The implementation of Permenaker No. 5/2021 for JKK (Jaminan Kecelakaan Kerja), JKM (Jaminan Kematian), JHT (Jaminan Hari Tua)
(Jaminan Kecelakaan Kerja or “JKK”), Death Benefit (Jaminan Kematian or “JKM”) and Old-Age Insurance (Jaminan Hari Tua or “JHT”) in Indonesia is mainly regulated by the Regulation of the Government of the Republic Indonesia No. 44 of 2015. Further provisions are regulated under the Minister of Manpower of the Republic Indonesia No. 5 of 2021 concerning Procedures for the Implementation of Occupational Accident Insurance, Death Benefit and Old-Age Insurance Programs (“Permenaker 5/2021”) as the implementing regulation of Government Regulation of the Republic Indonesia No. 44 of 2015.
In addition to JKK, JKM and JHT provisions, Permenaker 5/2021 also provides the information on (i) Registration for Participation; (ii) Procedure for Reporting and Establishment of Benefits for BPJS of Employment Participants and Workers of Non-Participants of BPJS of Employment; (iii) Procedure for Reporting and Establishment of Benefits for Workers of Non-Participants of BPJS of Employment; and (iv) Procedures for Contribution Payment of JKK, JKM and JHT.
JKK is an insurance in the form of cash and/or health services to be provided in in the event of work injury or disease that caused by the work environment. JKM is a cash benefit provided to the employee’s family, in the event that the participant passed away not as a result of work injury. Meanwhile, JHT is a lump sum benefit, which is provided at once when the participant enters retirement age, passed away, or have any permanent disabilities. The main issue that is highlighted in Permenaker 5/2021, is that every employer shall be required to register their workers as a participant in JKK, JKM, and the JHT program of the BPJS of Employment in accordance with the provisions of laws and regulations by submitting the following forms: (i) Employer Registration; (ii) Worker Registration; and (iii) Worker Contribution details.
In case of any work injury or occupational diseases occurs, the Employers is required to report such incident to BPJS of Employment and Provincial Office or local labour inspection unit. The report shall be submitted in a period of no later than 2 (two) days since the incident. BPJS of Employment shall investigate and provide the concluding report regarding the work injury or occupational diseases reported by the employer, no later than 30 (thirty) days since the receipt of the report. Furthermore, such conclusion shall be notified to the provincial office or local labour inspection unit, no later than the 15th date of the following month. If the conclusion is considered as work injury or occupational diseases, then the BPJS of Employment shall provide the JKK in the form of health services in a designated health facility from the BPJS of Employment.
Furthermore, concerning the JKM, any employer who does not include their workers in JKM program with BPJS of Employment, the employer shall be required to pay the workers’ right in accordance with JKM benefits as regulated in the provisions of laws and regulations.
Permenaker 5/2021 also sets out the procedures for registration, payment contribution, report for specific workers, including (i) Daily Casual Workers, (ii) Piecemeal Workers, and (iii) Workers with Employment Agreements for a specific period of time in construction service business sector. It is to be noted that the issuance of Permenaker 5/2021 simultaneously revoked the previous regulation, Minister of Manpower of the Republic Indonesia No. 26 of 2015 on the same subject.
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