BPJS Health and Employment is a mandatory welfare system for all employees in Indonesia, both local and foreign. Employers are required to register their workers in the BPJS Participation System, ensuring comprehensive social security coverage.

BPJS Participation Requirements

Foreign workers (TKA) who have been employed in Indonesia for at least six months must be registered with both BPJS Health and BPJS Employment. This requirement is obligatory, even if they have other insurance plans.

Overview of BPJS

The Social Security Administering Body (BPJS) is a public entity established to administer social programs. It is divided into BPJS Health and BPJS Employment.

BPJS Health

BPJS Health is responsible for managing the national health insurance program, providing health coverage for all registered participants.

BPJS Employment

BPJS Employment, known as BPJS Ketenagakerjaan, offers protection through four social security programs: Old Age Guarantee, Work Accident Insurance, Death Insurance, and Pension Guarantee.

Importance of Social Security

BPJS Employment is crucial as it mitigates socio-economic risks, including work accidents, illnesses, death, and retirement uncertainties. The Law of the Republic of Indonesia Number 40 of 2004 mandates employers to register themselves and their workers with BPJS.

Types of Social Security

1. Health Insurance

2. Work Accident Insurance

3. Old Age Guarantee

4. Pension Guarantee

5. Death Insurance

BPJS Employment Programs

1. Old Age Guarantee (JHT): Provides financial support when employees are no longer productive due to age.

2. Work Accident Insurance (JKK): Protects workers from risks associated with work accidents.

3. Death Insurance (JKM): Offers financial assistance to heirs if a worker dies while still employed.

4. Pension Guarantee (JP): Ensures financial stability during retirement, not applicable to foreign workers.

Sanctions for Non-Compliance

Companies that fail to register their employees with BPJS Employment face administrative sanctions, including written warnings, fines, and restrictions on public services such as business licenses, project tender permits, foreign worker employment permits, and labor service provider licenses.

Calculating BPJS Contributions for Foreign Workers

BPJS Employment contributions are calculated based on the employee’s wages, including basic salary and fixed allowances.

1. Work Accident Insurance Contribution (JKK): Calculated based on the level of risk in the work environment.

  - Very low risk: 0.24% of monthly wages

  - Low risk: 0.54% of monthly wages

  - Medium risk: 0.89% of monthly wages

  - High risk: 1.37% of monthly wages

  - Very high risk: 1.74% of monthly wages

2. Death Insurance Contribution (JKM): 0.30% of wages, fully paid by the employer.

3. Old Age Security Contribution (JHT): 5.7% of wages, with 3.7% covered by the employer and 2% deducted from the employee's salary.

4. Pension Guarantee Contribution (JP): 3% of wages, with 2% covered by the employer and 1% deducted from the employee's salary. The wage ceiling for calculation is IDR 8,939,700.

Benefits of BPJS for Foreign Workers

1. Comprehensive coverage for all diseases

2. Coverage for pre-existing conditions

3. Affordable premiums

4. Lifetime guarantee

5. Easy payment process

By understanding and complying with BPJS requirements, employers can ensure that foreign workers in Indonesia receive essential social security benefits, contributing to their overall well-being and job satisfaction.