The Ministry Of Manpower Guarantees That The Increase In Retirement Age Does Not Affect The Amount Of Benefits For Workers
JAKARTA - The Director General of Industrial Relations Development (PHI) and Social Security of the Ministry of Manpower, Indah Anggoro Putri, emphasized that the increase in retirement age to 59 years in 2025 will not affect the amount of benefits that will be received by workers. It is also certain that this increase will not increase the burden on entrepreneurs' contributions.
"The impact of an increase in retirement age does not affect the amount of benefits that will be received by workers and will not increase the burden of contributions for entrepreneurs," said Indah in a statement to the media, Friday, January 10.
Indah added that the Financial Health Condition of the Pension Security Program, which is managed by BPJS Ketenagakerjaan, is projected to experience a deficit in 2075.
Currently, the JP contribution is 3 percent consisting of 2 percent of employers' contributions and 1 percent of workers' contributions, with the current lowest pension benefits of IDR 393,500, and the highest IDR 4,718,200,-
"Currently, discussions are being carried out to harmonize all pension programs in Indonesia with the leading sector of the Ministry of Finance as mandated by the Financial Sector Strengthening and Development Law (UU P2SK)," continued Indah.
He explained that this was aimed at increasing the protection of workers in the old age/retirement through better benefits, taking into account the condition of the demographic bonus and the ageing population.
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Furthermore, said Indah, actually the regulation regarding the increase in retirement age has existed and has been running since 2015, which refers to the mandate of Article 15 of PP No. 45 of 2015 concerning the Implementation of the Pension Guarantee Program. 2025 is the third time the retirement age has increased since the birth of the government regulation, namely 2019, 2022, and 2025.
He explained that the retirement age in PP No. 45 of 2015 is interpreted as age when participants begin to be able to receive pension insurance benefits, not the age of quitting work from the company as stipulated in the Joint Work Agreement / Cooperative Work Agreement (PKB) / Company Regulation (PP).