Salary Non Disclosure Agreement Template for Indonesia

The Salary Non-Disclosure Agreement is a crucial document used in Indonesian business operations to protect sensitive compensation information. It becomes necessary when employees have access to salary data, compensation structures, or benefits information that requires confidential handling. This agreement, governed by Indonesian law including Law No. 13 of 2003 on Manpower and relevant privacy regulations, establishes clear guidelines for maintaining salary confidentiality while ensuring compliance with local employment regulations. The document is particularly important in organizations with structured compensation systems, multiple employee levels, or where salary information could provide competitive advantages to other market players.

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, employment relationship, and purpose of the NDA

3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Salary Information', 'Disclosure', and 'Permitted Recipients'

4. Scope of Confidential Information: Detailed description of what constitutes salary-related confidential information

5. Confidentiality Obligations: Core obligations regarding non-disclosure of salary information and related data

6. Permitted Disclosures: Circumstances under which salary information may be disclosed (e.g., to tax authorities, required by law)

7. Security Measures: Required measures to protect confidential salary information

8. Duration of Obligations: Time period for which the confidentiality obligations remain in effect

9. Consequences of Breach: Penalties and remedies available in case of violation

10. Return of Confidential Information: Requirements for returning or destroying confidential information upon termination

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes