BPJS contributions or Employee Insurance Premiums Paid by the Company
BPJS is a social security program organized by the Social Security Organizing Agency. Where, every Indonesian and foreign citizen (WNI / WNA) who has lived in Indonesia for more than 6 months are required to become BPJS members.
BPJS contributions are paid by employers and workers with a percentage of contributions from salaries or wages (it is not explained in the regulation that this salary is the basic salary, gross salary, net salary, etc.) specified in the Government Regulation.
Work Accident Insurance (JKK)
Furthermore, there is also Work Accident Insurance or JKK, which is compensation and rehabilitation for workers who have an accident when they start leaving for work until they get back home.
It could also be when employees suffer from work-related illnesses. JKK contributions are usually paid in full by the company. The amount of contribution is based on the type of business and risk group:
Group I: premium of 0.24% x monthly work wage.
For group II: premium of 0.54% x monthly work wage.
Group III: premiums of 0.89% x monthly work wages.
For group IV: premium of 1.27% x month’s wage.
Group V: premium of 1.74% x monthly work wage.
Death Guarantee (JK)
In addition to work accident insurance, it is necessary to pay PPh 21 for life insurance. This is intended for heirs of BPJS Employment program participants who died not because of work accidents.
In this case, the employer is obliged to bear the Death Insurance program contribution of 0.3% of salary or wages.
Health Insurance (JKes / BPJS Health) is valid since July 2015
Then there is another Health Insurance which is a program of BPJS Health and followed by taxpayers.
Since 1 July 2015, the Health Insurance contribution rate is 5% of the monthly salary, which is 4% paid by the employer and 1% by the employee.
The salary or salary used as the basis for calculating Health Insurance contributions consists of salary or basic salary and fixed benefits.
The highest limit for salaries or wages per month used as the basis for “calculation of contributions is 2 times the PTKP with marital status with 1 child. Then, for other families, which consist of fourth children and so on, parents and parents-in-law, the contribution rate is 1% per person from salary / wages “.
Income Tax Allowance 21
For employers who provide PPh 21 allowances to their employees, in this case the PPh 21 allowance is full or in part, the total PPh 21 allowance is a component of gross income enhancement.
While the salary calculation method for employees who receive PPh 21 allowances is the net salary method or gross-up.
For employers who provide BPJS benefits (JKK, JK, JP, JKes) in full with the method of calculating net salary or gross up, then this benefit is used as a component of gross income enhancement.
Gross income reduction
The reduction in gross income is also included in the component of how to calculate PPh 21, which is a cost that can reduce gross or gross income. These include:
Represents costs assumed by tax officers as expenses (costs) for a year related to work. In the 20116 PTPK, it was determined that office costs were 5% of annual gross income and a maximum of Rp 500,000 a month or Rp 6 million a year. From ordinary staff to directors are entitled to a reduction in gross income.
There is also a pension fee as a component of how to calculate Income Tax 21. It is a deduction from gross income in calculating Article 21 Income that is owed and must be deducted from the income received by the pension recipient on a monthly basis.
The amount of pension costs set in the 2016 PTPK is 5% of gross income and a maximum of Rp 200,000 per month or Rp 2,400,000 per year.