Hiring household staff in Bali: fair wages, the THR bonus and doing it properly

Short answer: hiring help at home is normal in Bali, and it's legal for you to do. Do it properly: a written agreement, pay benchmarked against the regency minimum wage, a THR bonus every year and BPJS cover.

The short version

• The 2026 minimum wage in Bali ranges from Rp3,207,459 a month (the provincial UMP) to Rp3,791,002 in Badung, which covers Canggu, Seminyak, Kuta and Uluwatu [1].
• Indonesia's domestic worker regulation requires an agreement, wages as agreed, adequate rest, leave, a yearly THR bonus and enrolment in social security [2].
• THR is one month's wage after 12 months' service, pro rata from one month, paid at least seven days before the holiday [3].
• BPJS Ketenagakerjaan offers domestic workers work-accident, death and old-age cover for about Rp36,800 a month [4].
• Parliament passed a new Domestic Workers Protection Law in April 2026. Implementing regulations are due within a year, so expect more detailed rules [5][7].

Who people hire, and what changes from home

In Australia, a cleaner who comes once a fortnight is a luxury. In Bali, a live-out housekeeper five or six days a week is common among expat households, often alongside a gardener or pool person. The main roles:

Many villa leases include a cleaner or gardener already. Read the lease. If staff are the landlord's, they're the landlord's employees, and your role is to treat them well and not poach them.

The big differences from home: there's no Fair Work award for domestic workers, no super, and the relationship is personal rather than corporate. That cuts both ways. You have a lot of discretion, and staff rely heavily on your fairness.

What to pay in 2026

The minimum wage benchmarks

Bali sets a provincial minimum wage (UMP) and higher regency or city minimums (UMK). For 2026 [1]:

Klungkung, Karangasem, Bangli, Buleleng and Jembrana didn't set their own UMK for 2026 because their calculated figures fell below the provincial minimum, so the UMP applies there [1].

Does the minimum wage legally apply?

Indonesia's 2015 domestic worker regulation ties pay to what's in your agreement rather than to the UMK [2]. In practice, the UMK for your area is the fairest benchmark for a full-time role. A part-time housekeeper might be paid pro rata. Drivers are a grey area: some legal commentators treat a private driver as a regular employee under the general Manpower Law, with the same THR entitlement [3].

Our view: pay at least the local UMK for full-time work, put the figure in writing, and review it each January when new minimums come out.

What else goes in the pay packet

• Meals. The regulation lists healthy food and drink as a right [2]. For live-out staff, many families give a daily meal allowance.
• Transport. A fuel allowance for scooter commutes is common.
• Overtime. If you need weekend babysitting or a 5 am airport run, agree an hourly rate up front.

The THR bonus

THR (Tunjangan Hari Raya) is the religious holiday bonus. Employers of domestic workers must pay it once a year [2][3].

How much [3]:

• 12 months or more of continuous service: one month's wage.
• At least one month but under 12: pro rata, so length of service in months divided by 12, times one month's wage.

When: at least seven days before the religious holiday [3].

Which holiday? Most Australians assume Lebaran (Eid al-Fitr), because that's when Jakarta pays THR. In Bali, many staff are Balinese Hindu, and some employers pay before Galungan instead. Ask your staff which holiday they celebrate and write it into the agreement. Don't pay twice by accident, and don't forget a staff member from Java who goes home for Lebaran.

Social security: BPJS

The 2015 regulation lists enrolling your domestic worker in a social security programme as an employer obligation [2]. The new 2026 law also says domestic workers are entitled to health and employment social security [5].

BPJS Ketenagakerjaan (employment)

BPJS Ketenagakerjaan covers domestic workers through its non-wage-earner (BPU) membership. For about Rp36,800 a month, a worker gets three programmes [4]:

• JKK: work accident and work-related illness cover
• JKM: a death benefit for their family
• JHT: old-age savings, paid out at retirement, total disability or death

You can register your worker, or they can register themselves, through the JMO app with their e-KTP, email, phone and a bank account [4]. Paying it yourself is the simple, decent option.

