The Employment Social Security Administration, known as BPJS Ketenagakerjaan in Indonesia, is a crucial element of the country's social security system, especially regarding payroll and employment benefits.
This agency plays a pivotal role in ensuring social security for Indonesian workers, both in the formal and informal sectors.
Here are key points about BPJS Ketenagakerjaan:
Mandatory Participation
Both Indonesian citizens and expatriates working in Indonesia are required to participate in the social security programs managed by BPJS Ketenagakerjaan.
Scope of Services:
BPJS Ketenagakerjaan offers various social security protections, including work accident insurance, death insurance, old age savings, and pension security, ensuring a comprehensive safety net for employees.
Two Main Agencies:
The BPJS system in Indonesia comprises two main agencies: BPJS Health (BPJS Kesehatan), which manages health security, and BPJS Employment (BPJS Ketenagakerjaan), responsible for employment-related social security.
Importance for Employers:
Companies operating in Indonesia must ensure compliance with the requirements of BPJS Ketenagakerjaan, as it is a fundamental aspect of the country's employment and social security laws.