Benefits and Limitation of Wages for Pension Program 2020 – Pension program from BPJS is social security that aims to maintain a decent standard of living for participants and/or their heirs by providing income after participants retire, suffer permanent total disability, or die.
Based on the provisions of PP No. 45 of 2015 concerning the Implementation of the Pension Program, the amount of pension benefit is the least and most adjusted every year based on the general inflation rate of the previous year and every year adjusts the highest wage rate by using a multiplier of 1 (one) plus the annual growth rate of the product the previous year’s gross domestic product.
Along with the increasing growth of Gross Domestic Product (GDP) announced by the Central Statistics Agency (BPS) No. 89/11/Th.XXII, on November 5, 2019 so that it will have an impact on the adjustment of the pension wage as a basis for calculating pension benefit contributions. In 2019 the GDP was recorded at 5.17% and in 2020 it decreased to 5.02%.
Based on the above, it has been determined:
- Pension benefits of at least Rp. 350,700 and at most Rp. 4,207,200.
- The highest limit for wages as a basis for calculating pension benefit contributions is Rp. 8,939,700.
And based on the announcement from BPJS, the matter above will take effect from March 2020 and it is hoped that the company can follow this direction.