BPJS Kesehatan (health)

Check whether your worker already has national health cover through their family or a government-subsidised scheme. If not, ask how you can help them join. A scooter accident with no cover can ruin a family's finances.

Doing it properly: the agreement

The regulation says you and your worker must make an agreement, written or oral, that both understand and that the neighbourhood head (Ketua RT) knows about [2]. In Bali, ask your banjar who that is. It should cover each party's identity, rights and duties, and how long it runs. A standard agreement lasts two years and can be extended or ended by mutual agreement [2].

Write it down, in Indonesian and English. Here's what to include:

1. Names and ID numbers of both of you, and the date and place of signing [2].
2. Duties. Be specific: cleaning, laundry, cooking for the kids, no pool chemicals.
3. Hours and days off. The regulation requires adequate rest and time to worship [2].
4. Pay, allowances and pay day. Paid into a bank account if possible, for a clean record.
5. THR. The amount and which holiday.
6. Leave. Annual leave, ceremony days and sick leave, as agreed [2].
7. BPJS. Who registers and who pays [4].
8. Ending the agreement. Notice on both sides and what's paid out.

The minimum age for a domestic worker under the regulation is 18 [2]. Don't hire anyone younger, however much a family asks.

Using an agency

You can hire directly or through a licensed placement agency (LPPRT) [2]. Agencies may charge you a fee but must not charge the worker, and they must refund you if the worker doesn't stay at least six months [2]. Under the 2026 law, placement companies need a business licence and are banned from cutting workers' wages [5]. If an agency asks the worker for money, walk away.

Ending employment fairly

People move on. Your lease ends, the kids start school in Australia, or it just isn't working. To end things well:

1. Talk first. Raise problems early and give a chance to fix them.
2. Give notice as your agreement says. If it says nothing, a month is a reasonable courtesy.
3. Pay everything owing: wages to the last day, agreed allowances and untaken leave you'd agreed to pay out.
4. Think about THR timing. Ending employment just before the holiday to avoid the bonus is the kind of thing your banjar will remember.
5. Write a reference. A letter on your letterhead helps them find the next job.
6. Tell your neighbourhood head that the arrangement has ended [2].

If you're leaving Bali for good, help your staff find their next family. A good reference and a word with your neighbours go a long way.

The Australian angle

• Your visa doesn't stop you employing household staff for your own home. Hiring staff for a villa you rent out to guests is a business activity, and that needs a business structure and the right permits.
• Labour rules change. Smartraveller notes Indonesian labour laws can change at short notice [6]. The 2026 domestic workers law will bring new implementing rules by around April 2027 [5].
• If something goes badly wrong, such as a theft or an accident at your house, the Australian Consulate-General in Denpasar can give consular help but can't intervene in a legal dispute [6].
• No Medicare for them, or for you. Make sure your own insurance covers liability for injuries at your home.

Want to know what other Australians in Badung or Ubud pay? Join Cooee Indonesia, our Facebook group for Australians in Indonesia, and ask how they handle THR and BPJS.

Sources

1. Tertinggi se-Bali, UMK Badung 2026 ditetapkan Rp3.791.002,57 – Koran Jakarta, December 2025
2. Minister of Manpower Regulation No. 2 of 2015 on the Protection of Domestic Workers (PDF) – peraturan.go.id
3. Cara menghitung THR untuk ART dan sopir – Hukumonline, February 2026
4. Perlindungan BPJS Ketenagakerjaan untuk pekerja rumah tangga – BPJS Ketenagakerjaan, December 2025
5. DPR setujui RUU PPRT disahkan jadi undang-undang – Antara, April 2026
6. Indonesia travel advice – Smartraveller
7. RUU Perlindungan Pekerja Rumah Tangga resmi disahkan jadi undang-undang – Ministry of State Secretariat

Keep reading

• Running a Bali villa: PLN tokens, water, internet and the wet season
• Living with the banjar: Nyepi, ceremonies and community fees in Bali
• Renting in Bali as an Australian
• Sending money home