Need help registering and managing BPJS for your employees?
The Social Security Administration Agency (BPJS) is a mandatory program in Indonesia that protects employees’ health, employment, and financial security. Businesses must register employees for BPJS Kesehatan (health insurance) and BPJS Ketenagakerjaan (employment insurance) to comply with labor regulations and avoid legal consequences.
Failing to comply with BPJS regulations can lead to fines, business license restrictions, and even criminal sanctions. Therefore, understanding BPJS obligations and ensuring proper registration and contribution payments are essential for employers.
Key Takeaways
- BPJS Kesehatan & BPJS Ketenagakerjaan are mandatory for all businesses in Indonesia.
- Employers must register employees and submit contributions on time.
- Non-compliance leads to serious penalties, including fines and business restrictions.
BPJS Programs & Benefits
BPJS consists of two main programs:
- BPJS Kesehatan (Health Insurance)
- Covers medical expenses, hospitalization, and preventive healthcare.
- Required for all employees in Indonesia, including foreign workers with contracts of at least six months.
- BPJS Ketenagakerjaan (Employment Insurance)
Includes several types of protection:
| Insurance Type | Employer Contribution | Employee Contribution | Key Benefits |
| Work Accident Insurance | 0.24% – 1.74% (based on risk level) | – | Covers medical treatment, cash benefits, and return-to-work support. |
| Death Insurance | 0.3% | – | Provides financial compensation, funeral costs, and children’s education scholarships. |
| Old Age Insurance (JHT) | 3.7% | 2% | Lump sum cash benefit upon retirement. |
| Pension Insurance (JP) | 2% | 1% | Monthly pension benefits upon retirement or disability. |
| Unemployment Insurance (JKP) | 0.22% (covered by government) | – | Cash benefits, job training, and job search assistance. |
Employers must calculate and deduct contributions from employees’ salaries while ensuring timely payments to BPJS.
BPJS Registration & Contribution Requirements
Who Must Register?
- All businesses operating in Indonesia must register their employees for both BPJS Kesehatan and BPJS Ketenagakerjaan.
- Foreign workers with contracts of six months or more are also required to participate.
Employer Contribution Breakdown
- BPJS Kesehatan: 5% of salary (4% employer, 1% employee).
- BPJS Ketenagakerjaan: 5.7% of salary (varies based on insurance type).
Businesses must submit BPJS payments on time to avoid penalties and operational disruptions.
Sanctions for Non-Compliance
Businesses that fail to register employees or miss BPJS payments may face serious penalties, including:
- Administrative Sanctions:
- Written Warnings
- Fines for late or missing payments
- Delays in obtaining or renewing business licenses
- Temporary business suspension
- Criminal Sanctions:
- Companies attempting to avoid BPJS obligations may face criminal charges under Law No. 6 of 2023.
- Possible fines or imprisonment for severe violations.
- Obligation to Pay Arrears:
- Businesses must pay overdue BPJS contributions along with accumulated fines.
Ignoring BPJS compliance can put a company’s legal standing and workforce stability at risk.
How Permitindo Can Help Businesses Stay Compliant
BPJS registration, contribution management, and compliance can be complex for businesses—especially with frequent regulatory changes. Permitindo’s Payroll Services help businesses:
- Register employees with BPJS Kesehatan & BPJS Ketenagakerjaan seamlessly.
- Ensure accurate BPJS contribution calculations based on employee wages.
- Manage timely BPJS payments to prevent penalties.
- Handle payroll administration, including tax deductions and compliance.
By partnering with Permitindo, businesses can stay compliant, avoid risks, and streamline employee benefits management.
Conclusion
BPJS is a critical part of employee protection in Indonesia. Employers are legally required to register employees, contribute to BPJS funds, and comply with reporting obligations. Non-compliance can result in fines, business restrictions, or even legal consequences.
With the right payroll and compliance strategy, businesses can avoid legal risks and ensure employee welfare. Permitindo’s Payroll Services provide the expert guidance needed to handle BPJS obligations efficiently.