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Govt says all workers must pay their own premiums

Defying a ruling by the Constitutional Court, the government has insisted that all employees joining the national social security programs must pay the premiums themselves, as it is an insurance scheme not a social aid

Ridwan Max Sijabat (The Jakarta Post)
Jakarta
Thu, October 25, 2012

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Govt says all workers must pay their own premiums

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efying a ruling by the Constitutional Court, the government has insisted that all employees joining the national social security programs must pay the premiums themselves, as it is an insurance scheme not a social aid.

The Constitutional Court ruling on Oct. 16 stated that employers had to register their workers on national healthcare and occupational social security programs, and had to pay their premiums.

The court issued the ruling in response to a judicial review filed by a labor union federation against Article 15 of Law No. 24/2011 on social security providers (BPJS), which says that employers must register their workers. The article did not outline details about who should pay the premium.

The government, however, has its own interpretation of the ruling.

Deputy Health Minister Ali Ghufron Mukti and Manpower and Transmigration Ministry’s labor supervision director general Muji Handoyo said the ruling had nothing to do with the issue of who should pay the premium.

“The government and state insurance firm PT Askes will be ready by Jan. 1, 2014 to gradually implement the national healthcare program for all. All participants will be required to pay their [own] contribution to the program. Workers and their employers will share their contribution, while the premiums of the poor and the jobless will be covered by the government,” he said in a seminar on progress in the ongoing implementation of social security programs on Wednesday.

Muji questioned those who wrongly interpreted the ruling, saying the healthcare and occupational social security programs are mandatory.

Workers and labor unions recently went on strike to reject the government’s plan to deduct 5 percent of their monthly salaries to pay for the five mandatory social security programs.

Some informal workers have registered with the social security programs run by state-owned PT Jamsostek.

The program requires workers to pay 3.7 percent of their monthly wage toward the old-age risk benefit program while premiums for the healthcare, occupational accident and death benefit schemes would be covered by their employers.

Chairman of the National Social Security Committee (DJSN), Chazali Situmorang, called on the government to immediately issue all necessary regulations relating to the five mandatory programs — to address the confusion among the public and allow Askes and Jamsostek to make the necessary preparations for the implementation of the programs.

The deputy health minister added that Astek had already made preparations to undertake the national healthcare program because it had to develop the necessary infrastructure, such as class III beds in all hospitals, identity cards for all, standard medical equipment and specialists.

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