Prabowo Teken PP 6/2025: Mandatory Layoff Workers Get 60 Percent Salary For 6 Months

A number of employees walked home crossing Jalan Jenderal Sudirman, Jakarta in April 2020 (Between-Akbar NG)

JAKARTA - President Prabowo Subianto signed Government Regulation (PP) Number 6 of 2025, which includes regulating workers affected by Employment Termination (PHK) to benefit from cash of 60 percent of wages for a maximum of six months.

This is regulated in Article 21 of Government Regulation (PP) Number 6 of 2025 concerning Amendments to PP 37/2021 concerning the Implementation of the Job Loss Guarantee Program (JKP), as quoted from a copy of the PP in Jakarta, Sunday, February 16.

"The benefits of cash are given every month by 60 percent of wages, for a maximum of six months," according to Article 21 paragraph (1) in PP Number 6 of 2025, confiscated by Antara.

In this article, it is also regulated that the wages that form the basis for paying the benefits of JKP are the last wages reported by employers to BPJS Ketenagakerjaan with a maximum limit of IDR 5 million. If the wages of workers exceed the upper limit of wages, the wages used as the basis for paying the benefits of cash are the upper limit of wages, as quoted from Article 21 PP 6/2025.

In the regulation signed by President Prabowo Subianto on February 7, 2025, there are several articles that have changed.

These changes, among others, are changed in Article 11, the amount of JKP contributions is also changed. Previously, the dues were set at 0.46 percent of wages per month, now reduced to 0.36 percent sourced from the contributions paid by the Central Government and the source of JKP funding.

The contribution from the central government, which is 0.22 percent of the monthly wage. Meanwhile, JKP funding sources only come from the JKK Program contribution recommendation of 0.14 percent of the monthly wage.

In addition, in the PP, there are also additional provisions, namely Article 39A for Paragraph (1) which states that the company is declared bankrupt in closing in accordance with the provisions of the legislation and in arrears of dues no later than 6 (six) months, the benefits of JKP are still paid by BPJS Ketenagakerjaan.

"The provision for payment of JKP benefits as referred to in paragraph (1) does not erase the obligation of Entrepreneurs to pay arrears and fines for the employment social security program," reads paragraph (2) article 39A.