Garment: Social Security

ARRAGEMENT ON BPJS KETENAGAKERJAAN FOR GARMENT LABOURER

1. What does BPJS Ketenagakerjaan mean?
2. Who are allowed to have membership of BPJS Ketenagakerjaan?
3. When does BPJS Ketenagakerjaan come into full force?
4. In what ways can Laborers can have BPJS Ketenagakerjaan membership?
5. Do garment laborers that have had Pension and Social Security (Jamsostek) membership need to be reregistered for BPJS?
6. If a garment laborer moves to another garment company or if his/her company moves to another location, will it have any impact on his/her membership status?

TYPES OF SERVICES PROVIDED BY BPJS KETENAGAKERJAAN

1. What kinds of services provided by BPJS Ketenagakerjaan?
2. What does Old Age Protection (Jaminan Hari Tua/JHT) mean?
3. What does Pension Protection mean?
4. What does occupational accident protection (JKK) mean?
5. What are the benefits of occupational accident protection (JKK)?
6. What does death protection (JKM) mean?
7. What kinds of benefits received and how much the premium of JKM?
8. What does Job Security (JKP) mean?
9. What are the aims of JKP?
10. What kinds of benefits obtained from JKP Program for garment laborers?
11. What should we do if our garment employer does not register its workers at BPJS Ketenagakerjaan?

ARRAGEMENT ON BPJS KETENAGAKERJAAN FOR GARMENT LABOURER

WHAT DOES BPJS KETENAGAKERJAAN MEAN?

HEALTH SOCIAL SECURITY AGENCY or widely known as BPJS is a State Agency specifically provides health protection and employment security for citizens, Civil Servant, and private employees. This Program started being implemented in 2014 by virtue of Law Number 24 of 2011 on HEALTH SOCIAL SECURITY AGENCY (UU 24/2011). 

BPJS Ketenagakerjaan is mandated specifically to give protection to all Indonesian Workers both in formal sectors and informal sectors, as well as for foreigners working in Indonesia with working period at least 6 months. The Protection provided is in the form of: Occupational Accident protection (JKK): Death Protection (JK), Old Age Protection (JHT), Pension Protection (JP) dan Employment Security (JKP).

WHO ARE ALLOWED TO HAVE MEMBERSHIP OF BPJS KETENAGAKERJAAN ?

Everyone is allowed to have membership of BPJS Ketenagakerjaan. For companies employing more than 10 people, membership of BPJS Ketenagakerjaan is mandatory. Meaning, all companies, which have at a minimum of 10 employees, are obliged to register their employees along with their family members in order to have membership of BPJS Ketenagakerjaan.

WHEN DOES BPJS KETENAGAKERJAAN COME INTO FULL FORCE?

BPJS Ketenagakerjaan came into force as of July 1, 2015. Effective as of such date, BPJS Ketenagakerjaan took over all services that was previously provided by Jamsostek (such as program Old Age Protection, Death Protection, Occupational Accident protection Program), Asabri and Taspen (for pension).

In what ways can Laborers can have BPJS Ketenagakerjaan membership?

According to the regulation, membership of BPJS for workers is a must. Meaning that all workers, including garment laborers must have membership of BPJS. All companies are obliged to register their workers as members of BPJS. If a company does not do so, the company may be subject to administration sanctions, such as: written warnings, penalty, and/or not receiving certain public services (article 17 of Law No. 24 of 2011)

Do garment laborers that have had Pension and Social Security (Jamsostek) membership need to be reregistered for BPJS?

Since BPJS is a replacement program of Jamsostek, workers who have become members of Jamsostek do not need to be reregistered in order to be members of BPJS because the membership is assigned automatically. However, BPJS will replace the membership cards step by step without negatively impacting the benefits that may be obtained by the members.

If a garment laborer moves to another garment company or if his/her company moves to another location, will it have any impact on his/her membership status?

Membership of BPJS Ketenagakerjaan is only valid once for one person. Meaning that if a worker who already has membership of BPJS Ketenagakerjaan moves to another company, then his/her membership will automatically be transferred to his/her new company, provided that the new company registers the worker. If it doesn’t, the worker will remain being a member of BPJS, but he is deemed inactive because he does not pay the membership fees.

TYPES OF SERVICES PROVIDED BY BPJS KETENAGAKERJAAN

What kinds of services provided by BPJS Ketenagakerjaan?

A number of provisions of Law No. 24 of 2011 on Health Social Security Agency (BPJS) has been amended by Job Creation Law No. 11 of 2020 on Employment Cluster. In addition, the amendment is contained in the article 6 specifying that BPJS Ketenagakerjaan covers Old Age Protection, Pension Protection, Occupational Accident protection, Death protection and adding Employment Security (JKP).

