Employee Offboarding Checklist for Companies in Indonesia and Taiwan

When an employee leaves a company operating in both Indonesia and Taiwan, you are not running one offboarding process — you are running two, simultaneously, with different legal deadlines, different social insurance systems, and different termination rules. Miss a BPJS deregistration or a 資遣費 calculation and you inherit ongoing liability. This checklist covers both systems so your ops team closes both files cleanly.

Why Cross-Border Companies Get This Wrong

Most Indonesian HR tools handle BPJS. Most Taiwanese tools handle 勞健保. None of them handle both — so companies with headcount in both countries manage offboarding across two disconnected systems, often with the local HR lead in each country unaware of what the other is doing.

The result: an employee exits your Jakarta office, payroll stops, BPJS gets deregistered — but their Slack access, shared credentials, and GitHub membership stay active for weeks because nobody owns the cross-border close-out. Or the reverse: the Taipei team deregisters 勞保 correctly, but payroll in Indonesia keeps running for another month because the Jakarta ops lead wasn't looped in.

These are not hypothetical mistakes. They are what happen when you run two countries from two spreadsheets. Every item below has a deadline. Start the clock on the employee's last working day.

Indonesian Offboarding: The Legal Checklist

Under PP 35/2021 (the implementing regulation for UU Cipta Kerja on employment termination), Indonesian law distinguishes three categories of termination compensation:

1. Pesangon (severance pay): 1 month wage per year of service. Multipliers apply depending on reason for termination — efficiency layoffs, business closure, and mutual separation each carry different multipliers (0.5× to 2×). Document the reason correctly; the multiplier is auditable.
2. Uang penghargaan masa kerja (service reward): Applies from year 3 onwards. Scale: 2 months for 3–6 years, 3 months for 6–9 years, 4 months for 9–12 years, up to 10 months maximum.
3. Uang penggantian hak (rights compensation): Covers unused annual leave, housing and medical allowance (15% of pesangon + service reward), and relocation costs if applicable.

BPJS Ketenagakerjaan: Deregister the employee through your employer portal by the 20th of the month following termination. Failure to deregister means continued contribution liability even after the employee stops working.

BPJS Kesehatan: Similarly deregister from health insurance. If the employee is moving to a new employer, the new employer takes over; if not, coverage can convert to individual (PBPU) membership.

PPh 21 final calculation: Run a year-end PPh 21 reconciliation even mid-year. Pesangon is taxed at a progressive rate: 0% on the first IDR 50 million, 5% on IDR 50–100 million, 15% above IDR 100 million. Issue the bukti potong (tax withholding receipt) to the employee.

Taiwanese Offboarding: The Legal Checklist

Taiwan's Labor Standards Act (勞動基準法) governs most private-sector employment. Offboarding has three financial obligations and three insurance deregistrations.

資遣費 (severance pay): Under LSA Article 17, 1 month of average wage per full year of service. Average wage = total wages in the 6 months before termination ÷ 6. Partial years are pro-rated proportionally. There is no multiplier system as in Indonesia — the formula is uniform regardless of termination reason, as long as the reason qualifies under the LSA.

勞工保險 (勞保, Labor Insurance): Deregister through the Bureau of Labor Insurance within 3 days of the employee's last day. Late deregistration generates continued premium liability.

全民健康保險 (健保, National Health Insurance): Deregister at your group insurance unit within the same 3-day window. The employee transitions to household-based or individual coverage.

勞工退休金 (勞退, Labor Pension): Make the final monthly contribution for the month containing the employee's last day. There is no lump-sum settlement obligation for the DC pension scheme (post-2005 system) — those funds stay in the employee's individual account at the Bureau of Labor Funds.

二代健保補充保費 (Supplemental NHI Premium): If the final paycheck includes non-salary income (e.g., bonuses), the 2.11% supplemental NHI premium applies. Calculate and deduct before cutting the final check.

The Problem Both Countries Share: System Access

Neither Indonesian law nor Taiwanese law tells you to revoke Slack access. That's your problem. And it is a real one.

When a regional sales lead leaves your Jakarta office, they often still hold credentials for tools shared across the ID and TW teams: cloud dashboards, shared inboxes, finance tools, CRM. These are rarely on a per-country basis. The Indonesia HR team closes BPJS. The Taiwan HR team closes 勞保. Nobody closes the AWS console.

