Wages in Japan are usually set on a gross basis (tax included), with income taxes and insurance premiums deducted from employees' wages, and companies generally paying taxes and insurance premiums for all employees at once. This is based on the understanding that paying income taxes and insurance premiums is an individual's responsibility. On the other hand, in Indonesia, there are both gross and net (take-home pay) settings. Why is this happening?

[Complicated overtime wage calculation]

In Indonesia, overtime work is still a pleasure, and there is a strong tendency to want to do it more and more. This is because overtime work results in significantly higher wages than normal. Under current laws and regulations, overtime work on regular working days is 1.5 times the first hour, double the second and subsequent hours, and overtime on holidays is double the first 8 hours, triple the 9th hour, and quadruple the 10th and 11th hours. This type of overtime work is particularly common among field workers, but in Indonesia, where there is a large gap between rich and poor, the wages of field workers cannot be said to be high. That's why many people want to increase their income by working more overtime. If a company operates 24 hours a day with 3 shifts, there is no income other than wages, so employees often want the company to operate 24 hours a day with 2 shifts + 3 hours of overtime. If you work full time with 3 hours of overtime every day and 3 hours of overtime on Saturdays, you will receive overtime wages for 295.5 hours per month, which is 2.5 times your regular monthly wage. In addition to being very particular about overtime wages, and because the calculations are complicated, there is a strong desire to calculate wages online and confirm that your understanding is correct, which is one of the reasons why people stick to the Internet.

[You can't feel safe without internet settings]

If you only work overtime, you can check your gross pay slip. On the other hand, income tax calculation in Indonesia is complicated and difficult for employees to understand. I think the complexity itself is about the same in Indonesia and Japan, but the degree to which I think ``this is how it is because the company has calculated it properly'' is different. The people of Indonesia, which has gone through a long colonial period, still have a strong image that companies unfairly exploit them. Therefore, if the calculation is not the same as what you calculated, you will be suspicious, making it difficult to have a harmonious labor-management relationship. In that case, many companies choose online settings because it is clearer to sign a contract based on the amount received. In the case of online settings, after calculating the take-home pay amount, the income tax portion is grossed up. The grossed-up amount is considered the employee's wage amount, but if income tax is deducted from it and the company pays the tax, it will match the wage amount as understood by the employee. So what about social insurance premiums? This handling seems to vary depending on the company. The company enrolls all employees in two types of social security, each with a set amount for the company and for the employee. In some cases, the company also pays the employee's social insurance premiums, with the understanding that internet setup is the take-home pay, which is the amount that is transferred to the employee. On the other hand, since insurance premiums are deducted from wages, the employee's share of social insurance premiums may be deducted from the net wage. This method is not difficult to calculate, so employees seem to accept it relatively well.