Indonesian Salaries Projected to Grow 5.8% in 2026

Mercer's Remuneration Survey Insights

A recent analysis by Mercer, a global leader in workforce consulting, reveals that average salaries for Indonesian workers are expected to rise by 5.8% in 2026. This projection is based on a comprehensive survey of 588 Indonesian companies covering over 7,000 job positions. While the growth rate represents a slight slowdown from the 6.3% increase observed in 2025, it indicates continued investment in human capital across the Indonesian market.

Key Drivers of Salary Increases

The Mercer's survey highlights that despite the projected slowdown, 100% of surveyed companies plan to implement salary increases in 2026, maintaining the same level of commitment as in 2025. The primary factors influencing these decisions include:

1. Individual performance - Employee achievements and contributions remain a crucial determinant
2. Salary ranges - Companies adjust compensation to remain competitive within their respective industries
3. Company performance - Overall business results continue to play a significant role in salary adjustment decisions

Market Implications

The consistent salary growth reflects Indonesia's evolving labor market dynamics and companies' commitment to maintaining competitive compensation packages. As Yosef Budiman, Associate Director & Career Products Leader at Mercer Indonesia, noted, the survey provides valuable insights into remuneration trends across various sectors. The data suggests that while the rate of increase is moderating, Indonesian companies remain focused on rewarding their employees through salary adjustments.