How to read your payslip: allowances, overtime, BPJS deductions and PPh 21

Resmi.ID Team · 4 min read · Updated 1 Nov 2026

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Payslip formats vary between companies, but most are split into three parts: earnings, deductions, and net pay or take home pay (THP).

The earnings section

1. 1Base salaryThe core pay for your position or grade, usually stated in your contract or offer letter.
2. 2Fixed allowancesPaid regularly in the same amount regardless of attendance, such as a position or family allowance.
3. 3Variable allowancesAmounts that depend on attendance or certain conditions, such as meal or transport money per working day.
4. 4OvertimePaid according to the overtime hours recorded; check it against your own attendance record.
5. 5Other itemsBonuses, incentives, or THR (the religious holiday allowance) in the month it is paid.

The difference between fixed and variable allowances matters because it often affects other calculations, such as BPJS contributions. If your slip doesn't separate them, ask HR which components are treated as fixed.

BPJS Kesehatan deduction

Under Presidential Regulation (Perpres) 64/2020, the BPJS Kesehatan (national health insurance) contribution for salaried workers is 5% of monthly wages: 4% paid by the employer and 1% deducted from your pay. The wage used to calculate it is capped at Rp12 million, so the employee share is at most about Rp120,000 a month.

BPJS Ketenagakerjaan deductions

BPJS Ketenagakerjaan (the workers' social security agency) runs several programmes. According to its official website, contributions for salaried workers are split as follows.

1. 1Old Age Savings (JHT)5.7% of wages, made up of 3.7% paid by the company and 2% deducted from your pay.
2. 2Pension (JP)3% of wages, 2% from the company and 1% from the worker, with a maximum wage base that is adjusted periodically.
3. 3Work Accident (JKK)0.24% to 1.74% depending on the risk level, paid entirely by the company.
4. 4Death Benefit (JKM)0.3% of wages, paid entirely by the company.

This means the BPJS deductions you normally see on your slip are the employee share: 1% for BPJS Kesehatan, 2% for JHT and 1% for JP. Some companies also list the employer share for information, which makes the slip look longer.

PPh 21 deduction under the TER scheme

Since 1 January 2024, employee income tax (PPh 21) has been withheld using the average effective rate (TER) under Government Regulation (PP) 58/2023 and Finance Minister Regulation (PMK) 168/2023. From January to November, the tax is calculated by multiplying that month's gross income by the TER rate for your category.

Your category depends on your PTKP (non-taxable income) status: category A for TK/0, TK/1 and K/0; category B for TK/2, TK/3, K/1 and K/2; category C for K/3. So make sure your marital status and number of dependants are correct in HR's records.

December works differently. The full-year tax is recalculated using the progressive rates in Article 17 of the Income Tax Law, then the tax already withheld from January to November is subtracted. According to the Directorate General of Taxes (DJP), the total annual tax is the same as under the old method; TER only simplifies the monthly withholding.

That's why the tax deduction on your December slip can jump or shrink, especially if you received a bonus or THR in a particular month. This is normal as long as the calculation is correct. If in doubt, try the tax calculator on the official DJP website.

Gross pay and net pay

Gross pay (bruto) is your total earnings before deductions. Net pay or THP is what remains after the employee BPJS share, PPh 21 and other deductions such as cooperative instalments or staff loans. When assessing a job offer or comparing salaries, make sure you're comparing the same kind of figure.

A monthly checklist

1. 1Check your personal detailsName, NIK, NPWP, job title and PTKP status should all be correct.
2. 2Match your base salaryCompare it with your latest contract or offer letter.
3. 3Calculate daily allowancesMultiply the daily rate by the number of days you worked.
4. 4Review overtime hoursMatch them with your attendance record and overtime instructions.
5. 5Test the BPJS percentagesRecalculate 1%, 2% and 1% of the wage base.
6. 6Identify other deductionsMake sure every deduction has a basis you agreed to.

If something looks wrong

Don't jump to conclusions; many discrepancies come from data-entry errors. Gather evidence such as your slip, attendance records and contract, then ask HR or payroll in writing. For example: "Could you please check this? My October slip shows 6 hours of overtime, but my attendance record shows 10 hours."

If BPJS deductions appear on your slip but aren't recorded in your account, or if your concern goes unanswered, you can contact BPJS's official complaint channels or your local manpower office. Keep all your payslips, because you'll also need them for your annual tax return, loan applications, or claiming your rights later on.

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