What are the Social Security Contributions in Indonesia?

In Indonesia, the Worker’s Social Security Program, known as BPJS Ketenagakerjaan, provides essential protection to employees through various social security schemes. These contributions are based on employees' gross income and are crucial for ensuring financial security in case of work-related incidents, health issues, or retirement. Here’s a detailed overview of the social security contributions for 2024:


Social Security Schemes and Contribution Rates

  1. Death Security (JKM)

    • Contribution Rate: 0.3% of gross income
    • Purpose: Provides benefits to the family of employees in the event of death.

  2. Health Security (BPJS Kesehatan)

    • Contribution Rate: 4% of gross income
    • Maximum Salary Basis: IDR 12,000,000
    • Purpose: Covers medical expenses and health care services for employees.

  3. Old Age Security (JHT)

    • Contribution Rate: 3.7% of gross income
    • Purpose: Provides financial support to employees upon reaching retirement age.

  4. Pension Security (JP)

    • Contribution Rate: 2% of gross income
    • Maximum Salary Basis: IDR 9,559,600
    • New Salary Cap (effective April 2024): IDR 10,042,300
    • Purpose: Ensures a pension for employees after retirement, offering a steady income during retirement years.

  5. Work Accident Security (JKK)

    • Contribution Rate: 0.24% of gross income
    • Purpose: Provides financial protection in case of work-related accidents or occupational diseases.


Contribution Management

  • Calculation Basis: All contributions are calculated based on the employee’s gross income, ensuring that the amounts deducted are proportional to the earnings.
  • Payment Responsibility: Employers are responsible for deducting and remitting these contributions to the relevant BPJS Ketenagakerjaan authorities.


Importance of Social Security Contributions

These social security contributions are designed to protect employees by providing financial support in various situations, such as health issues, work-related accidents, retirement, and death. Ensuring accurate and timely payment of these contributions is essential for compliance with Indonesian regulations and for safeguarding employees' welfare.


For more detailed information or updates regarding social security contributions and benefits, refer to official BPJS Ketenagakerjaan resources or consult with a local advisor.

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