As Indonesian employers grapple with repaying deferred social security contributions (between 15 May 2021 and 15 April 2022), dismissed Indonesian employees may find financial relief in the recently introduced Job Loss Guarantee program (Jaminan Kehilangan Pekerjaan - JKP).

Effective 2 February 2021, eligible social security participants may receive cash benefits for a period of up to six months (45% of reference salary for the first three months and 25% thereafter). A mandatory waiting period of five years applies between claims and the total number of claims is capped at three per person.

JKP benefits are funded by a government contribution and employer contributions (0.1% diverted from the Death Insurance program (JKM) contribution and 0.14% diverted from the Work Accident Insurance program (JKK) contribution).

Additional benefits of the JKP program include access to career counselling, labour market services and work competency-based job training programmes. 

Want to know more about how key employee benefits are being affected by new government programmes? Find out with Axco.