JKP in Indonesia: Job-Loss Insurance for Employers

JKP (Jaminan Kehilangan Pekerjaan, job-loss insurance) is Indonesia’s state benefit for an employee whose employment is terminated. The social security law (Undang-Undang, UU) gives the right (UU 40/2004, Article 46A), and BPJS Ketenagakerjaan, the employment social security agency, runs JKP in Indonesia with the central government. The detailed rules are in a government regulation (Peraturan Pemerintah, PP), PP 37/2021 as amended by PP 6/2025, in force since 7 February 2025.

For an employer, JKP adds no contribution and no separate registration. It adds a few steps when someone leaves, so that the former employee can claim.

What JKP costs an employer

Nothing on top of what you already pay. The law says the contribution is paid by the central government (UU 40/2004, Article 46C(2)). The regulation sets it at 0.36% of monthly wages (PP 37/2021, Article 11(2) to (5), as amended). Of that, the central government pays 0.22%, and 0.14% comes out of the work-accident contribution (JKK) the employer already pays, so the employer’s total stays the same. The employee pays nothing for it either. The rates for each BPJS programme are in our guide to BPJS contributions in Indonesia.

The contribution and the benefit are both worked out on the last wage the employer reported to BPJS, up to Rp5 million a month (Article 11(6) to (8)).

Who is covered

The employer must enrol its employees in JKP (Article 2(1)). This happens through BPJS: an employee already registered with BPJS Ketenagakerjaan who meets the conditions becomes a participant automatically (Article 5(1)). A participant is:

• an Indonesian citizen
• younger than 54 when registered
• employed by the employer, on a fixed-term (PKWT) or permanent (PKWTT) contract (Article 19(1))
• enrolled in the other BPJS programmes the business must provide, and registered for state health cover (Article 4(2) and (3), as amended)

JKP is for Indonesian citizens, so a foreign employee is not a participant. For them the full work-accident contribution applies, with nothing moved to JKP (Manpower Ministry regulation, Permenaker, 7/2021, Article 17, as amended by Permenaker 3/2025).

What a former employee receives

The cash benefit is 60% of the last reported wage each month, for up to 6 months (PP 37/2021, Article 21(1), as amended). After the first month, payments continue while the person is still out of work and looking for a job (Permenaker 15/2021, Article 13(3) and (4), as amended by Permenaker 2/2025).

JKP also gives access to job-vacancy information and career guidance, and to competency-based job training (PP 37/2021, Articles 18, 25 and 30). An employee can claim up to 3 times in a working life, with 5 years of contributions between claims (Article 35).

Which terminations qualify for JKP in Indonesia

An employee whose employment is ended by the employer, or by mutual agreement, can claim once they have 12 months of contributions within the 24 calendar months before the termination (Articles 19(3) and 20(3), as amended). The months need not be in a row, and months with an earlier employer count too (the regulation’s official explanation of Article 19(3)). The person must be willing to work again, as an employee or self-employed (Article 19(2)).

JKP is not paid where employment ends by resignation, total permanent disability, retirement or death (Article 20(1)). An employee on a fixed-term contract qualifies when the employer ends the contract before its term (Article 20(2)).

When an employee leaves: how a JKP claim works

1. 1
   Day 0

   Employment ends

   By the employer, or by mutual agreement.

2. 2
   7 working days

   Employer notifies BPJS

   Through the online employment information system.

3. 3
   Within 6 months

   Former employee claims

   With proof of the termination and their own bank account.

4. 4
   3 working days

   BPJS checks and pays

   Into the person’s own account.

5. 5
   Up to 6 months

   Monthly payments

   60% of the last reported wage while they look for work.

For the employer, there are two things to do:

• notify BPJS of the termination within 7 working days (Permenaker 15/2021, Article 9(1))
• make sure the wage reported to BPJS is the real wage

To claim, the former employee needs proof of the termination, such as the manpower office’s receipt for the termination report or a registered mutual-termination agreement (perjanjian bersama) (PP 37/2021, Article 20(3), as amended).

The former employee then claims within 6 months of the termination (Article 40(a), as amended), and BPJS checks a complete claim and pays within 3 working days (Permenaker 15/2021, Articles 11(1) and 13(6)). Our guide to terminating employment in Indonesia covers the dismissal itself.

Enrolling staff in BPJS from the start keeps the benefit with BPJS: if an employee was never enrolled, the employer pays it itself (Article 37(1)). If a company is declared bankrupt or closes with no more than 6 months of contributions unpaid, BPJS still pays (Article 39A, inserted by PP 6/2025).

What changed in 2025

PP 6/2025 made these changes from 7 February 2025, and applies the new cash rate to the months still being paid on earlier claims (its official explanation, general part). None of them changes what the employer contributes. Our guide to employment law in Indonesia tracks the new manpower law; we will update this page if it changes JKP.

How MAM helps

Our payroll team enrols your staff with BPJS and calculates, deducts and reports the contributions each month, which is how eligible staff become JKP participants. When an employee leaves, we report the termination to BPJS for our payroll clients, and our HR consulting team prepares the termination report for the manpower office and the mutual-termination agreement.