According to article 86 Indonesian Law Number 13 the Year 2003 concerning Manpower, each labor has a right to get the protection of safety and healthy during their work. The right to get the protection is applied in giving insurance through The Social Insurance Administration Organization. The Social Insurance Administration in Indonesia is Badan Penyelenggara Jaminan Sosial or BPJS. There are two types of BPJS such as BPJS Kesehatan and BPJS Ketenagakerjaan. Herewith the explanation about The Manpower Insurance or BPJS Ketenagakerjaan.
The Manpower Insurance or BPJS Ketenagakerjaan
The Manpower Insurance or BPJS Ketenagakerjaan is an insurance that provides programs with the aim of protecting all workers in Indonesia. Whether it is formal workers or informal workers. The programs and benefits of BPJS Ketenagakerjaan include:
- Workplace Accident Insurance
- Retirement Insurance
- Provident Fund Insurance
- Death Insurance
- Non-Wage Recipient Program
- Program for the Construction Services Sector
The Benefit for the 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. In addition, by joining BPJS Ketenagakerjaan, you can participate in social and economic welfare. By registering BPJS Ketenagakerjaan, a company can transfer its financial responsibility. Hence, it can still help its employees who experienced accidents.
BPJS Ketenagakerjaan Contribution Fees
BPJS Ketenagakerjaan contribution fees are 3% of monthly basic salary. The fee divided into 2% for Provident Fund Insurance, and 1% for Retirement Insurance. It is important to understand that BPJS Ketenagakerjaan is the right of employees which must be fulfilled by the Company. Therefore, register your company for BPJS Ketenagakerjaan immediately to grant your employees’ rights.
The government will monitor each company through a BPJS system. If the company does not comply with the regulation, as a result, there will be sanctions. Sanctions for a company are:
1. written warnings
2. fines; and/or
3. rejection of their application for business or operational permits and other licenses.
Register for BPJS and Pay BPJS Premi Through Indo-Ned Consultancy
BPJS Ketenagakerjaan is one of the company's most important obligations. As a result, the businessmen must understand well about the BPJS system. Our explanation above makes easier for you to understand further about BPJS Ketenagakerjaan. However, no need to be confused with the regulation or bureaucracy. Because Indo-Ned Consultancy has extensive experience in assisting companies in conducting their business-related activities. In other words, we can assist in registering BPJS and to comply with the applicable regulation of Indonesia.
The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.