Pension
The social insurance system covers public and private sector employees but excludes self-employed individuals (they can still contribute to provident fund schemes). The contributions of an insured person and the employer are 1% of gross monthly covered earnings and 2% of gross monthly covered payroll, respectively.
Insured persons can qualify for an old-age pension (manfaat pensiun hari tua) at age 57 with at least 180 months of contributions. Insured persons aged 57 with less than 180 months of contributions qualify for an old-age settlement.
Insured persons who qualify for the old-age pension will receive 1% of their average adjusted annual earnings divided by 12 and multiplied by the number of years of contributions is paid. The maximum and minimum pension amounts are adjusted every 2 years.
Dependents/Survivors Benefits
In Indonesia, employers must pay severance entitlements to the heirs of an employee when the employment relationship terminates because of the employee's death. The payment must be 2 times the amount of severance pay and the ordinary amount for any entitlement compensations or long-service benefits.
Eligible survivors can also qualify for a survivors pension if the deceased received or was entitled to a social insurance old-age or disability pension, had at least one year of contributions and had a contribution payment compliance rate of at least 80% (calculated as the deceased's years of contributions divided by his or her years of membership).
Eligible survivors include a widow(er) (until death or remarriage), children (until they are 23 years old, working, or married) and parents (if there is no eligible spouse or child).
Eligible survivors of deceased insured persons whose death was related to an occupational injury are entitled to a lump sum of 60% of 80 months of the deceased's earnings in the month before death, plus INR 200,000 (Indonesian rupiahs) a month for 24 months.
Invalidity Benefits
In Indonesia, the social insurance system provides for disability benefits and mandatory life insurance for workers. All employed persons working in the formal and informal sectors, including foreign employees who have worked at least 6 months in Indonesia, are eligible for life insurance benefits.
Contributions for work injury benefits are entirely covered by the employer. The amount of contribution for employers varies with work environment risk (expressed as classes I-V).