Nowadays, the Companies in Indonesia are familiar with National Social Security Program (Badan Penyelenggara Jaminan Sosial/BPJS Ketenagakerjaan(hereafter referred to as “BJPS Ketenagakerjaan”), in which this program is mandatory by Law No. 40 of 2004 Concerning National Social Security System juncto Law No. 24 of 2011 Concerning Badan Penyelenggara Jaminan Sosial juncto Presidential Regulation No. 109 of 2013 Concerning Social Security Program Participation Phasing.
BPJS Ketenagakerjaan has severalprograms which must be registered by companies in Indonesia, such as: (i) Workplace Accident Insurance (Jaminan Kecelakaan Kerja/JKK); (ii) Retirement Insurance (Jaminan Pensiun/JP); (iii) Provident Fund Insurance (Jaminan Hari Tua/JHT); and (iv) Death Insurance (Jaminan Kematian/JKM).
What is the benefit for Company as a member of BPJS Ketenagakerjaan?
BPJS Ketenagakerjaan is a form of protection to transfer the risk of an accident which may occur at any time. By joining BPJS Ketenagakerjaan, the risk can be mitigated and provide social and economic welfare. Therefore, by registering BPJS Ketenagakerjaan, a company can transfer its financial responsibility so that it can still help its employees who experienced accidents.
To become a member of BPJS Ketenagakerjaan, the Company must submit the following requirement documents:
- The Deed of Establishment, Original and copy;
- Company Tax Identification Number, Original and copy;
- Company Trading Business License, Original and copy;
- Company Registration Certificate, Original and copy;
- Identification Card of each Employee, copy;
- Family Card of each Employee, copy; and
- A 2×3 colored photograph of each Employee.
After all above requirements has been fulfilled, the Company may apply for BPJS Ketenagakerjaan (other than manual/offline process) by following steps:
- Open the official site of BPJS Ketenagakerjaan;
- Click the "register" button and enter datas such as ID card, full name, date of birth and handphone number, then click "register" button;
- After submitting data, please wait for the notification from BPJS Ketenagakerjaan;
- After receiving the notification, bring all required documents to the nearest BPJS Ketenagakerjaan office.
- The first due payment is made directly in BPJS Ketenagakerjaan office during registration.
How much is BPJS Ketenagakerjaan contribution fees?
BPJS Ketenagajeraan contribution fees are 3% of monthly basic salary, divided into 2% for JHT, and 1% for JP. It is important to understand that BPJS Ketenagakerjaan is the rights of employees which must be fulfilled by the Company. Therefore, register your company for BPJS Ketenagakerjaan immediately to grant your employees’ rights.
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting has extensive experience in assisting Companies on conducting their business related activities. We also can provide assistance in registering BPJS Ketenagakerjaan and to comply with the applicable regulation. If you need immediate assistance, please contact the SMART Help Desk at: