Hiring in Indonesia? Understanding BPJS, the mandatory social security system, is crucial. It provides healthcare and employment benefits, protecting employees and ensuring legal compliance.
Managing BPJS Indonesia can be complex, but this guide explains the basics and shows how an EOR service can simplify the process.
BPJS, or Badan Penyelenggara Jaminan Sosial, has two core programs: healthcare (BPJS Kesehatan) and employment-related social security (BPJS Ketenagakerjaan). As the foundation of worker protection and business sustainability, it provides valuable benefits for both employees and employers.
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BPJS Kesehatan aims to provide universal access to healthcare for all citizens and eligible residents, including employees in both formal and informal sectors of the economy.
BPJS Kesehatan covers a wide range of medical services, including:
Under the BPJS Kesehatan program, contributions are calculated for both employers and employees as follows:
The contribution rate is capped at a maximum monthly salary of IDR 12 million. If the employee's wage exceeds IDR 12 million, the employer and employee will contribute using the upper limit rate.
To standardize healthcare services for all BPJS Kesehatan members, the government will implement a new system, Kelas Rawat Inap Standar (KRIS), starting in December 2025. This change, mandated by Presidential Regulation No. 59/2024, will replace the current three-tiered class system.
Read more: PKWT and PKWTT: Employment contracts explained
While the updated contribution rates under KRIS have not yet been announced, the existing monthly rates for non-employees and dependents remain in effect until further notice:
BPJS Ketenagakerjaan provides financial protection for employees against risks related to work accidents, death, retirement, and pension. All employers are legally required to register eligible employees in this program.
Below are the key components of BPJS Ketenagakerjaan:
This insurance provides coverage for medical care, rehabilitation, and compensation due to accidents at work or while commuting. JKK contributions are paid by employers ranging from 0.24% to 1.74% of workers' monthly wage based on risk categories, such as:
| Risk Categories | Rate of Monthly Salary | Job Type |
| Low Risk (Class I) | 0.24% | Administrative and clerical jobs |
| Medium-Low Risk (Class II) | 0.54% | Retail and manufacturing with moderate risk |
| Medium Risk (Class III) | 0.89% | Various technical and service jobs |
| Medium-High Risk (Class IV) | 1.24% | Jobs with significant risk factors |
| High Risk (Class V) | 1.74% | Dangerous jobs, high injury risks |
JKM offers financial support to the deceased worker's family when the death is not caused by a work accident or occupational disease. The employer pays all contributions at a rate of 0.3% of their monthly wage.
JHT functions like a retirement savings plan, with benefits based on the contributions accumulated during the working period. JHT contribution is paid at 5.7% of the worker's monthly wage, with details below:
JP is a social protection program that provides regular pension payments post-retirement based on years of service and contributions. This covers contributions amounting to 3% of the worker's salary, with a maximum wage limit of IDR 10.547.400 (as of 2025). Contribution details are as follows:
Read more:
Implementing BPJS Indonesia can be challenging due to regulations and administrative tasks. An Employer of Record (EOR) simplifies this process so you can focus on business growth.
EORs handle the calculation, reporting, and payment of BPJS Indonesia contributions, preventing errors and penalties.
They stay updated on regulatory changes and manage all reporting, keeping your business compliant effortlessly.
EORs ensure proper BPJS enrollment for expatriates, avoiding legal issues and ensuring fair treatment.
By managing paperwork and system updates, EORs save time and lighten your HR team's workload.
They educate employees on their BPJS benefits, enhancing transparency and satisfaction.
Partnering with an EOR helps you meet BPJS Indonesia obligations, reduce risks, and streamline HR operations with ease.
Managing BPJS Indonesia can be a complex and time-consuming process. As your trusted partner, Ascentium Indonesia (an Ascentium Company) offers a seamless EoR solution—handling everything from BPJS registration to compliance so you can focus on growing your business.