Ministry of Finance: 95.45 Percent of JHT Claims Not Subject to Final Income Tax

Illustration (Photo: ANTARA)

JAKARTA - The Ministry of Finance (Kemenkeu) has confirmed that the disbursement of the Old Age Pension (JHT) funds of the BPJS Employment is not entirely subject to Income Tax (PPh).

The government provides a final tax rate of 0 percent for participants who cash out JHT benefits when entering retirement with a value of up to IDR 50 million.

This provision has been regulated for a long time through the Minister of Finance Regulation (PMK) Number 16 of 2010.

If the JHT balance that is disbursed exceeds Rp. 50 million, then only the difference above the limit is subject to Final Income Tax at 5 percent.

This provision applies on the condition that all disbursement processes are completed no later than within two calendar years from the first disbursement made during retirement.

Head of the Communication and Information Services Bureau of the Ministry of Finance, Deni Surjantoro, said the government implemented a taxation policy that provided special treatment to JHT participants through a lighter final tax rate.

"Through a fair taxation policy, the government provides special treatment in the form of a Final Tariff incentive that is much lighter for workers who disburse the JHT fund," he said in a written statement, Tuesday, June 30.

Based on data from the BPJS Employment, it is shown that the majority of participants enjoy the facility.

Meanwhile, throughout the period from January to May 2026, as many as 95.45 percent of participants who cashed out JHT had a balance below Rp50 million so that they obtained a Final Tax rate of 0 percent, and the number reached 1,645,469 claims out of a total of 1,723,910 claims that have been paid.

Meanwhile, for the disbursement of JHT carried out by participants while still in the status of active workers, the imposition of the tax follows the provisions of the general tariff of Personal Income Tax.

This policy is implemented as an effort to encourage participants not to make early withdrawals so that the benefits of JHT received when they retire can be more optimal.

He also emphasized that the JHT fee paid every month while the worker is still active has never been subject to Income Tax.

According to him, the scheme is part of the government's efforts to present a fairer, simpler tax system, and provide convenience for workers in preparing for retirement.

"For more information, the public can contact the Directorate General of Taxes," he said.