Government Regulation Related to BPJS Ketenagakerjaan

According to article 86 Indonesian Law Number 13 the Year 2003 concerning Manpower, each labor has a right to get the protection of safety and healthy during their work. The right to get the protection is applied in giving insurance through The Social Insurance Administration Organization. The Social Insurance Administration in Indonesia is Badan Penyelenggara Jaminan Sosial or BPJS. There are two types of BPJS such as BPJS Kesehatan and BPJS Ketenagakerjaan. Herewith the explanation about The Manpower Insurance or BPJS Ketenagakerjaan.

Companies, or employers, are required to include all their employees in this government program. This is regulated in Article 14 of Law Number 24 of 2011 concerning the Social Security Administering Body, “Everyone, including foreigners who work for a minimum of 6 (six) months in Indonesia, is obliged to become a participant in the social security program (health and employment).”

In accordance with article 15 paragraph 1 “Employers must gradually register themselves and their workers as participants with BPJS (health and employment), in accordance with the social security program they are participating in.”

The Manpower Insurance or BPJS Ketenagakerjaan

The Manpower Insurance or BPJS Ketenagakerjaan is an insurance that provides programs with the aim of protecting all workers in Indonesia. Whether it is formal workers or informal workers. The programs and benefits of BPJS Ketenagakerjaan include:

1. Workplace Accident Insurance.
2. Retirement Insurance.
3. Provident Fund Insurance.
4. Death Insurance.
5. Non-Wage Recipient Program.
6. Program for the Construction Services Sector.

Sanctions if The Company Does Not Follow BPJS Ketenagakerjaan

The sanctions if companies other than state administrators do not carry out their obligations to register their workers as Participants with BPJS are administrative sanctions in accordance with Article 17 Paragraph (1) Law Number 24 of 2011 concerning BPJS and Article 5 Paragraph (1) of Government Regulation Number 86 of 2013.

The administrative sanctions can be in the form of:

1. Written warning, carried out by BPJS.
2. and/or fines shall be carried out by BPJS.
3. Does not receive certain public services. This is done by the Government or local governments at the request of BPJS.

Disclaimer:

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.