New BPJS Pension Contribution Rate – What and Why Indonesia businesses should take note
Based on the official statistics of BPS No. 172/02/Th. XXIV dated February 5, 2020, the Central Statistics Agency has announced that the inflation rate in 2019 to be at 5.02%.
In this regard, the basic calculation of the Pension Insurance Contribution that was previously Rp. 8,512,400 will be marked up to Rp. 8,939,700 starting from March 2020.
All companies located in Indonesia will have to make amendments according to the new Pension Contribution rate starting from March 2020.
With regards to existing clients who have been using JuzTalent before 18 February 2020 as their HR and Payroll Management System, kindly follow this step-by-step guide on how to add the new BPJS Pension Contribution rate in ePayroll and have this rule activated on 1st March 2020.
As for our new clients that have onboarded onto JuzTalent on 18 February 2020 onward, this new BPJS Pension Contribution rate has been embedded into the system for usage. Hence, you do not have to worry about adding the rate independently as we have done it for you.
Have a good week and let’s all continue to stay tax penalty-free!