BPJamsostek Deducts 90 Percent Of Contributions, Asked Entrepreneurs Not To Layoffs

JAKARTA - The Social Security Administering Body (BPJS) for Employment or BPJamsostek supports the Indonesian government's policy, which announced plans to relax participant contributions related to the pandemic of the corona virus outbreak or COVID-19.

BPJamsostek President Director Agus Susanto explained that the contribution relaxation referred to is the Work Accident Security (JKK), Death Security (JKM) and Pension Security (JP) programs. So, employers or employers can save costs, and avoid layoffs (PHK).

"BPJamsostek fully supports this policy so that it can help companies or employers. Not layoffs and ensure THR payments," he said, in a written statement received by VOI, in Jakarta, Friday, May 1.

According to Agus, with this relaxation, entrepreneurs can save money amid the COVID-19 pandemic. This relaxation is also for the benefit of the workers.

"The amount of compensation that can be saved by employer participants from the adjustment of the JKK, JKM and JP program contributions reaches Rp. 12.6 trillion," he said.

Agus explained that the JKK and JKM program contributions are planned to be cut by 90 percent or enough to be paid by the employer by 10 percent every month. This policy is valid for three months and can be extended for another three months based on government evaluation.

Then, for JP dues, the plan is to pay only 30 percent every month for three months. Meanwhile, the remaining 70 percent payment can be postponed until the next six months.

Especially for the Old Age Security (JHT) contribution, it does not get relaxation and is still paid by employers and workers in accordance with applicable regulations.

Agus also emphasized that giving benefits from the JKK, JKM and JP programs to participants will not be affected or reduced even though there is a relaxation of these contributions.

However, Agus said, the implementation of the premium relaxation policy still has to wait for the issuance of a Government Regulation (PP), which is currently being finalized by the government.

For your information, due to the outbreak of the COVID-19 virus in the country, the number of workers who have been laid off and laid off throughout Indonesia has so far reached 1.7 million people. The details were 375 thousand formal workers were fired and 1 million workers in the formal sector were laid off.