How to Register Employee with BPJS Ketenagakerjaan

If your company operates in Indonesia, one important step after hiring employees is to ensure they are registered with BPJS Ketenagakerjaan.

You should handle the administration of BPJS Ketenagakerjaan registration for employees who have not yet joined this employment social security program.

What is BPJS Ketenagakerjaan?

BPJS Ketenagakerjaan, also known as BP Jamsostek, is a social security agency that provides employment-related benefits. It was established to protect and improve the welfare of Indonesian workers and their families.

This agency differs from BPJS Kesehatan, which focuses on health. However, participation in both BPJS Ketenagakerjaan and/or BPJS Kesehatan is mandatory for employees.

BPJS Ketenagakerjaan manages several state-run social insurance programs for wage earners (PU):

1. Work Accident Insurance (JKK) provides compensation for work-related accidents, injuries, disabilities, and death;
2. Death Insurance (JKM) offers financial benefits to families or beneficiaries if the insured worker dies from non-work-related accidents or diseases;
3. Old Age Security (JHT) aims to provide income security for workers after retirement through a savings scheme;
4. Pension Program (JP) ensures regular income for workers after they retire from formal employment; and
5. Unemployment Benefit (JKP) provides benefits to workers who lose their jobs due to layoffs.

BPJS Ketenagakerjaan functions similarly to an insurance company, but it is not a commercial entity seeking profit; its services aim to support Indonesia’s social welfare policy.

Also Read: NPWP : Key to Tax Compliance in Indonesia

BPJS Ketenagakerjaan Scheme

BPJS Ketenagakerjaan operates on a contribution scheme. To receive social security protection and benefits, workers must pay regular monthly contributions as per regulations.

Here’s how the payment scheme generally works:

• Contributions: Employers and employees must make monthly contributions to BPJS Ketenagakerjaan based on the employee’s gross monthly salary, calculated as a percentage of that salary.
• Percentage Split: Contribution rates are typically divided as follows:
  • Employers cover the full contributions for Work Accident Insurance (0.24% – 1.74%) and Death Insurance (0.3%), as well as a larger percentage for Old Age Security (3.7%) and Pension Program (2%).
  • Employees pay a smaller percentage for Old Age Security (2%) and Pension Program (1%).
• Contribution Payment Procedures: Contributions are generally deducted through a payroll system, where employers withhold the employee’s share and add their own contribution. These amounts are then remitted to BPJS Ketenagakerjaan monthly.
• Adjustments: Contribution rates and regulations may be periodically adjusted by BPJS Ketenagakerjaan or the Indonesian government to ensure sustainability and adequacy of benefits.
• Benefits: Once contributions are made, employees become eligible for the social security benefits offered by BPJS Ketenagakerjaan.

The Importance of BPJS Ketenagakerjaan Registration

According to the Manpower Law No. 13/2003, Article 99, every worker and their family has the right to labor social security. The BPJS Law No. 24/2011 mandates that employers register themselves and their employees, including foreign workers employed in Indonesia for at least six months.

Registering employees with BPJS Ketenagakerjaan is crucial for employers for several reasons:

• Legal Compliance: Ensures adherence to Indonesian labor laws, avoiding penalties, fines, and other sanctions.
• Employee Welfare and Retention: Demonstrates a commitment to social security protections, enhancing employee satisfaction and retention.
• Risk Management: Mitigates risks associated with workplace accidents by providing coverage for medical expenses, disability benefits, and rehabilitation.
• Employer Branding: Enhances reputation as a responsible employer, attracting talent seeking job security and benefits.
• Access to Government Contracts and Benefits: Some government contracts require proof of compliance with social security regulations.

Also Read: News Spreads Out that Selfie is The Hottest Attendance System in Indonesia

BPJS Ketenagakerjaan Registration Procedures

Companies can register workers with BPJS Ketenagakerjaan through three channels: branch offices, the official website, and cooperation partners. Before register employee with BPJS Ketenagakerjaan, ensure you have the following documents ready:

• Employer or business entity registration form
• Registration form/change of employee data
• Detailed report of employee contributions
• Company’s Tax Identification Number (NPWP)
• Company owner’s ID card (KTP)
• Employee’s ID card (KTP) or foreign worker’s passport
• Business place permit/trade business permit/business registration number

Registration at the Branch Office

1. Visit the BPJS Ketenagakerjaan branch office with all required documents;
2. Fill out the registration form;
3. Take a queue number and wait for your turn;
4. Hand over the documents when called;
5. The officer will inform you of the contribution amount and provide a payment code;
6. Receive a receipt for your registration documents;
7. Make the payment through the designated payment channel;
8. After payment, receive your certificate and participant card (Kartu BPJS Ketenagakerjaan) within seven days;
9. Learn about the SIPP Online registration process for monthly reporting.

Registration on the Website

The online registration method is faster and eliminates the need for queuing:

1. Visit www.bpjsketenagakerjaan.go.id;
2. Click on the Participant Registration menu and select ‘Penerima Upah’ (PU);
3. Fill in all requested data, including employer details, employee information, and contact numbers;
4. After completion, obtain the contribution code and payment amount;
5. Make the contribution payment through your chosen channel;
6. Receive the BPJS Ketenagakerjaan participant card and certificate no later than seven days after payment;
7. Register employee with BPJS Ketenagakerjaan for SIPP Online for monthly reporting and management of participant data;

Also Read: The Benefits of Using Payroll Outsourcing Services in Indonesia

Ongoing Compliance

After register employee with BPJS Ketenagakerjaan, ensure compliance by making timely monthly contributions and updating BPJS Ketenagakerjaan with any changes to employee or company data.

To accurately calculate employee contributions, consider using Gadjian, a leading HRIS payroll software in Indonesia. This web-based payroll system includes a BPJS calculator that automatically computes monthly premiums (contributions) for BPJS Ketenagakerjaan and/or BPJS Kesehatan.

Simply input the employee’s salary in the application settings, and the system will calculate the necessary social security contributions for both employer and employee.

On the online payslip, the calculation of BPJS contributions will appear in detail as follows:

• Employer-paid allowances: JKK 0,24% to 1,74% of salary, JKM 0,3% of salary, JHT 3,7% of salary, JP 2% of salary, and JKN (healthcare) 4% of salary.
• Employee-paid portions: JHT 2% of salary, JP 1% of salary, and JKN 1% of salary.
• Contributions deducted from employee’s payslip: JKK 0,24% to 1,74% of salary, JKM 0,3% of salary, JHT 5,7% of salary, JP 3% of salary, and JKN 5% of salary.

In addition, Gadjian provides easy online reporting to BPJS Ketenagakerjaan. This payroll cloud application keeps participant data up-to-date, allowing you to upload them on the SIPP Online.

Gadjian is a comprehensive HR solution that integrates payroll systems with payment applications such as Flip, Mandiri Cash Management, and Brankas-BCA. You can calculate your employees’ payslips and all salary components, including income tax, and then click ‘pay’ to complete the salary payment.

The SaaS software makes your company’s payroll more efficient. It streamlines the process, reduces error, improves accuracy, and saves your time.

Last but not least, Gadjian is regularly updated to align with the latest regulations on labor, wage, and taxation in Indonesia. It will help your company stay compliant with domestic laws.