Mandatory BPJS Health Insurance
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Posted on 16 July 2024

What is BPJS health insurance and why is it mandatory?

BPJS health insurance is a national health insurance scheme that covers all Indonesian citizens and foreign workers who have been working in Indonesia for at least six months. The scheme is managed by the Social Security Agency (BPJS) and aims to provide universal health coverage and access to quality health care services.

According to Law No. 24 of 2011 on the Social Security Agency, all employers in Indonesia are required to register their employees in BPJS health insurance and pay a monthly premium on their behalf. The premium rate is 5% of the employee's monthly salary, of which 4% is paid by the employer and 1% is deducted from the employee's salary. The premium rate may vary depending on the type and level of health care services that the employee chooses.

BPJS health insurance is not an employee benefit but an employer requirement by law. Employers who fail to comply with this obligation may face legal consequences and damage their reputation as a responsible employer.

When should employers enroll employees in BPJS health insurance?

One of the common questions that employers have is whether they have to enroll their employees in BPJS health insurance from the first day of employment or can wait until the end of a three month probation period. The answer is that employers should enroll their employees in BPJS health insurance as soon as possible, preferably from the first day of employment.

According to the BPJS website, employers have a maximum of 30 days to register their employees in BPJS health insurance after they start working. If the employer fails to do so within 30 days, they will be subject to a penalty of 2.5% of the total premium that should have been paid for the employee. The penalty will be charged for every month of delay until the employee is registered.

Andrew Hairs, the CEO of Select Headhunter, a recruitment agency that specializes in finding and placing qualified candidates for various industries in Indonesia, advises employers to enroll their employees in BPJS health insurance as soon as they join the company. He says, "BPJS health insurance is not only a legal obligation but also a moral duty for employers. By enrolling your employees in BPJS health insurance, you are showing them that you care about their health and well-being, and that you respect their rights as workers. This will also boost their loyalty and productivity, and reduce the risk of absenteeism and turnover."

What are the consequences for employers who do not register employees in BPJS health insurance?

Employers who do not register their employees in BPJS health insurance may face serious consequences, both legal and non-legal. Some of the possible consequences are:

  • Fines: Employers who do not register their employees in BPJS health insurance may be fined up to 10% of the total premium that should have been paid for the employee, plus the penalty of 2.5% per month of delay. The fines will be collected by the BPJS and used to fund the health insurance scheme.

  • Lawsuits: Employees who are not registered in BPJS health insurance may sue their employers for compensation if they suffer from any illness or injury that requires medical treatment. The employees may claim that their employers have violated their rights and obligations under the law and the employment contract. The lawsuits may result in costly settlements or judgments for the employers.

  • Revocation of business licenses: Employers who do not register their employees in BPJS health insurance may also risk losing their business licenses or permits. The Ministry of Manpower and the BPJS may conduct inspections and audits to check the compliance of employers with the BPJS health insurance scheme. If the employers are found to be non-compliant, they may be issued warnings, sanctions, or revocation of their business licenses or permits.

Andrew Hairs warns employers not to take the BPJS health insurance scheme lightly. He says, "BPJS health insurance is not a matter of choice but a matter of law. Employers who do not register their employees in BPJS health insurance are not only breaking the law but also endangering their employees' health and their own business. The consequences of non-compliance are severe and can affect the employers' reputation, finances, and operations. Therefore, I urge all employers in Indonesia to register their employees in BPJS health insurance as soon as possible and avoid any unnecessary risks and troubles."

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