Is All-In Salary Without Benefits Safe? Here’s the Full Explanation

In the recruitment process, the term “all-in salary” is often a key consideration for both candidates and HR professionals. An all-in salary means that all components of compensation—basic salary, fixed allowances, and other incentives—are bundled into a single amount offered to the employee. But this raises an important question: Is an all-in salary without benefits safe?

Let’s break it down in terms of HR practices in Indonesia, legal implications, and the impact on both companies and employees.

What Is an All-In Salary?

An all-in salary refers to a payroll system in which all components of an employee’s income—basic salary, fixed allowances, and even variable allowances—are combined into a single total figure. In this system, there is no breakdown of separate allowances like meal, position, or transportation benefits.

So, if the offered all-in salary is IDR 12 million, that amount already includes all forms of regular compensation, both fixed and variable.

Is the All-In Salary Practice Common in Indonesia?

The all-in salary practice is not very common in Indonesia, as the country’s labor system emphasizes separating salary components. This is especially relevant to the calculation of Religious Holiday Allowance (THR), which, according to regulations, should only include the basic salary and fixed allowances.

Therefore, if a salary is offered as an all-in package, the full amount—including non-fixed allowances—must be used to calculate THR. This means the company may face a higher financial burden when paying THR or final compensation at the end of employment.

What’s the Difference Between All-In Salary and Separated Components?

Example of separated salary components:

• Basic salary: IDR 8 million
• Meal allowance: IDR 1 million
• Position allowance: IDR 1 million
• Other incentives: IDR 2 million (e.g., based on performance)

Only the basic salary + fixed allowances count toward THR.
The company has flexibility to adjust incentives based on performance.

Example of an all-in salary scheme:

• A flat total of IDR 12 million
• Everything is considered “fixed,” so THR is calculated from IDR 12 million
• No flexibility to add extra allowances without significantly increasing the burden

All-In Salary Without Benefits: Is It Safe?

The answer: not safe from a regulatory standpoint if the company does not provide the legally required employee entitlements.

Companies are obligated to provide:

• BPJS Kesehatan (National Health Insurance)
• BPJS Ketenagakerjaan (Social Security for Workers)
• Religious Holiday Allowance (THR)
• Minimum 12 days of annual leave after 12 months of employment

If an all-in salary is given without providing these rights, it violates Indonesian labor regulations. In such cases, the company can be reported to the Ministry of Manpower and held legally accountable.

It’s important to note that BPJS and THR are not “benefits”—they are legal obligations. Disguising them as “already included in the all-in salary” is a non-compliant practice.

What Are Actual Benefits?

Benefits refer to additional perks or advantages provided beyond the company’s legal obligations. Examples include:

• Discounts on products from company partners (e.g., telecom or electronics)
• Additional insurance outside of BPJS
• Extra leave beyond what’s mandated by law
• Wellness programs (e.g., weekly fitness, sports groups)
• Flexible working hours (e.g., hybrid or 3-day office workweek)
• Child support, internal scholarships, or career development programs

Such benefits can increase a company’s appeal and strengthen employer branding. In fact, well-established companies often offer extensive benefits to retain top talent.

Is the All-In Scheme Suitable for All Types of Jobs?

All-in schemes may be acceptable if the employment status is not that of a full-time employee (PKWT/PKWTT), but rather a freelancer or project-based worker. In this case:

• No fixed working hours
• No legal obligation to provide BPJS or THR
• Compensation is based on deliverables

So, using an all-in scheme in the context of projects or partnerships is acceptable—as long as it’s not used for full-time employment.

Conclusion

An all-in salary without benefits is not a safe scheme if it does not comply with Indonesian labor laws. While this structure can be used, it must still ensure:

• Employee rights are fulfilled (BPJS, THR, leave)
• Flexibility for additional compensation
• Alignment with company budgeting and fairness toward employee performance

As a candidate, it’s crucial to read your contract carefully and directly ask HR about salary breakdowns, benefits, and company obligations. As an HR professional, ensure that payroll systems are not only cost-efficient but also legally compliant and attractive in the long term.

If you or your company needs consultation on payroll schemes, talent mapping, or strategic employer branding, contact RecruitFirst Indonesia for tailored solutions that suit your business needs.