Recently, foreign companies operating in Indonesia have been receiving notifications of their failure to register employees with the BPJS Employment (BPJS Ketenagakerjaan) social security system, as required by Indonesian law. This has become a pressing issue, and the notifications typically request company representatives to meet with BPJS officers at one of their branches in Bali.
Consequences of Non-Compliance with the Law
The letters also warn that failure to comply with the registration requirements could result in administrative penalties in accordance with Government Regulation No. 86 of 2013. Companies are advised to register their employees within 10 days of receiving the notification to avoid further punitive measures.
Why It Is Important to Register Employees with BPJS Employment
Providing social security for employees is a mandatory requirement under Indonesian law. BPJS Ketenagakerjaan offers several important protections, including:
- Workplace Accident Protection: Compensation for injuries and medical treatment in case of workplace accidents.
- Pension Protection: Guarantees for receiving a pension upon reaching the requisite age.
- Unemployment Protection: Assistance and support in case of dismissal, especially if the employee has worked for the same company for more than 10 years.
- Death Protection: Payments to the employee's family in the event of death while employed.
To obtain this type of insurance, one must reside in Indonesia for at least six months. This is a mandatory condition for opening BPJS.
Complying with BPJS Ketenagakerjaan requirements not only helps protect the rights and well-being of employees but also enhances the company's reputation as a responsible employer. Neglecting these obligations can lead to serious financial and legal consequences.
To avoid problems and ensure the safety of their employees, employers must diligently fulfill their registration duties with BPJS Employment.
This is not only a legal requirement but also a significant contribution to the stable development of the business and the protection of its employees.
If you have not yet registered your employees in the BPJS Employment social security program, Legal Indonesia is ready to assist you in this process. Their specialists will provide complete support and help you avoid bureaucratic complexities, ensuring compliance with legislative requirements.
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