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Unemployment benefits are here, but workers are not happy
The new unemployment benefits (JKP) scheme has been billed by the government as an alternative to early pension payout, but workers say it is an inadequate safety net in times of need.
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A protester holds a sign that reads: “Overcome the virus, withdraw the omnibus [law]” outside the House of Representatives in Senayan, Central Jakarta, on Nov. 12, 2020. (JP/Seto Wardhana)
T
he new unemployment benefits (JKP) scheme has been billed by the government as an alternative to cashing out old-age benefits (JHT), but workers say it is an inadequate safety net in times of need.
The long-waited JKP took effect earlier this month, shortly before the early withdrawal of JHT funds is set to be banned in May.
Manpower Ministry Ida Fauziyah said on Tuesday that the JKP could accommodate workers who were in need of money after being laid off by their company, so that they no longer needed to use their accrued JHT funds, which they would be able to access after turning 56.
Under the prevailing rules, which are about to change, workers who resign or have been laid off can pull out JHT benefits after a one-month waiting period, regardless of their age.
“The JKP program is designed specially to cover risks from being laid off. Starting this February, workers can enjoy the benefits,” Ida said through the ministry’s online broadcast.
Read also: Workers protest restrictions on pension cash-out
The JKP was introduced under Government Regulation No. 35/2021, which is based on the 2020 Job Creation Law. It has been welcomed by businesses, as its introduction went hand-in-hand with a reduction in the amount of compensation employers must pay laid-off workers.
