24 May, 2016
Amendment of Work Accident Security and Death Security implementation for Daily Employees and Fixed-Term Employees in the construction Sector
Amendment of Work Accident Security and Death Security for Daily Employees and Fixed-Term Employees in the Construction Sector as the result of a new regulation on the mandatory social security program.
Ministry of Manpower Regulation no. 44 of 2015 dated 31 December 2015 regarding the implementation of Work Accident Security and Death Security for Daily Employees and Fixed-Term Employees in the construction Sector (“Reg. 44”).
Reg. 44 revokes and replaces Ministry of Manpower Regulation No.KEP-197/MEN/1999 dated 29 September 1999 regarding the Implementation of Mandatory Social Security for Daily Employees and Fixed-Term Employees in the Construction Sector (“Reg. 197”). Reg. 44 was issued following the introduction of a new social security law.
This new regulation does not change the contribution employers must make to the employment social security agency, or BPJS Ketenagakerjaan. The employer contribution for daily employees, contract employees and xed-term employees is as follows:
Work Accident Security, amounting to 1.74% of the employee’s monthly wage; and Death Security, amounting of 0.30% of the employee’s monthly wage.
For further information, please contact:
Richard D. Emmerson, Soewito Suhardiman Eddymurthy Kardono
richardemmerson@ssek.com
