Retirement Age in Indonesia: Pension, JHT and Employer Rules
The law leaves the retirement age in Indonesia to your own employment documents. See the state pension and old-age savings ages, and what to write down.
References (7)
- UU No. 13 Tahun 2003 on Manpower, as amended by UU No. 6 Tahun 2023, Article 81. Point 41 inserts Article 151A: no notification is needed where the employee reaches the retirement age set in the employment contract, company regulations or collective agreement. Point 45 inserts Article 154A(1)(n): employment may end because the employee reaches retirement age. Point 59 deletes Article 167.
- PP No. 35 Tahun 2021 on fixed-term contracts, outsourcing, working time and termination, in force 2 February 2021. Article 36(n) (retirement as a ground) and Article 56 (what a retiring employee is owed).
- PP No. 45 Tahun 2015 on the pension programme, in force 1 July 2015 (Article 38). Article 1 point 15 (pension age), Article 15(1) to (4) (the schedule and deferral), Article 19(1) (15 years for a monthly pension), Article 24 (lump sum below 15 years), Articles 10(3) and 11(2) (membership between jobs).
- PP No. 46 Tahun 2015 on old-age savings, as amended by PP No. 60 Tahun 2015. Article 4(2)(c) (foreign workers of at least 6 months), Article 22(1) (age 56) and Article 29 (deferral while still working).
- Permenaker No. 4 Tahun 2022 on old-age savings payment, in force 26 April 2022. Article 6(1) (the written retirement age, or 56), Article 12 (a foreign participant leaving Indonesia for good) and Article 18(4) (payment within 5 working days of a complete claim).
- PP No. 37 Tahun 2021 on the job-loss programme, as amended by PP No. 6 Tahun 2025. Article 20(1): the benefit is not paid where employment ends by retirement.
- UU No. 4 Tahun 2023 on the financial sector, Article 146(1): a private pension fund’s normal retirement age is first set at no lower than 55.
For a private employer, the Manpower Law (Undang-Undang, UU) leaves the retirement age in Indonesia to the employment contract, company regulations or collective agreement (UU 13/2003, Article 151A(c), inserted by UU 6/2023).
Two other ages matter: when the state pension (JP, Jaminan Pensiun) can start, and when old-age savings (JHT, Jaminan Hari Tua) can be paid. Both are run by BPJS (Badan Penyelenggara Jaminan Sosial) Ketenagakerjaan, the employment social security agency, whose contributions are set out in our guide to BPJS in Indonesia.
| Your age | JP pension | JHT savings | |
|---|---|---|---|
| Set by | Your contract, company regulations or collective agreement | Government regulation | Government regulation |
| Age | The law leaves it to you | 59 from 1 Jan 2025; 60 from 1 Jan 2028 (both counted from the rule) | Your written retirement age, or 56 |
| Decides | When employment can end; no notification if the age is in writing | When the monthly pension can start | When the savings are paid at retirement |
| Paid | Severance, long-service pay and compensation of rights | Monthly with 15 years of contributions; a lump sum if pension age comes first | Lump sum within 5 working days of a complete claim |
Set the retirement age in writing
Writing the age down does two things
When the employee reaches the age written in the contract, company regulations or collective agreement, no notification is needed (UU 13/2003, Article 151A(c)). It is also an age at which BPJS pays their old-age savings, alongside 56 (Manpower Ministry regulation, Permenaker, 4/2022, Article 6(1)(a) and (b)).
Employment can end when the employee reaches retirement age (UU 13/2003, Article 154A(1)(n); government regulation (Peraturan Pemerintah, PP) 35/2021, Article 36(n)). The employee is then owed severance, long-service pay and compensation of rights (PP 35/2021, Article 56).
Our guide to terminating employment in Indonesia sets out the amounts. Article 167 of the Manpower Law was deleted by UU 6/2023 (Article 81, point 59). The job-loss benefit (JKP) is not paid on retirement (PP 37/2021, Article 20(1)).
If your company runs or joins a private pension fund, that fund’s normal retirement age is first set at no lower than 55 (UU 4/2023, Article 146(1)). Our guide to employment law in Indonesia tracks the new manpower law; we will update this page if it changes the retirement rules.
The state pension age (JP)
The pension age is the age at which the JP pension can start (PP 45/2015, Article 1 point 15). The regulation set it at 56 when the scheme began, and at 57 from 1 January 2019. After that it adds one year every 3 years until it reaches 65 (Article 15(1) to (3)). The later dates below are that arithmetic, counted from 1 January 2019.
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56
When the scheme began.
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57
The first step, in the text.
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59
In force now, counted.
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60
The next step, counted.
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65
The final age, counted.
- An employee still working at pension age can take the pension then, or when they stop working, up to 3 years after pension age (Article 15(4)).
- A monthly pension needs at least 15 years of contributions (Article 19(1)).
- With fewer when pension age comes, the employee receives all their contributions plus returns as a lump sum (Article 24).
- Someone who changes jobs before pension age stays a member, and the new employer continues the membership (Articles 10(3) and 11(2)).
Old-age savings (JHT)
BPJS pays JHT in one sum at the retirement age set in the contract, company regulations or collective agreement, or at 56 (Permenaker 4/2022, Article 6(1)). An employee still working at 56 can leave the savings in place, keep contributing and claim when they stop work (PP 46/2015, Article 29). BPJS pays within 5 working days of a complete claim (Permenaker 4/2022, Article 18(4)).
Tax on a JHT or pension lump sum is covered in our guide to severance pay tax in Indonesia.
Foreign employees
A foreign national working in Indonesia for at least 6 months is a JHT participant (PP 46/2015, Article 4(2)(c)). On leaving Indonesia for good, they can claim it before or after they go (Permenaker 4/2022, Article 12). The pension scheme is the one PP 45/2015 leaves unstated for a foreign worker. MAM registers foreign employees for it alongside the other mandatory BPJS programmes.
A foreign national retiring to Indonesia is a separate, immigration matter, covered in our guide to the golden visa.
How MAM helps
Check that each contract, or your company regulations, names a retirement age. Our HR consulting team drafts it in and works out what a retiring employee is owed. Our payroll team pays the final settlement, and we help the employee with their BPJS claim.