Social security system

Employers are responsible for ensuring that their employees are covered by a social security program. Employees’ contributions are collected by the employers through payroll deductions. These must be paid together with the employer’s contributions.

From 1 January 2014, a comprehensive social security program covers all Indonesian citizens is in place. The transition from the previous system is being done gradually. The new social security system is administered by:

1. Social Security Agency for health insurance (BPJS Kesehatan) – covering health insurance

2. Social Security Agency for worker’s social security (BJPS Ketenagakerjaan) – covering accidents, insurance, old age savings, death insurance and pensions

The current premium contributions are as follows:

*) Maximum calculation base is Rp 8,000,000/month
**) Maximum calculation base is updated annualy based on BPJS regulation

The compulsory requirement to join the new social security scheme applies to all employees, including expatriates who have been working in Indonesia for more than six months.

The compulsory requirement for health insurance for independent workers and non-workers is applicable from 1 January 2019.

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