Find out how an Employer of Record can help you to hire employees in Bali.
There are many reasons why to hire employees in Bali. For example, you might be looking for a cost-effective way to hire employees to serve your overseas customers. Or you have clients in Bali, and you certainly wish to help them by hiring local employees.
An Employer of Record is a service provider that enables you to hire employees without setting up an entity in Bali.
In this article, we will describe how to use an Employer of Record when hiring employees in Bali.
Benefits of using Employer of Record to hire employees in Bali
Comply with employment regulations in Bali
Indonesia and similarly Bali are infamous for their messy and constantly changing legal system. Including hiring policy procedures of employees in Bali. But, this is not a stress factor if you use VIVO ASIA ’s EoR service. We will take care of all the compliance and legal matters.
VIVO ASIA will determine the suitable business classification, employment contracts and benefits under the employment regulations, accurate payroll and tax calculation. We can also inform you of all the things you need to know when hiring and managing your staff.
Lower costs to test the market in Bali
Employer of Record enables you to test your business idea in Bali. Especially with minor financial contributions and risk, in case your business model involves hiring Indonesian or foreign employees. Thus, there is no need to set up a company, take care of monthly and annual compliance and rent an actual or virtual office.
Besides setting up, shutting down a company in Indonesia involves expenses as well. Using an Employer of Record is more cost-efficient than setting up your company, especially if your primary purpose is to hire employees in Bali or test the market.
Hire and expand fast in Bali
Using the Employer of Record service instead of setting up a company will save you a lot of time and energy in hiring employees in Bali. Moreover, employees can start working immediately without the need to wait for the company registration, which depending on the business classification, can take from a few weeks up to months.
Using the Employer of Record allows you to kick off right away.
Focus on your core business
Employer of Record service will allow you to focus on your core business. Hence, you do not need to spend days to fulfill the monthly administrative and compliance obligations. Above all, VIVO ASIA will take care of the administrative tasks and legalities of employment that leave you more time to focus on developing your business.
Hiring employees in Bali to set up remote operations
Bali is clearly becoming more and more popular among foreign companies to hire employees and expand their business. The main reasons are smaller wages compared to other provinces in Indonesia, availability of skilled talents with good English, and an option to relocate talents from different locations.
Denpasar, the capital city of Bali, is one of the rising urbanites in Indonesia next to Semarang and Makassar, as stated by Alpha JWC Ventures and Kearney. Similarly, it has a growing number of middle-class consumers and developing digital and logistical infrastructure, indicating promising growth opportunities for digital development.
Minimum wage comparison between Bali and the rest of Indonesia
The provincial minimum wage of hired employees in Bali is lower compared to Jakarta. In Jakarta, the minimum wage is IDR 4.276.349, while in Bali, it is IDR 2.493.523. The minimum wage is also lower than other metropolitans, such as Surabaya and Bandung, and rising urbanites such as Semarang.
Denpasar | Semarang | Bandung | Surabaya | Jakarta |
IDR 2.770.000 | IDR 2.850.000 | IDR 3.750.000 | IDR 4.300.000 | IDR 4.420.000 |
Even though the minimum wages are lower in Bali, finding skillful talents fluent in English is easy. In addition, according to EF’s English Proficiency Index 2019, Bali surpassed Jakarta as the province with the highest English proficiency in Indonesia.
Salary standards in Bali
Compared to western countries, Indonesia, particularly Bali, has a lower average salary. The table below further shows the comparison of the average job salaries per year in the technology sector in Singapore, Australia, and Indonesia, based on Salary Benchmark 2020 of Michael Page.
Overall, the yearly salary in Indonesia is up to 25% lower for a graphic designer, up to 33% lower for a digital marketing manager, and up to 27% lower for a software engineer compared to Singapore and Australia.
| Graphic Designer | Digital Marketing Manager | Software Engineer |
Indonesia | USD 14.322 | USD 31.171 | USD 21.061 |
Singapore | USD 56.620 | USD 95.876 | USD 52.090 |
Australia | USD 52.601 | USD 87.411 | USD 77.355 |
| | | |
Hiring employees using Employer of Record is a great choice to set up remote operations in Bali. Given these facts on minimum wage and salary comparison.
Hire employees in Indonesia without a local entity
Employer of Record (EOR) service lets you build a team in Indonesia without registering a company or managing local tax and compliance.
The easiest way to hire employees in Indonesia
Setting up a company and hiring employees comes with a lot of bureaucracy. Let VIVO ASIA hire your employees in Indonesia on your behalf.
Employment contracts prepared and signed by VIVO ASIA
VIVO ASIA collects all the documents from your employees and signs employment contracts with them based on your requirements.
Employees get local HR support
Our team serves as your outsourced HR team and handles any questions or issues your Indonesian employees might have
One monthly invoice
Once a month send us your salary adjustments, bonuses, reimbursements, etc. We will manage all the payroll and send you one invoice.
Provide your team work stations and laptops
Don’t want your team to work from home or need to provide them tools? Tell VIVO ASIA what you need and we will take care of that.
Build a business in Indonesia without setting up a company
You don’t need to register a company to hire full-time employees in Indonesia. Using VIVO ASIA as an Employer of Record allows you to quickly start hiring local customer support, sales, engineers, etc.
You choose the talent, we take care of the legalities
You need a way to legally hire your offshore employees. That’s where VIVO ASIA’s Employer of
Record service comes in.
You choose who you want to hire. We can help you find and recruit but the hiring decisions are made by you. The remote employees work directly for you. We take care of the contracts, payroll, and tax.
| Freelance site | Business process outsourcing | Employer of Record |
You manage projects and processes | Yes | No | Yes |
HR matters are handled by the service provider | No | Yes | Yes |
Decide who works on your project | Yes | No | Yes |
Hiring remotely with VIVO ASIA
Choose the talent you want to hire or work with VIVO ASIA’s recruiters to find them.
VIVO ASIA signs employment contracts with your employees and charges you a monthly service fee (10% of the salary).
The employees will be working for you. You should treat them as your in-house employees. We will serve as the local HR department – manage the payroll, report taxes, and answer any employment queries.
Optionally, we also provide workstations in our offices.
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