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Types of Payroll Systems in Indonesia

Every company certainly has to pay the salary of each employee. Because salary is a right that must be given by the company for the performance given by employees. Without employees, the business certainly cannot develop rapidly. Therefore payroll cannot be done haphazardly because the amount must match. Usually this task will be carried out by the HRD team. With this type of payroll system in Indonesia, the HRD team can now do their job easily.

Compared to the manual method, implementing a payroll system in companies can certainly be relied upon in paying employees. You no longer need to calculate the salaries of each employee conventionally because now everything is integrated in a system that makes the process automatic. Even so, not all companies have integrated this type of software.

What is Payroll System?

The payroll system is a software designed to make it easier to calculate employee salaries at each company. Doing payroll manually, of course, has been done by every company over time. However, these old methods are no longer effective in the modern era like today. Moreover, manual payroll can take a long time and is prone to errors. That's why HR can now pay employees quickly and precisely with the help of a payroll system.

Types of Indonesian Payroll Systems

Payroll systems have many types and can be adapted to the needs of each company. Because each company has different conditions, the selection of a payroll system cannot be equated. Several types of payroll systems that are most widely used by companies in Indonesia include the following:

Payroll Service

First, the type of payroll system in Indonesia is payroll service. This type of payroll is very often used by companies compared to the others. Why? Because company data will be stored automatically on the company's servers.

Because employee data is stored automatically on the company's server and does not involve third parties in the process, of course, this payroll service system is safer to use. However, companies need to prepare a number of things well so they can implement this system smoothly.


The cloud payroll system is a payroll software that uses a cloud server as its storage medium. This type of software is certainly very safe and provides flexibility to all users.

Because cloud-based software can be easily accessed using the internet network. Generally, cloud-based software will also be managed directly by IT service providers so that its use is easier and also practical.

Payroll Hosted

Just as the name suggests, this type of payroll system that is widely used by companies in Indonesia, this one takes advantage of the third party in terms of data storage. Even though the host location is in a remote location, companies can access it easily using a computer in the office so they can get the data they need.

The advantage offered by payroll hosted for its users is that companies do not have to buy software or build their own servers. Thus the payroll process is very easy to do.

So, those are the types of payroll systems that exist in Indonesia and you can apply them to support business operations. Choose Soltius as a business-based IT service provider that can support the best payroll system for your company. Check the information only at

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