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Employee Benefits in Indonesia

Employee Benefits in Indonesia

Synopsis

The Indonesian social security system comprises the provident fund system and social insurance system. Social security in Indonesia covers a small proportion of the population with minimal benefits. The employment-linked systems of contributory social insurance only cover 17% of employed persons, while more than 80% of people employed in the informal economy are not covered under the social security system. With effect from January 1, 2014, a new regime of national social security has been implemented in Indonesia with an intention to cover all employees and residents under one healthcare system by 2019, as well as one employment benefits system by 2029. Under the new system, Badan Penyelenggara Jaminan Sosial (BPJS) Healthcare (BPJS Kesehatan) will administer healthcare benefits and BPJS Employment (BPJS Ketenagakarjaan) will administer employment benefits which cover against the risks of old age, death, occupational accidents and diseases. The employee benefits market in Indonesia is expected to register robust growth, as the country’s government is planning to be one of the world’s six largest global economies by 2030 as part of its long-term strategy.

Summary

The report provides in-depth industry analysis, information and insights into employee benefits in Indonesia, including:

  • An overview of state and compulsory benefits in Indonesia
  • Detailed information about private benefits in Indonesia
  • Insights into the various central institutions responsible for the administration of the different branches of social security
  • The regulatory framework of employee benefits in Indonesia
Scope

This report provides a detailed analysis of employee benefits in Indonesia:
  • It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
  • It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation, maternity and paternity benefits, family benefits, social assistance, redundancy benefit, leave and public holidays and private benefits
  • It highlights the economic and regulatory situations relating to employee benefits in Indonesia.
Reasons To Buy
  • Make strategic decisions using in-depth information related to employee benefits in Indonesia
  • Assess Indonesia’s employee benefits market, including state and compulsory benefits and private benefits
  • Gain insights into the key employee benefit schemes offered by private employers in Indonesia
  • Gain insights into key organizations governing Indonesia’s employee benefits, and their impact on companies
Key Highlights
  • The Indonesian social security system comprises the provident fund system and social insurance system
  • The provident fund system aims to cover employees working for a firm with 10 or more employees, or earning a monthly payroll of at least IDR1.0 million (US$86.5) against the risk of retirement and disability.
  • The social insurance system aims to cover employees who work for a firm with 10 or more employees and a monthly payroll of at least IDR1.0 million (US$86.5) against the risk of death, medical and occupational accidents and disease.


  • Executive Summary
  • Introduction
    • What is this Report About?
    • Definitions
      • Table Definitions
  • Country Statistics
    • Table Indonesia - Country Statistics
  • Overview of Employee Benefits in Indonesia
  • Regulations
    • Table Indonesia - Prohibited Positions for Foreign Workers
  • State and Compulsory Benefits
    • Table Contribution Rates - Retirement, Death and Disability Benefits
    • Table Indonesian Workmen's Compensation - Employer's Contributions
    • Retirement Benefits
      • Introduction
      • Types of retirement plans
      • Eligibility
      • Age
      • Pensionable salary
      • Benefits
      • Payment options
      • Typical employer practice
      • Employee and employer contributions
      • Taxation
        • Table Indonesian Taxation Rates - Lump-Sum Retirement Benefits
    • Death in Service
      • Introduction
      • Eligibility
      • Benefits
      • Payment options
      • Typical employer practice
      • Employee and employer contributions
      • Taxation
    • Long-Term Disability Benefits
      • Introduction
      • Eligibility
      • Benefits
      • Payment options
      • Typical employer practice
      • Employee and employer contributions
      • Taxation
    • Medical Benefits
      • Introduction
      • Eligibility
      • Benefits
      • Typical employer practice
      • Employee and employer contributions
    • Workmen's Compensation
      • Introduction
      • Eligibility
      • Benefits
      • Payment options
      • Typical employer practice
      • Employee and employer contributions
    • Maternity and Paternity Benefits
      • Introduction
      • Eligibility
      • Benefits
    • Family Benefits
      • Introduction
      • Eligibility
      • Benefits
      • Payment options
      • Employee and employer contributions
      • Taxation
    • Social Assistance
      • Introduction
      • Types of social assistance
      • Eligibility
      • Benefits
      • Payment options
    • Redundancy Benefit
      • Introduction
      • Eligibility
      • Benefits
      • Employee and employer contributions
    • Leave and Public Holidays
      • Introduction
      • Annual leave
      • Sick leave
        • Table Indonesia - Sick Leave
      • Personal leave
        • Table Indonesia - Personal Leave
      • Public holidays
        • Table Indonesia - Public Holidays
  • Private Benefits
    • Retirement Benefits
    • Disability Benefits
    • Death Benefits
    • Work Injury Benefits
    • Medical and Health Benefits
    • Other Benefits
  • Macroeconomic Indicators
    • Economic Performance
      • GDP at constant prices (US$)
      • GDP per capita at constant prices (US$)
      • GDP at current prices (US$)
      • GDP per capita at current prices (US$)
      • GDP by key sector
      • Inflation rate
      • Annual average exchange rate US$-IDR
      • Labor force
      • Unemployment rate
      • Gross national disposable income
      • Household consumption expenditure
    • Demographics
      • Total population
      • Urban and rural populations
  • Appendix
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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