Indonesian law treats household helpers as employees, not contractors. That means a written contract is required, and it must state the job scope, working hours, rest days, and salary. The contract should be in Indonesian (Bahasa Indonesia) to be enforceable in a local dispute. See the Bali Nanny Contract 2026: Legal Checklist for a plain-language breakdown of what to include.
Your helper is entitled to a THR (Tunjangan Hari Raya) bonus, paid once a year before their main religious holiday. After one year of service, this equals one full month's salary. Helpers also accrue twelve days of paid annual leave per year under Law No. 13 of 2003. If you end the employment relationship, severance applies, and the amount depends on how long they have worked for you. The Bali Nanny Severance 2026: What You Owe page explains the calculation in detail.
Many families in Bali pay cash informally and assume nothing can go wrong. In practice, a helper who knows their rights can file a claim through the local Dinas Tenaga Kerja (Manpower Office), and the absence of a contract usually works against the employer, not the helper. The formal legal employment contract vs informal cash-in-hand arrangement comparison lays out the practical trade-offs for families. Registering your helper for BPJS Ketenagakerjaan (state social security) is also a legal obligation once employment is ongoing.
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