Here is a regulation update from the Indonesian Government Authority in regard to the maximum wage base applied to the BPJS Kesehatan (Healthcare and Social Security Agency) Premium that became effective on May 1, 2016. This change does impact employee payroll and employer costs.
- The update of the Maximum Wage is as follows:
- Previous Maximum Wage Base was IDR. 4,725,000
- Employer Contribution 4% from maximum wage: IDR. 4,725,000 x 4% = IDR. 189,000
- Employee Contribution 1% from maximum wage: IDR. 4,725,000 x 1% = IDR. 47,250
- New Maximum Wage Base is IDR. 8,000,000 (Monthly Base)
- Employer Contribution 4% from maximum wage: IDR. 8,000,000 x 4% = IDR. 320,000
- Employee Contribution 1% from maximum wage: IDR. 8,000,000 x 1% = IDR. 80,000
(Note—the minimum wage base is IDR. 3,100,000.)
Additionally, the authority has mentioned that the premium period of April 2016 (which should be settled before April 10, 2016) was a temporary premium, therefore, once this new regulation is applied, there would be some adjustment to the short payment premium period of April 2016 that has to be settled on the premium period of May 2016. You should see this reflected in the May 2016 payroll run.
