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Jakarta to become barometer for occupational social security
The Workersâ Social Security Management Agency (BPJS TK) has decided to use Jakarta as a barometer in implementing the governmentâs four social security programs for all people
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T
he Workers' Social Security Management Agency (BPJS TK) has decided to use Jakarta as a barometer in implementing the government's four social security programs for all people.
Director of BPS TK program membership, Junaidi, said that Jakarta was chosen as a barometer not only because it was Indonesia's capital city but because it had contributed almost 44 percent of the agency's assets and because a majority of employers and their workers were concentrated in Jakarta and surrounding areas.
'Although the four programs will be launched on July 1, the BPJS TK has made the capital city a pilot project in implementing the four occupational social security programs under the newly transformed agency,' he told The Jakarta Post in Jakarta on Tuesday.
He explained that in accordance with the 2011 Social Security Provider Law, the BPJS TK, transformed from state-owned PT Jamsostek, would provide the occupational accident benefit (JKK), old-age risk benefit (JHT), pension benefit and death benefit schemes for all people, including workers, civil servants, police and soldiers nationwide.
Workers are charged between 0.24 percent and 1.74 percent of their monthly salaries to participate in the JKK program and must pay 0.3 percent of their monthly salaries for the death benefit scheme, but their employers cover all premiums. Meanwhile, workers pay 2 percent of their monthly salaries as a premium while their employers contribute 3.7 percent for the JHT program. Finally, workers will pay 3 percent of their monthly salaries while their employers contribute 5 percent for the pension benefit scheme.
'The ceiling for the pension program will be limited to Rp 10 million at the maximum. Since the BPJS TK is ordered by law to provide basic benefits, workers with a monthly salary above Rp 10 million are asked to register with commercial insurance or private financial institution pension funds [DPLK],' said Junaidi.(+++)
