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BPJS Ketenagakerjaan needs government help to pay compensation to laid-off workers
Under the proposed social security scheme, BPJS Ketenagakerjaan would provide cash benefits for six months, skills training and job access to laid-off workers.
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Workers from the Confederation of Indonesian Trade Unions protest against the controversial omnibus bill on job creation in front of the House of Representatives compound in Jakarta on Feb. 12., 2020. (JP/Dhoni Setiawan)
T
he Workers Social Security Agency (BPJS Ketenagakerjaan) needs financial help from the government to pay for the social security schemes of laid-off workers (JKP), one of workers’ benefits proposed under the omnibus bill on job creation. the agency's senior executive has said.
BPJS Ketenagakerjaan's strategic planning and information technology director, Sumarjono, said in Jakarta on Monday the agency proposed that workers and employers share the responsibility for paying premiums for the compensation scheme for laid-off workers as stipulated in the proposed bill, which is currently being deliberated by the House of Representatives.
“All social security concepts are based on premium payments. How could we pay the benefits without them?” Sumarjono told The Jakarta Post on the sidelines of the National Conference on Workers Social Security that was organized by the International Labor Organization (ILO) on Monday.
Read also: Key points of labor reform in omnibus bill on job creation: What we know so far
However, during the first year of the program, the agency would need financial assistance from the government to pay the compensation because the income from premiums would not be enough to cover the required funds.
“In Malaysia, the government pays claimant benefits during the first year of the program, even though they could only provide three months’ worth of benefits in the initial period of the program. This is great for the JKP if it has enough money to pay it all,” he said.
Questions regarding funding for JKP have arisen as the Manpower Ministry repeatedly claims the program would not generate additional burdens for workers and employers.