The standard manual checklist approach fails because there is no single owner. The Jakarta ops lead deactivates the local tools. The Taipei ops lead deactivates the local tools. But shared cross-border credentials — the Google Workspace account, the shared password manager entry, the GitHub org — fall through the gap.

This is precisely the gap Optserv's Account Sharing module closes. When an employee is marked as terminated in Optserv, every account linked to that person — regardless of which country the account is operated from — is flagged for revocation in a single workflow. No separate ticket to IT in Jakarta, no separate request to the Taipei ops lead. One action, one audit trail.

For a deeper look at credential management at offboarding, see our article on how to revoke employee access automatically and managing shared team passwords.

Side-by-Side: Indonesia vs Taiwan Offboarding Deadlines

Step-by-Step: How to Run Cross-Border Offboarding

1. Confirm last working day and termination reason in writing — affects Indonesia's pesangon multiplier.
2. Calculate pesangon using the PP 35/2021 formula; factor in service reward for employees with 3+ years.
3. Calculate 資遣費 using the Taiwan LSA formula: (total wages last 6 months ÷ 6) × years of service.
4. Deregister from 勞保 and 健保 within 3 days of last day (Taiwan).
5. Process the final 勞退 contribution for the current month (Taiwan).
6. Deregister from BPJS Ketenagakerjaan and BPJS Kesehatan before the 20th of the following month (Indonesia).
7. Run PPh 21 final calculation and prepare the bukti potong (Indonesia).
8. Cut final paycheck in both countries — include all accrued leave, allowances, and calculated severance.
9. Revoke all system access — email, Slack, GitHub, cloud dashboards, shared credential vaults — in one pass.
10. Collect company property — laptop, access cards, any equipment held in either country.
11. File termination paperwork with local labor authorities if required (Indonesia: Kemnaker report for certain termination types).
12. Archive the employee record with full audit trail in your HR system.

FAQ

Does an employee get severance if they resign voluntarily in Indonesia? No. Pesangon under PP 35/2021 is an employer obligation triggered by employer-initiated termination (PHK). Voluntary resignation does not entitle the employee to pesangon, though they retain rights to accrued benefits and uang penggantian hak for unused leave.

Does Taiwan's 資遣費 apply to voluntary resignation? No. 資遣費 under LSA Article 17 applies when the employer terminates the employee under qualifying conditions (Articles 11 and 13). Voluntary resignation does not trigger 資遣費, though employees can withdraw their accumulated 勞退 DC account funds.

What happens if we miss the 勞保 deregistration 3-day deadline in Taiwan? The employer remains liable for 勞保 and 健保 premiums until the deregistration is processed. The Bureau of Labor Insurance (BLI) can impose penalties for willful non-compliance. File immediately even if late — penalties are lower than continued unpaid liability.

Can an Indonesian employee waive pesangon? A waiver signed under pressure is voidable under Indonesian civil law. Courts have set aside waivers in cases where employees signed under financial duress. Document the termination reason carefully and pay the calculated amount — the liability for getting it wrong is higher than the cost of getting it right.

Do we need to file anything with Kemnaker when we terminate an employee? For individual terminations in most private-sector companies, the obligation is to pay and deregister — not to file in advance. However, mass layoffs (PHK massal, typically 10+ employees at once) require advance notification to Kemnaker and the bipartite cooperation committee (LKS Bipartit).

Run Offboarding as One Process, Not Two

Optserv is built for companies operating in both Indonesia and Taiwan. When you mark an employee as terminated, their BPJS deregistration, 勞保 withdrawal, and all shared access revocations are tracked in one workflow — not split across two HR systems and a manual spreadsheet. Start your free trial at app.optserv.ai/signup and run your next offboarding without the cross-border gap.

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Optserv Team

Sources:

• PP 35/2021 — Peraturan Pemerintah tentang PKWT, Alih Daya, Waktu Kerja, dan PHK
• Taiwan Ministry of Labor — Severance Pay (Article 17, LSA)
• Taiwan MOL — Online Severance Pay Calculator
• BPJS Ketenagakerjaan employer obligations — Acclime Indonesia