||INDONESIA Pension Program Update 2022
Greetings from i-Admin.
Indonesia government has issued an update related to the amount of benefits and wage regulation for BPJS pension 2022.
Please see below for updated details of Jaminan Pensiun (Pension Guarantee):
- Minimum Pension Benefits is IDR.363,300.00 per month and maximum of IDR.4,357,900.00 per month.
- The maximum wage as the basis for calculating the pension contributions amounted IDR.9,077,600,00
- This update on pension contribution shall take effect as of 1 March 2022.
- Pension Guarantee Program contribution rate:
||Borne by employer
||Borne by employees
|Before 1 March 2022
||2% up to max. IDR 175,092
||1% up to max. IDR 87,546
|1 March 2022 onwards
||2% up to max. IDR 181,552
||1% up to max. IDR 90,776
- The above rates are applied to wages up to a maximum of IDR 8,754,600.00 per month (before 1 March 2022) and IDR 9,077,600.00 per month (1 March 2022 onwards).
- The wages will adjust every year using a factor of 1 (one) plus previous year annual growth rate of gross domestic product.
- Payment due for BPJS Ketenagakerjaan are applied for all program (JK, JKK, JHT, JP) by 15th of the following month.
- Delays in payment dues by the Employer imposed a fine of 2% (two percent) for each month of delay, calculated from the contribution that should be paid by the Employer.
Secondly, starting January 1, 2022, the retirement age will change to 58 years from 57 years previously.
For any further clarification, please feel free to contact us.