Social Security (Jamasostek)

Indonesia does not have a comprehensive social security system; however, there is a worker’s social security program (Jamsostek) which provides compensation in the event of working accidents, deaths, and old age (55 years) as well as sickness or hospitalization. The program is maintained by a designated state-owned company, PT Jamsostek, and calls for premium contributions for the following:

As a percentage of regular salaries/wages

Areas covered        Borne by employers             Borne by employees

 

Working accident                     0,24-1,74                       –

protection

Death insurance 0.3%  
Old age saving 3.7% 2  
Health care* 3%  

 

 

 

 

 

*) Maximum Rp 60,000/month for a married employee and Rp 30,000 for a single employee

Employers are held responsible for ascertaining that their employees are covered by Jamsostek. Employees’ contributions are collected by the employer through payroll deductions. These must be paid to PT Jamsostek together with the contributions borne by the employers.

Expatriates need not be enrolled in Jamsostek if they can provide evidence that they are covered by social security programmes of the same type in their home country. A company which provides better company health insurance to its employees can choose not to join the health care programmed under Jamsostek.

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