Obligations of Employers to Register Their Workers with BPJS Employment

The Social Security Organizing Agency (BPJS) was formed to realize the goal of the national social security system, which is to provide certainty of protection and social welfare for all people. BPJS was formed based on Law Number 24 of 2011 concerning the Social Security Organizing Agency.

Employment BPJS which is part of the BPJS organizes work accident insurance, old age insurance, pension insurance, and death insurance (Article 6 paragraph (2) of Law 24/2011).

There is an obligation for employers who are not state administrators in accordance with the scale of their business to register their workers with the BPJS Employment, which consists of (Article 6 Perpres 109/2013):

  1. Large businesses and medium-sized businesses are required to take part in a work accident insurance program, old age insurance, pension insurance, and death insurance.
  2. Small businesses are required to take part in a work accident insurance program, old age insurance, and death insurance.
  3. Micro-businesses must follow a work accident insurance program and death insurance.

It is meant by big business is a productive economic effort carried out by a business entity with an amount of net wealth or annual sales greater than a medium business, which includes national or private-owned businesses, joint ventures, and foreign businesses that carry out economic activities in Indonesia (Article 1 number 13 Perpres 109/2013).

Medium business is defined as a productive economic enterprise that is independent, carried out by individuals or business entities with the criteria of having a net worth of more than Rp. 500,000,000 (five hundred million rupiahs) up to a maximum of Rp. 10,000,000,000 (ten billion rupiahs). does not include land and buildings of business premises or has annual sales of more than Rp. 2,500,000,000 (two billion five hundred million rupiahs) up to a maximum of Rp. 50,000,000,000 (fifty billion rupiah)) (Article 6 paragraph (3) Law 20/2008).

What is meant by small business is a productive economic enterprise that is independent, carried out by individuals or business entities with the criteria of having a net worth of more than Rp. 50,000,000 (fifty million rupiahs) up to a maximum of Rp. 500,000,000 (five hundred million rupiahs) not including land and building business premises or having annual sales of more than Rp. 300,000,000 (three hundred million rupiahs) up to a maximum of Rp. 2,500,000,000 (two billion five hundred million rupiahs)) (Article 6 paragraph (2) Law 20 / 2008).

What is meant by micro-enterprise is a productive economic enterprise owned by an individual and / or an individual business entity with the criteria of having net wealth excluding land and buildings where the business is no more than IDR 50,000,000 (fifty million rupiahs) or having annual sales of a maximum of IDR 300,000,000 (three hundred million rupiahs) (Article 6 paragraph (1) of Law 20/2008).

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