President Joko Widodo has issued an official regulation regarding the implementation of the Job Loss Insurance (JKP) program for workers/laborers who are victims of termination of employment (PHK).
The provision in question is the latest program in BPJS Manpower, namely the Job Loss Insurance (JKP) which has been stated and ratified in Government Regulation (GR) Number 37 of 2021 concerning the Implementation of the Job Loss Guarantee Program. This rule is a derivative of Law (UU) Number 11 of 2020 concerning Job Creation.
- What are the Terms of Membership JKP?
- How to register JKP?
- How much is the JKP Contribution?
- How to Pay the JKP Contribution?
- What are the Requirements for Receiving JKP Benefits?
- Are All Types Reasons of Layoffs to Receive Benefits JKP?
- What are the benefits of JKP?
- What if the Employer Does Not Register Workers/Labourers to the JKP Program, but does layoffs?
- What Happens If Delinquent Employers Contribution JKP Until Consecutive 3 months?
- How long does it take for JKP to be disbursed since the worker/labourer is laid off?
What are the Terms of Membership JKP?
The participation of workers/ laborers in the JKP program consists of those who have been enrolled and those who have just been registered. The conditions are that the worker/laborer is an Indonesian citizen (WNI), has not reached the age of 54 at the time of registration, and has a working relationship with the employers.
As an additional requirement, workers/laborers in large and medium-sized businesses must also take part in the JKN (National Health Insurance), JKK (Occupational Accident Insurance), JHT (Old Age Insurance), JP (Pension Guarantee) and JKM (Death Guarantee) programs from BPJS Manpower. Meanwhile, workers/laborers in micro and small businesses should at least participate in the JKN, JKK, JHT, and JKM programs. With the stipulation that these workers/laborers in large and medium, micro and small businesses are workers who receive Wages in business entities.
How to register JKP?
Workers/laborers who have participated in various insurance programs from BPJS Manpower will automatically become participants in the JKP program once GR 37/2021 is promulgated and takes effect (2 February 2021). BPJS Manpower verifies and validates the requirements and participation of Workers/Labourers in these various social security programs. BPJS Manpower will provide proof of membership to workers/labor and a certificate of participation to employers.
Meanwhile, companies that have just registered their workers/labourers are required to fill out a registration form no later than 30 days after the workers/laborers start working. The form includes the identification number (NIK), date of birth, date of start and end of the work agreement.
BPJS Manpower will provide a membership number one working day after the registration form is received in full and the first contribution is paid in full. After that, the workers/laborers and employers each receive evidence and certificates of participation.
"Evidence of participation in the JKP program for workers/labor is integrated in one membership card for the social security program at BPJS Manpower," explained Article 7. After being registered as a membership, the worker/labourer chooses one of the companies as the place of work that is registered to the JKP program.
How much is the JKP Contribution?
The JKP program fee must be paid every month at 0.46 percent of the worker/laborer's monthly wage. This 0.46% contribution comes from:
1) Contribution paid by the central government is 0.22% of the worker/laborer's monthly wage.
2) The source of funding for JKP is 0.24% from the recomposition (cross subsidies) of the existing JKK and JKM program contributions and applies to BPJS Manpower. The JKK contribution is recomposed of 0.14 percent and the JKM contribution is 0.10 percent of the monthly wage.
For Workers/Labourers who have been enrolled in the social security program, contribution recomposition is carried out on the JKK and JKM contributions in February 2021. Furthermore, the contribution recomposition is carried out by BPJS Manpower no later than the 17th of the following month (article 10 paragraphs (1) and (2) of the Minister of Manpower 7 /2021). Meanwhile, the recomposition of contributions for Workers/Labourers who have just been registered in the social security program is carried out since the first contributions for the JKK and JKM programs are paid in full by the Employer. The contribution recomposition is carried out by BPJS Manpower no later than the 17th of the following month (Article 11 of the Minister of Manpower 7/2021)
The recomposition of JKK contributions refers to the level of risk which consists of five categories. First, the risk level is very low 0.1 percent of wages. Second, low risk of 0.4 percent. Third, the medium risk is 0.75 percent. Fourth, high risk 1.13 percent. Fifth, very high risk of 1.6 percent of monthly wages. Meanwhile, JKM contributions were recomposed by 0.1 percent to 0.2 percent.
The wages used as the basis for calculating contributions are the final wages of workers/laborers reported by employers to BPJS Manpower and do not exceed the upper limit of wages. The upper limit of wages for the first time is set at IDR 5 million," written on Article 11, paragraph 6 and paragraph 7.
