulations in 190+ countries and 10+ languages. With dedicated payroll experts across the region and built-in calculators for country-specific requirements, Omni helps support multi-country payroll operations with proactive updates on regulatory changes. Structured documentation storage and automated reporting tools help Indonesian HR teams stay on top of regulatory deadlines, compliance requirements, and audit trails for standardized and compliant reporting.

Gadjian

Gadjian is cloud-based software payroll Indonesia that integrates with HR systems. It helps small and medium-sized enterprises (SMEs) monitor employee data, pay salaries, manage attendance records, and perform other payroll tasks. Gadjian also has a user-friendly interface, making it easy to utilize and adapt to the tool faster. 

Its features include:

• Automate salary and BJPS calculations compliantly to ensure accurate and timely payments.
• Track employee attendance and manage leave requests for streamlined workforce scheduling.
• Provide performance assessments to support employee development and appraisal processes.

GreatDay HR

GreatDay HR is an integrated HRIS tool that helps manage employees efficiently, from onboarding to payroll. It’s suitable for companies in various niches, including logistics, construction, retail, and hospitality. Its features include:

• Easy submission and approval of employee expenses and claims.
• Integrate payroll with attendance data for precise calculations.
• Faster appraisal process with real-time tracking, graphical progress charts, and comprehensive performance history record.

Linov HR

LinovHR is a software payroll Indonesia suitable for SMEs and large corporations. It helps automate core HR tasks, offering a comprehensive talent management system with features such as:

• Optimize employee attendance tracking and scheduling with flexible tools.
• Automate salary calculations, manage various types of employee allowances and bonuses with ease.
• Plan, execute, and monitor employee training programs to upskill your workforce. ​

Mekari Talenta

Mekari Talenta offers comprehensive HR and payroll features for businesses in retail, logistics, technology, and trading. Its features include:

• Automate payroll calculations and tax filings for seamless and accurate disbursement.
• Enable employees to clock in and out via smartphones and liveness validation for fraud prevention.
• Employee self-service for managing leave requests, benefits, and payslips.