Home Blog COVID-19 in Indonesia: Relaxation of BPJS of Employment Contributions Human Resource | Payroll COVID-19 in Indonesia: Relaxation of BPJS of Employment Contributions InCorp Editorial Team 18 September 2020 4 minutes reading time Table of Contents BPJS of Employment in Indonesia Relaxation in the Time of COVID-19 Consult with Cekindo 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. BPJS of Employment in Indonesia Relaxation in the Time of COVID-19 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: Very low risk: 0.24% to 0.0024% Low risk: 0.54% to 0.0054% Moderate risk: 0.89% to 0.0089% High risk: 1.27% to 0.0127% Very high risk: 1.74% to 0.0174% 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 Contract value up to IDR 100,000,000: from 0.2% to 0.0020% Contract value above IDR 100,000,000 up to IDR 500,000,000: from 0.17% to 0.0017% Contract value above IDR 500,000,000 up to IDR 1,000,000,000: from 0.13% to 0.0013% Contract value above IDR 1,000,000,000 up to IDR 5,000,000,000: from 0.11% to 0.0011% Contract value above IDR 5,000,000,000: from 0.09% to 0.0009% 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 Contract value up to IDR 100,000,000: from 0.03% to 0.0003% Contract value above IDR 100,000,000 up to IDR 500,000,000: from 0.02% to 0.0002% Contract value above IDR 500,000,000 up to IDR 1,000,000,000: from 0.02% to 0.0002% Contract value above IDR 1,000,000,000 up to IDR 5,000,000,000: from 0.01% to 0.0001% Contract value above IDR 5,000,000,000: from 0.01% to 0.0001% 4. Other adjustments that are covered Employees and employers will get the relief if the July contributions have been settled Employees that registered just after July 2020 must pay for 2-month contribution based on the normal rate Employees and non-employees will get the relief starting from the third month of the participation in the BPJS social security program There is no need to submit an application as the relief is provided directly by the BPJS If employers, employees and non-employees have paid for the JKK and JKM contributions in August 2020 or the following month and an excess is found, the excess will be compensated for the following month’s contribution Postponement of JP contribution for employers for the stated period: from 2% to 0.02% Postponement of JP contribution for employees for the stated period: from 1% to 0.01% Companies that want to postpone the payment for JP contribution need to submit an application to the BPJS office Fine for late payment: from 2% to 0.50% To read the complete regulation, download from our e-library. Consult with Cekindo 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. As a leading consulting and outsourcing company in Indonesia, Cekindo has a team of experts that always update themselves with the newest implemented regulations to ensure 100% compliance at all times. We can provide you with the guidance you need and assist you in your payroll and taxation, among others. Let us take that burden away from your shoulder, outsource your payroll to us now. To discuss more, get in touch with us via the form below. Read Full Bio Verified by Heldy Narua Senior External Finance Manager at InCorp Indonesia Heldy, with seven years of experience, leads InCorp Indonesia's External Finance team, specializing in reliable Payroll Outsourcing and Finance Management solutions. She has an Accounting and Business Administration degree from Sampoerna University and Oregon State University. She is certified with Brevet AB, highlighting her technical expertise and commitment to client success. Frequently Asked Questions What are the obligations related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field. What are the standard regulations regarding employment in Indonesia? The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance How does the HR outsourcing mechanism work? As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee. How does InCorp’s recruitment outsourcing mechanism work? As a professional executive search agent, InCorp helps promote job vacancies, screen, and shortlist applicants, conduct pre-interviews, and arrange final interviews with applicants. This can also be topped up with an employee background check. Get in touch with us. Lead Form Newsletter Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Human Resource 5 Myths about PEO in Indonesia You Must Not Believe Read more How are Payroll and Company Culture in Indonesia Related ? Read more Latest Regulation: Employment of Foreign Workers in Indonesia Read more