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Govt sets 3% premiums in pension scheme
President Joko âJokowiâ Widodo has issued a government regulation setting pension premiums at 3 percent, according to the president director of the Workersâ Social Security Management Agency (BPJS TK), Elvyn G Masassya
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resident Joko 'Jokowi' Widodo has issued a government regulation setting pension premiums at 3 percent, according to the president director of the Workers' Social Security Management Agency (BPJS TK), Elvyn G Masassya.
According to the regulation, of the 3 percent premium, 2 percent will be covered by employers, while workers will contribute 1 percent of their monthly wages.
'Within the next three years, the pension scheme's premiums will be revised and increased to 8 percent,' Elvyn said in a press conference after President Joko 'Jokowi' Widodo launched the four occupational social security programs at the Turtle Bay in Cilacap, Central Java, on Tuesday.
Employers had proposed 1.5 percent premiums, while the Finance Ministry had proposed 3 percent.
Elvyn said the level would not affect companies' financial situations within the next three years.
'This will not affect workers because the pension program will provide a fixed benefit obtained after paying the premium for 15 years,' he said.
The four occupational social security programs would, he added, be effective as of July 1. Civil servants, police officers and soldiers will gradually join the four programs, which are obligatory for salaried workers in the formal sector. (rms)(++++)