If the wage is above the upper limit, the standard for calculating the wages used remains at the upper limit, which is IDR 5 million. Wages that are calculated consist of basic wages and fixed allowances. However, if the company does not include the calculation of allowances, then only the basic wages will be calculated for contributions.
Later, the amount of contributions and the upper limit of wages will be evaluated periodically every two years by considering national economic conditions and calculating the adequacy of actuarial obligations. Evaluation by the government in the fields of employment, finance, and the National Social Security Council (DJSN), then stipulated in government regulations.
How to Pay the JKP Contribution?
Payments are made to BPJS Manpower based on membership data that is integrated with BPJS Health data. Payments are made in accordance months the repayment of dues.
If the contribution recomposition process is delayed, the central government will not pay the contributions.
What are the Requirements for Receiving JKP Benefits?
Benefits are given to participants who experience layoffs for work relations based on a certain time work agreement (PKWT) or an indefinite work agreement (PKWTT), with several conditions:
1. JKP beneficiaries must be willing to work again. What is meant by "willing to work again" is working as a wage worker or self-employed or self-employed (explanation of article 19 paragraph (2)
2. Especially for PKWT workers, JKP benefits are provided if the Employer Termination of Employment is carried out before the expiration of a certain period of work agreement.
3. Benefits can be taken if the participant has completed the contribution for at least 12 months in 24 months or at least has paid the contribution for six consecutive months before the layoff occurs.
Are All Types Reasons of Layoffs to Receive Benefits JKP?
The benefits of JKP cannot be accepted by workers/laborers if the person concerned resigns himself, is permanently disabled, retires, and dies. Therefore, to prove the reason for the layoff, the conditions for disbursing JKP benefits must be proven by:
1. Proof of receipt of Termination of Employment by the Worker/Labourer and receipt of the Termination of Employment report from the office that carries out government affairs in the regency/city manpower sector.
2. Collective agreements that have been registered with the industrial relations court and a certificate of registration of collective agreements, or
3. Excerpts or decisions of the industrial relations court which have permanent legal force.
What are the benefits of JKP?
JKP benefits given in three forms:
1. Cash for a maximum of six months given every month. Divided into 45 percent of wages for the first three months and 25 percent for the following three months. If the wages received are not in accordance with the actual, so there is a shortage of cash benefit payments, then the employer is obliged to pay the cash benefit shortage to the workers/laborers at once.
2. Benefits in the form of access to labor market information in the form of information and job guidance by inter-employment officers through the employment information system. Job market information is in the form of vacancies, while guidance is in the form of assessments or career counseling.
3. Benefits of job training. Benefits are provided online or offline through job training institutions owned by the government, private sector, or companies that have been verified by the employment information system. Training institutions can cooperate with professional certification bodies for competency tests licensed from the national professional certification bodies. This benefit is implemented by the government in the field of employment.
What if the Employer Does Not Register Workers/Labourers to the JKP Program, but does layoffs?
If the employer does not register the worker/labor to the JKP program but does lay off, the entrepreneur is obliged to fulfill the cash benefit rights according to the calculation of the JKP program at once. Likewise with providing job training benefits.
This rule can be excluded if the entrepreneur is a micro-enterprise. The rights to JKP benefits cannot be transferred, mortgaged, or confiscated. Another rule states that employer who are in arrears for three months in a row and then layoffs occur, then BPJS Manpower is still obliged to pay cash benefits to workers/laborers. When the payment of benefits is complete, the employer is obliged to pay off the arrears of contributions.
What Happens If Delinquent Employers Contribution JKP Until Consecutive 3 months?
If the contribution that should have been paid by the employer has been in arrears for more than three months, then the employer must first pay the cash benefits to the worker/labourer. When all obligations have been paid, the employer can ask for a reimbursement of benefits to BPJS Manpower which is paid no later than three months after the employer has paid off the rights of the worker/laborer.
How long does it take for JKP to be disbursed since the worker/labourer is laid off?
The right to JKP benefits is lost if the worker/labourer does not apply for a benefit claim for 3 (three) months after the dismissal, has found a job, or dies.
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Source:
- Indonesia. Government Regulation Number 37/2021
- Indonesia. Minister of Manpower Regulation No. 7 of 2021 concerning Procedures for Registration of Participants and Implementation of Contribution Recomposition in the Job Loss Insurance Program