BPJS Protects Employee Welfare – The Social Security Agency (BPJS) plays a crucial role in protecting the welfare of employees in Indonesia. BPJS provides social and health insurance. BPJS itself consists of BPJS Employment and BPJS Health. BPJS Employment covers occupational accident insurance, death, old age, pension, and health care, while BPJS Health provides health protection. With BPJS services, employees feel safer and more protected from social and financial risks, which ultimately improves their productivity and well-being.

What is BPJS Employment?

It is a public legal entity established to provide social security for workers in Indonesia, both formal and informal. Its purpose is to provide protection against socioeconomic risks that workers may experience, such as workplace accidents, job loss, death, and old age.

What is BPJS Health?

The Social Security Agency for Health is a public legal entity responsible for administering the National Health Insurance (JKN) program in Indonesia. The JKN program aims to provide health insurance for all Indonesian citizens, enabling them to access the healthcare they need without the burden of high costs.

Scope of BPJS Services

BPJS Employment provides the following programs:

1. Work Accident Insurance (JKK)
2. Old Age Insurance (JHT)
3. Pension Insurance (JP)
4. Death Insurance (JKM)
5. Job Loss Insurance (JKP)

BPJS Health provides the following programs:

1. Health Insurance.

BPJS Employment Contributions for Workers

1. Work Accident Insurance (JKK), ranging from 0.24% to 1.74% of the worker’s salary.
2. Old Age Insurance (JHT), 5.7% of the worker’s monthly wage. 3.7% is covered by the employer (company), and 2% is deducted from the worker’s salary.
3. Pension Insurance (JP), 3% of the worker’s monthly wage. 2% is covered by the employer (company), and 1% is deducted from the worker’s salary.
4. Death Insurance (JKM), 0.30% of the worker’s monthly wage. This contribution is fully covered by the employer (company).
5. Job Loss Insurance (JKP), 0.46% of the worker’s monthly wage. 0.22% is covered by the central government, 0.14% is sourced from the recomposition of Work Accident Insurance (JKK) program contributions, and 0.10% is sourced from the recomposition of Death Insurance (JKM) program contributions.

BPJS Health Contributions for Workers

5% of the worker’s monthly wages, 4% paid by the employer, and 1% paid by the worker.

Sanctions for Companies Not Registering Their Employees with BPJS

Article 17 of the BPJS Law

Employers other than state officials who fail to comply with the provisions referred to in Article 15 paragraphs 1 and 2, and any person who fails to comply with the provisions referred to in Article 16, shall be subject to administrative sanctions.

The administrative sanctions referred to in paragraph 1 may include:

1. a written warning;
2. a fine; and/or
3. deprivation of certain public services.

More specifically, sanctions for deprivation of certain public services are regulated in Article 9 paragraph 1 of Government Regulation 86/2013, which include:

1. Business-related permits;
2. Permits required to participate in project tenders;
3. Permits to employ foreign workers;
4. Permits for companies providing labor services; or
5. Building Construction Permits (IMB).

Benefits of BPJS for Companies

1. Legal Compliance
2. Employee Welfare
3. Company Reputation
4. Financial Protection
5. Operational Efficiency

Conclusion

By understanding and fulfilling the obligations of registering employees with the BPJS (Social Security Agency), companies can create a better work environment, improve employee welfare, and maintain the company’s reputation.

Confused about managing BPJS for your employees? Contact Indoservice now!

Indoservice provides BPJS management services, both BPJS Employment and BPJS Health, specifically for Indonesian workers (TKI) and foreign workers (TKA) in Indonesia. 

Don’t hesitate to contact us to discuss your BPJS needs. Contact us via email at admin@indoservice.co.id or Telp. / Whats App at +62877-1449-8500.