Introduction
In Indonesia, employers are required to enrol employees in two social security bodies: BPJS Kesehatan for healthcare and BPJS Ketenagakerjaan for old-age savings, pension, work accidents, and death benefits. This guide covers all contribution rates applicable for 2025, including recent cap adjustments.
BPJS Kesehatan (Health Insurance)
BPJS Kesehatan contributions total 5% of monthly salary, split between employer (4%) and employee (1%). The maximum salary base is IDR 12,000,000 per month. The programme covers medical services for the employee and up to 4 family members. Higher-tier coverage requires separate private health insurance, which many Indonesian employers provide as a benefit.
BPJS Ketenagakerjaan (Employment Social Security)
BPJS Ketenagakerjaan consists of four programmes: JHT (Old Age Savings) at 5.7% (3.7% employer + 2% employee) with no salary cap -- this provides a lump-sum payout at age 56; JP (Pension) at 3% (2% employer + 1% employee) capped at IDR 10,042,300 per month for 2025; JKK (Work Accident) at 0.24%-1.74% depending on industry risk class, 100% employer; and JKM (Death Benefit) at 0.3%, also 100% employer. The JP cap is adjusted annually based on wage inflation.
Summary of Employer Costs
Total employer statutory costs in Indonesia range from approximately 10.89% to 12.39% of gross salary, depending on the industry risk class for JKK. For a medium-risk industry (Class III, 0.89%), total employer contributions amount to about 10.89% (4% Kesehatan + 3.7% JHT + 2% JP + 0.89% JKK + 0.3% JKM). This is relatively moderate compared to other Asian economies, though employers should also account for THR (religious holiday allowance equal to one month's salary) and annual leave as additional costs.
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