Workers are entitled to get labor insurance to protect them from various occupational risks, one of which is by utilizing the benefits of BPJS Ketenagakerjaan.
One of the most recognized labor insurance in Indonesia is BPJS Ketenagakerjaan. So what exactly is labor insurance? Labor insurance is the protection provided by companies to labor or employees.
Even today, Labor or employee insurance is not only given to formal workers, but also for non-formal workers such as part-time workers.
In its development, non-formal workers who partner with the company can enjoy labor insurance contributions with affordable premiums.
For example, Labor insurance is also given to online motorcycle taxi drivers and online taxis. Even the special insurance plan for informal workers also touches other professions such as traders, farmers, and insurance for fishermen.
Labor insurance policy premiums for informal sector workers include very affordable. For example, BPJS Ketenagakerjaan provides a low premium of Rp 16,800 per month.
Benefits Of Attracting Labor Insurance
BPJS Ketenagakerjaan insurance for these workers provides quite a lot of benefits and protection against the risk of loss to several other guarantees that provide benefits for policyholders.
The amount of the premium was actually set following the rules of the law with the amount of 2 percent of the income of workers per month.
The shortage is borne by the company so that workers can get enough of the benefits of such insurance. The first benefit, workers get protection against all accidents that occur while in the work area.
This protection is also included in the event of an accident on the way to work or Home Office.
The second benefit, workers can get pension funds after leaving the company following the applicable provisions.
This pension fund can actually be taken in two ways, namely when workers leave or resign from the company in accordance with certain conditions or have entered retirement age.
The retirement age can also be adjusted according to each company’s policy. The third benefit, the insured workers will get compensation in the event of death.
Basically, if the death is natural or caused by an accident, it will still get compensation unless the death is included in the exception, for example, for violating traffic rules, speeding, and so on.
So, basically workers will get several benefits at once from labor insurance such as: Accident insurance. This work accident guarantee is given when participants have an accident while working either in the work environment or outside the labor environment such as when they have an accident when they want to go to the office.
Guarantee of death. This death guarantee is given to the heirs if the worker dies not due to a work accident.
Old age insurance. Workers get benefits in the form of cash at the time of retirement, death, or disability so that they can not make a living again.
Must know! The employer must pay for labor insurance
Basically, labor insurance liability is an integral part of the law in Indonesia.
These rules are regulated in the law of the Republic of Indonesia No. 40 of 2004 on the National Social Security System and law no.24 of 2011 on the Social Security Agency.
Get to know the Labor insurance that applies in Indonesia
These two legal umbrellas are the basis that employers are obliged to register their workers as participants in BPJS Kesehatan and BPJS Ketenagakerjaan.
At least if the workforce has worked for six months in the territory of Indonesia. Terms and conditions employers provide insurance to the workforce at least as below:
Participants working at least 6 months in Indonesia
Have a minimum of 10 (ten) employees
Workers receive wages of at least Rp 1,000,000 per month
This BPJS Employment Program As Employment Insurance
BPJS Ketenagakerjaan created by the Indonesian government has a lot of welfare programs, both for the short and long term, including:
Work Accident Insurance (JKK)
As the name implies, this program from BPJS Ketenagakerjaan will protect workers from the risk of accidents at work, on the way to and from work, official travel, to diseases due to the work environment.
The benefits that can be enjoyed are fairly complete. Starting from health services (care and treatment) without cost limits according to medical needs, compensation in the form of money, to assistance for readiness to return to work.
Well, the fees are fully borne by your company. Large and small depending on the level of risk of the job.
Death Insurance (JKM)
As a companion to BPJS Kesehatan, workers are also entitled to death insurance (JKM) when registered as a member of BPJS Ketenagakerjaan.
JKM is a protection for the risk of death of participants who are still actively working as employees who are not caused by work accidents.
This Program provides benefits and rights to heirs in the form of cash compensation totaling Rp 36 million
Old Age Guarantee (JHT)
Every worker will certainly touch the retirement age. When this happens, you will be able to fully enjoy the Old Age Guarantee program (JHT).
JHT is a guarantee program with benefits in the form of cash which is the accumulation of contributions plus the results of development on top of government bank deposit interest.
The requirement is that workers must reach the age of 56 years or retirement, die, or permanent total disability.