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What is BPJS Ketenagakerjaan? (Indonesia)

Employment Social Security Administration. Indonesia. Payroll. Employment Benefits.

Nicholas avatar
Written by Nicholas
Updated over a year ago

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:

  1. Mandatory Participation

    • Both Indonesian citizens and expatriates working in Indonesia are required to participate in the social security programs managed by BPJS Ketenagakerjaan.

  2. 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.

  3. 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.

  4. 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.

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