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WORKING ABROAD / DEC. 27, 2012
version 22, draft 22

Social Security System of Indonesia

indonesia

Indonesia is considered to be one of the growing and fast developing economies of the world. With 33 provinces and an estimated 238 million population, Indonesia is the 4 most populated country in the world. The country’s capital is Jakarta, which is also the largest and most densely populated city in the country.

The following is a brief outline of the country’s social security system:

 

According to the 1992 law governing employee social security, individuals aged above 55 years old are entitled to the provident fund. Individuals who wish to continue working past the age of retirement are able to defer the time to claim the provident fund. The fund is sourced by contributions made from the employer as well as the employee – over the years of employment.

 

The social insurance system is the program that governs maternity benefits in Indonesia. In order to qualify for the maternity benefits, individuals must be employed as the fund is sourced from contributions of the employer and employee. Employees are entitled to maternity leave for a period of 3 months, with the time being divided before and after the birth.

In addition to this, female employees are paid full pay for their time off. Male employees whose wife has given birth are allowed to take 2 days leave that is fully paid. New mothers who are nursing their baby are able to benefit from flexible timing, provided that they arrange it with their employer.

 

In the event that an employee falls sick and requires time off from work, they are entitled to the following wages:

  • First 4 months – 100% salary

  • Second 4 months – 75% salary

  • Third 4 months – 50% salary

  • After a year – 25% salary until termination of employment

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