Did you just search “BPJS in Indonesia“, “BPJS Ketenagakerjaan” or “BPJS Kesehatan” and land here? If so, you’re in the right place.
In this article, we answer the most common questions about Indonesia’s BPJS social security and healthcare programs.
As Jakarta’s premier headhunter company, with 1,000+ leadership hires completed since 2014, we regularly support businesses that are entering the Indonesian market or making their first senior-level hire.
One of the questions that always comes up is BPJS:
Companies want to know what it costs and how BPJS contributions are divided between employer and employee.
This guide is designed to give you a clear and practical overview of the essentials.
BPJS is the Indonesian government agency responsible for administering the country’s social security and healthcare programs.
The system was formalized in 2011 when the Indonesian government reformed the National Social Security System and enacted Law No. 24/2011 on the Social Security Organizing Body (the “BPJS Law”).
When a company hires an employee in Indonesia, it is legally required to register the individual with BPJS — short for Badan Penyelenggara Jaminan Sosial.
The BPJS framework consists of two separate programs:
BPJS Ketenagakerjaan (Social Security)
BPJS Kesehatan (Healthcare)
This obligation applies to both Indonesian and expatriate employees.
For expatriates, enrollment is required once they have worked in Indonesia for more than six months (a rule effective since January 2019).
The Two Elements of BPJS in Indonesia: Social Security and Healthcare
1) BPJS Ketanagakerjaan (Social Security)
The BPJS Ketenagakerjaan program provides employees with financial protection, including pension benefits, old-age savings and life insurance.
It also covers hospital and medical expenses for work-related accidents.
2) BPJS Kesehatan (Healthcare)
The BPJS Kesehatan program provides employees with access to government-run healthcare services, excluding costs related to workplace accidents (covered under BPJS Ketenagakerjaan).
BPJS Ketenagakerjaan: Social Security Explained
Companies must register their employees with BPJS Ketenagakerjaan (Social Security).
Employers are required to pay a monthly BPJS Social Security premium for each employee.
The cost of the premium is split between the company and the employee.
The company’s contribution is paid in addition to the employee’s salary.
The employee’s contribution is deducted directly from their monthly salary.
In return, BPJS Ketenagakerjaan provides the employee with the following benefits:
- Work Accident Protection (JKK) – Covers the cost of accidents that occur as a result of work duties;
. - Life Insurance (JKM) – Provides a cash benefit to the employee’s heirs in the event of their death;
. - Old Age Security (JHT) – A lump-sum cash benefit upon retirement or termination of employment;
. - Pension Benefits (JP) – A guaranteed monthly income during retirement.
BPJS Ketenagakerjaan: Monthly Cost – Who Pays What:
| Item | Paid by Company % of Monthly Income | Paid by Employee % of Monthly Income |
| Work Accident Protection The % will depend on the risk category of the work environment. Calculated based on the employees fixed monthly income – no maximum income limit | 0.24 to 1.74 % | – |
| Life Insurance Calculated based on the employees fixed monthly income – no maximum income limit | 0.3% | – |
| Old Age Security Calculated based on the employees fixed monthly income – no maximum income limit | 3.7% | 2% |
| Pension Benefits Calculated based on the employees fixed monthly income – up to a maximum income of IDR 10,547,400 (March 2025). This maximum is updated annually. | 2% Max Cost IDR 210,948 | 1% Max Cost IDR 105,474 |
As can be seen, the largest cost item for a business is Old Age Security (JHT).
For this, a company must contribute 3.7% of the employee’s fixed monthly income. Importantly, there is no salary cap for JHT calculations — the full fixed monthly salary is used for calculation purposes.
All BPJS Social Security calculations are based on an employee’s regular fixed monthly income, not including bonuses or other variable allowances.
It’s also important to note that the company’s contributions are paid in addition to the employee’s salary — they are a separate cost item that employers must budget for each month.
BPJS Kesehatan: Healthcare Explained
Universal healthcare is a national priority for the Indonesian government.
Under Presidential Regulation No. 12 of 2013, all Indonesians are required to register with BPJS Healthcare.
Today, membership covers around 278 million people, making it one of the largest healthcare programs in the world.
For individuals, BPJS Healthcare registration is handled personally. However, for employees, the process and payments are managed by the employer.
A company must pay a monthly premium to BPJS Healthcare for each employee.
The BPJS Kesehatan cost is shared between the company and the employee.
The company’s portion is an additional cost on top of the employee’s salary.
The employee’s contribution is deducted directly from their monthly salary.
In return, employees gain access to government-managed healthcare services for themselves, their spouse, and up to three dependent children under the age of 21 — or up to age 25 if the children are still pursuing formal education.
BPJS Kesehatan: Monthly Cost – Who Pays What:
| Paid by Company % of Monthly Income | Paid by Employee % of Monthly Income | |
| Healthcare Cover Calculated based on the employees fixed monthly income – up to a maximum income of IDR 12,000,000 (January 2020). | 4% Max Cost IDR 480,000 | 1% Max Cost IDR 120,000 |
Calculations are based on an employee’s fixed regular monthly income and do not include bonuses or other variable pay.
It is also important to note that the company’s BPJS Kesehatan contributions are paid in addition to the employee’s salary.
Example of a BPJS Cost Calculation
Lets assume an employee earns IDR 130,000,000 a month as their fixed Gross income (before tax), and the work environment is classified as low risk:
The BPJS Cost to the Company – in addition to salary:
- Work Accident Protection – 130,000,000 X 0.24% = IDR 312,000
. - Life Insurance – 130,000,000 X 0.3% = IDR 390,000
. - Old Age Security – 130,000,000 X 3.7% = IDR 4,810,000
. - Pension Benefits – 10,547,400 (maximum) X 2% = IDR 210,948
. - Healthcare – 12,000,000 (maximum) X 4% = IDR 480,000
Total cost to the business, on top of salary = IDR 6,202,948
The BPJS Cost to the Employee – as a deduction from their salary:
- Work Accident Protection = N/A
. - Life Insurance = N/A
. - Old Age Security – 130,000,000 X 2% = IDR 2,600,000
. - Pension Benefits – 10,547,400 (maximum) X 1% = IDR 105,474
. - Healthcare – 12,000,000 (maximum) X 1% = IDR 120,000
Total cost to the employee = IDR 2,825,474
How the BPJS Payment Process Works
Each month, companies are required to calculate the BPJS contributions due for all employees.
These consist of two parts:
- Employer Contribution – paid by the company on top of the employee’s salary.
- Employee Contribution – withheld by the company as a deduction from the employee’s salary.
The company must deduct the employee portion from monthly payroll and then remit both the employer and employee contributions together to BPJS.
All BPJS contributions must be paid no later than the 15th day of the following calendar month. So for BPJS costs that are related to February, payment is due by 15th March (latest).
Late payments may result in fines or administrative sanctions.
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