Protecting Workers’ Savings – Thu, February 17, 2022

Union leaders reportedly did not react so emotionally to the Labor Minister’s new regulation on new procedures for applying for old-age pension or retirement savings from the Workers’ Social Security Agency (BPJS Ketenagakerjaan) , had the new rules been vigorously debated through the tripartite machinery of government, employers and trade unions.

The fact is that the requirements for claiming retirement savings (JHT) were to be revised after the introduction of unemployment benefits as the fifth component of the employment insurance scheme. The other four components being health, workers’ compensation, retirement and life insurance.

Unemployment benefit, amounting to 45% of a worker’s monthly salary for the first three months and 25% for the following three months, will come into effect later this month under the 2020 law. on job creation. The government has allocated 6 trillion rupees ($428 million) for the initial capital of the program.