Provident Fund Benefit
The Social Security Program is the basic protection for
workers who aim to ensure the security and assurance of
social and economic risks. The program is the guarantor
of the current means of receiving income for workers and
their families, resulting from the occurrence of social risks
in financing, affordable by employers and employees.
Socio-economic risks addressed by this program are
limited during the times of accident, illness, pregnancy,
maternity, disability, old age and death, which result
in reduced or cut off labour income and / or require
medical care of the Implementation of Social Security.
Old Age Security Program
(JHT, Jaminan Hari Tua)
The Old Age Security Program is intended as a substitute
for labour income due to disconnection of death, disability
or old age. The Old Age Security Program provides assurance
that revenue receipts are paid at the time an employee
reaches the age of 55 or has fulfilled certain requirements.
Old Age Security Program contributions are 3.7% for
company contribution while 2% for charged labour.
Health Care Benefit
(JPK, Jaminan Pemeliharaan Kesehatan)
Death benefit
(JK, Jaminan Kematian)
JPK is one of the Social Security programs that helps
employees and their families cope with health problems.
Ranging from prevention, care at health clinics, hospitals
and treatments, all provided effectively and efficiently. Any
labour that has followed the JPK program will be given a KPK
(Health Care Card) as proof of identity to get health care.
Death Benefit is for the heirs of the Social Security program
participants who died for a reason other than work accidents.
Death collateral is required for alleviating the burden of
families for funeral expenses and compensation in the form
of money. Employers are obliged to bear the tuition guarantee
program for 0.3% of deaths where a guarantee of death
was given as IDR 21 million, consisting of IDR 14.200.000
in compensation for the death, compensation for funeral
costs at IDR 2 million and further periodic compensation.
JPK dues paid by the company are:
• Three percent (3%) of wage labour (max
USD 1 million) for single workers
• Six percent (6%) of wage labour (max
USD 1 million) for family labour
• Basic calculation of the percentage contribution from wages as
high as Rp 1.000.000,-
Work-Related Accident Benefit
(JKK, Jaminan Kecelakaan Kerja)
Accident, including diseases caused by work is a risk that
must be faced by most workers. To overcome the loss of
part, or all, income caused by the existence of social risks
such as death or disability due to accident, the guarantee of
work accidents is needed. Health and safety of workers is the
responsibility of employers, so employers have an obligation to
pay a guarantee fee, which ranges from workplace accidents,
0.24% - 1.74% depending on the type of business.
As mentioned earlier, there are frequent changes in the
labour laws and regulation and because of this, workers’
compensations are affected. Furthermore, these changes present
challenges in keeping the workers’ compensation up to date.
Payroll information systems are a great tool in keeping up
with the changes in the workers compensation as it is
user-friendly, efficient and provides assurance on compliance
to the ever changing labour laws and regulations.
Employment Accident (JKK) provides compensation and
rehabilitation for worker s injured at the times between when
they left to go to work until arriving back at home, or if
an employee suffers from illness due to the employment.
Contributions for JKK are fully paid by the company.
Accolade
OCTOBER 2013
13