Compensation and Benefits of Indonesian Employees – Social Security for Work Accidents & Pensions (BPJS Ketenagakerjaan)
In Indonesia, the BPJS Ketenagakerjaan (Workers’ Social Security) program covers four key areas:
- Jaminan Kecelakaan Kerja (JKK) – Work Accident Insurance
- Jaminan Kematian (JKM) – Death Insurance
- Jaminan Hari Tua (JHT) – Old Age Security
- Jaminan Pensiun (JP) – Pension Security
The combined contribution rate for these programs is 9.24% of an employee’s monthly salary. Here’s a detailed breakdown:
📊 Contribution Breakdown
| Program | Employer Contribution | Employee Contribution | Total Contribution |
| JKK | 0.24% – 1.74%* | 0% | 0.24% – 1.74% |
| JKM | 0.30% | 0% | 0.30% |
| JHT | 3.70% | 0% | 5.70% |
| JP | 2% | 0% | 3% |
| Total | 6.94% – 7.64% | 0% | 9.24% – 10.64% |
The JKK contribution varies based on the risk level of the work environment:
- Very Low Risk: 0.24%
- Low Risk: 0.54%
- Medium Risk: 0.89%
- High Risk: 1.27%
- Very High Risk: 1.74%
💰 Maximum Salary Cap for JP Contributions
As of March 1, 2025, the maximum monthly salary used to calculate Jaminan Pensiun (JP) contributions is IDR 10,547,400. This means that for employees earning above this amount, JP contributions are calculated based on this ceiling:
- Employer Contribution: 2% of IDR 10,547,400 = IDR 210,948
- Employee Contribution: 1% of IDR 10,547,400 = IDR 105,474
- Total JP Contribution: IDR 316,422
For employees earning below this ceiling, contributions are calculated based on their actual monthly salary.
📌 Important Notes
- Mandatory Participation: All formal sector employees in Indonesia are required to participate in BPJS Ketenagakerjaan.
- Employer Responsibility: Employers are responsible for registering their employees and ensuring timely payment of contributions.
- Annual Adjustments: The salary caps for JP contributions are adjusted annually based on Indonesia’s GDP growth rate, as per Government Regulation No. 45 of 2015.