Nov
Mandatory Benefits in Indonesia: BPJS Ketenagakerjaan & BPJS Kesehatan Explained
Indonesia requires every employer—local or foreign—to register employees in the national social security system, consisting of BPJS Ketenagakerjaan (employment security) and BPJS Kesehatan (healthcare). Failure to comply can lead to administrative fines, business license complications, and reputational risks.
BPJS Ketenagakerjaan
BPJS Ketenagakerjaan provides protection at work and long-term welfare through four mandatory programs:
- Workplace Accident Benefits (JKK)
- Old-Age Savings (JHT)
- Pension Program (JP)
- Death Benefits (JKM)
Contribution Rates (Government Regulation No. 44/2015 & 45/2015):
| Program | Employer Contribution | Employee Contribution | Notes |
| Workplace Accident (JKK) | 0.24% – 1.74% | 0% | Based on risk classification |
| Old-Age Savings (JHT) | 3.7% | 2% | Mandatory |
| Pension (JP) | 2% | 1% | Salary cap applies (IDR 9,559,600 in 2025) |
| Death Benefit (JKM) | 0.3% | 0% | Fixed rate |
BPJS Kesehatan
This ensures healthcare for employees and their families. Contributions are:
- Employer: 4% of monthly salary
- Employee: 1% of monthly salary
Salary cap: IDR 12,000,000 (Regulation No. 21/2016).
BPJS Konstruksi
Separate from the above, BPJS Konstruksi is mandatory for all construction projects. It protects project-based and temporary workers against workplace accidents during construction. Contributions are paid by the project owner/contractor, not deducted from employees.
Real Case
In 2018, a foreign-owned construction company in Bali faced sanctions when inspectors found its project workers were not registered under BPJS Konstruksi. The project was temporarily halted until compliance was achieved—causing financial and reputational losses.
Conclusion
BPJS is more than a compliance requirement—it reflects responsible employment practices. Foreign employers must budget contributions into payroll and register workers from day one to avoid risks.
For HR compliance assistance, contact Urwah AlBarki (+62 815-1852-024).
References
- Law No. 24/2011 on Social Security Administering Body (BPJS)
- Government Regulation No. 44/2015 on Workplace Accident and Death Benefits
- Government Regulation No. 45/2015 on Old-Age and Pension Benefits
- Minister of Public Works Regulation No. 5/2014 on Construction Worker Social Security (BPJS Konstruksi)
- BPJS Kesehatan Regulation No. 21/2016 on Healthcare Contribution and Salary Cap
- Supreme Audit Findings on BPJS Compliance (BPK, 2018)
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