In accordance with a new government regulation namely PP 49 of 2020 that has been signed by President Joko Widodo on 31 August 2020, the contribution for BPJS of Employment in Indonesia has been relaxed. The purpose of this relaxation is to help ease the burden of the participants who have to deal and cope with the COVID-19 crisis in Indonesia.
This article discusses some important points that you need to know about the relaxation of BPJS of Employment contribution that is planned to be implemented from August 2020 until January 2021.
The following adjustments have been made in accordance with PP 49 of 2020:
1. 99% discount for Jaminan Kecelakaan Kerja (JKK) and Jaminan Kematian (JKM) contributions
The government has granted 99% discount for the above-mentioned contributions every month, with the scheme as follows:
2. JKK for construction companies in cases where the basic salary is unknown. The calculation for JKK, therefore, is based on the contract value within the term
3. JKM for construction companies in cases where the basic salary is unknown. The calculation for JKM, therefore, is based on the contract value within the term
4. Other adjustments that are covered
To read the complete regulation, download from our e-library.
In the difficult time of COVID-19 in Indonesia, regulations may change from time to time, particularly regulations that are related to payroll, taxation and visas. It may be challenging and overwhelming to keep updated with the latest regulations.
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