Pension Age Increase To 59 Years, BPJS Employment Pension Security Disbursement Rules
JAKARTA Starting in 2025, the official retirement age for workers in Indonesia will increase to 59 years. This provision is a requirement to disburse the benefits of the Pension Security Program (JP) managed by BPJS Ketenagakerjaan.
This policy is regulated in Article 15 of Government Regulation (PP) Number 45 of 2015 concerning the Implementation of the Pension Security Program. The PP was signed by President Joko Widodo on June 30, 2015.
Based on the provisions in Article 15, retirement age is set to increase gradually. Initially, retirement age started from 56 years. On January 1, 2019, retirement age rose to 57 years. Then, this age will increase by one year every three years until it reaches a maximum limit of 65 years.
"By 2025, retirement age will be set to 59 years as a condition for disbursing the benefits of the Pension Guarantee Program," reads the provisions in Article 15, quoted on Wednesday, January 8, 2025.
Workers who reach retirement age but still work still have flexibility. They can choose to disburse the benefits of Pension Insurance when they reach retirement age, or delay disbursement until they stop working, with a maximum limit of three years after retirement.
In addition to the increase in retirement age, Government Regulation Number 45 of 2015 also regulates increasing the benefits of Pension Security every year. However, this increase is not accompanied by additional participant fees. This is designed to provide more value to participants without increasing financial pressure for workers or employers.
Baca juga:
The policy of increasing this gradual retirement age is expected to provide long-term financial protection for workers after entering retirement age. In addition, this change provides time for workers and employers to adapt, as well as prepare themselves for new policies more maturely.
With the implementation of this policy, the government hopes to create a sustainable pension system and provide maximum benefits for Indonesian workers.