WHAT DOES OLD AGE PROTECTION MEAN?

Old Age Protection (JHT), according to Government Regulation Number 46 of 2016 on Old Age Protection Program, means a benefit in the form of cash  paid out in a lump sum when a member reaches retirement age, dies, or suffers total permanent disability.

WHAT DOES PENSION PROTECTION MEAN?

Pursuant to Government Regulation Number 45 of 2015 on Pension Protection Program. Pension Protection (JP) means social security aiming at ensuring the members and/or their heirs have adequate lives by giving them income after loosing or having their income decrease due to retirement age, death, or total permanent disability.  If Old Age Protection is paid out in a lump-sum, Pension Protection may be in the form of cash paid out monthly and/or in a lump sum if the member reaches retirement age, or suffers total permanent disability, dies.   

WHAT DOES OCCUPATIONAL ACCIDENT PROTECTION (JKK) MEAN?

According to Government Regulation Number 44 of 2015 on Occupational Accident Protection and Death Protection, Occupational Accident Protection is a benefit in the form of cash and/or health services given when a member has an occupational accident or an illness caused by his/her working environment. 

What are the benefits of occupational accident protection (JKK)?

Occupational Accident Protection (JKK) provides compensation and rehabilitation for workers having an accident during the time from they leave for work until they come back to home or suffer from illness due to their employment.

The benefits may be in the form of:

1. Health services (care and treatment), starting from basic and long examination, the first and advanced stage of care, intensive care (HCU, ICCU, ICU) to special services, medical devices and implants as well as medical rehabilitation, etc.

2. Compensation in the form of money, covering:

a. Reimbursement of the transportation fees of the member having an accident at work/suffering from an illness due to his/her employment to any hospital and/or his/her house, including first aid costs of the accident. 

b. Compensation during the time he/she is unable to work (STMB);

c. Disability Compensation;

d. Death Compensation and funeral costs if a worker dies due to an occupational accident.

3. Return to Work Program in the form of assistance to any member who experiences occupational accident and an illness due to working leading to potential disability, this program starts from the member undergone treatment at an hospital until he/she is able to return to work.

4. Promotive and Preventive activities to support occupational safety and health, so that the number of occupational accidents and illness due to working may be decreased. 

5. Rehabilitation in the form of orthesis and/or prothesis for members who loss their limbs or whose limbs are unable to function due to Occupational Accidents. 

6. Scholarship for the children of members who die or suffer from total permanent disability due to occupational accidents amounting to IDR 12,000,000.- (twelve million rupiah) per each member.

WHAT DOES DEATH PROTECTION MEAN (JKM)?

Death Protection (JKM), according to Government Regulation Number 44 of 2015, means a benefit in the form of cash granted to Heirs when a testator passes away without the occurrence of occupational accident.

WHAT KINDS OF BENEFITS RECEIVED AND HOW MUCH THE PREMIUM OF JKM?

JKM provides a benefit in the form of cash granted to heirs when a testator passes away without the occurrence of occupational accident.

The benefits may be in the form of:

1. Periodic Compensation IDR 12 million
2. Death Compensation IDR 20 million
3. Scholarships for 2 children starting from kindergarten to College for an active member died, with a minimum premium of 3 years, amounting up to IDR 174 Juta. 
4. Total benefits received are IDR 42 million plus scholarship up to IDR 174 million.

JKM Program’s premiums are as follows: 

0.3% (of reported salary) for Permanent Workers, and Non-permanent workers is IDR 6,800.-.

What does Job Security (JKP) mean?

Law Number 11 of 2020 on Job Creation amends the provision of article 18 of Law Number 40 of 2004 on National Social Security Systems, by adding another type of social security program, which is job Security (JKP). JKP is provided for workers/laborers experiencing Termination Of Employment (PHK). JKP is carried out by BPJS Ketenagakerjaan and Central Government.

What are the aims of JKP?

JKP aims to maintain the degree of adequate lives when workers/laborers loss their jobs.

What kinds of benefits obtained from JKP Program for garment laborers?

The benefits provided by JKP are in the form of: cash, access of job market information, and training. The Cash benefit is given up to 6 (six) times of monthly salary and given to a member after certain membership period and as specified in Government Regulation. 

What should we do if our garment employer does not register its workers at BPJS Ketenagakerjaan?

If a garment company violates the obligation to register its workers at BPJS ketenagakerjaan, then you may take the following actions:

1. Workers may negotiate the issue with the company.
2. If the negotiation fails, the workers may move forward to mediation process by involving mediators from local employment agency.
3. Or workers/labor union may directly report the violation to Employment Supervision Division of the Provincial/ Municipal/ District Authority.
4. Or report the violation directly to BPJS Ketenagakerjaan.