Workers ask for pension benefits to be increased to 75% of their wages
Reporter: Fahriyadi | Editor: Uji Agung Santosa
JAKARTA. Labor asked the government to increase pension benefits in Employment Social Security Administration (BPJS) from 25% -30% to 75% of the last wage. Private workers’ pension benefits of 25% -30% of the last wage are considered unfit and must be increased.
Member of the National Tripartite Cooperation Institute (LKS) from the labor element, Muhammad Rusdi urged that the pension benefit be 75% of the last wage started running on 1 July 2015 when BPJS Ketenagakerjaan was effective.
Because according to the mandate of Law (UU) Number 40 of 2004 concerning the National Social Security System (SJSN) and Law Number 24 of 2011 concerning BPJS, pension security is implemented to maintain a decent degree of life when participants lose their jobs due to retirement age or experience permanent disability.
The BPJS Ketenagakerjaan pension program is based on savings and social insurance. For participants who have paid contributions for approximately 15 years, the worker or their family will receive periodic benefits every month up to a specified limit. If the employee’s contribution period is less than 15 years, the worker will only get the accumulated contributions but will not receive periodic benefits every month.
According to Rusdi, the parameters of decent living as stipulated in the calculation of Decent Living Needs (KHL) must be able to meet the living needs of workers and their families such as food, drink, clothing, health, housing, transportation and education. The amount of pension benefit 75% of the last wage per month is the same as the percentage received by Civil Servants (PNS), TNI / Polri and workers in BUMN.
To get a benefit of around 75% per month, the pension security contribution is at least around 18% of the last wage with details, 3% contribution workers, 12% contributing employers and 3% contribution from the government. With the same amount, there is no discrimination in providing pension benefits because in fact private workers have also contributed every month in paying taxes.
Members of the National Tripartite LKS, Sahat Butar Butar added, in several BUMN and private companies that have been implementing voluntary pension insurance programs, the average contribution is in the range of 13% -18%.
In several ASEAN countries, such as Vietnam, the workforce contribution is 20%, with 7% of workers and 13% of employers. Whereas in China the fee is 20% which is fully paid by entrepreneurs. In Malaysia it is 24% with 11% of workers and 13% of employers, and in Singapore with 20% of workers while employers are 16%. “The fees from entrepreneurs are on average above 13%,” he said.
Sahat rejected the proposal from the government in the draft Government Regulation (RPP) Pension Security, only proposing a contribution of 8% with details of 3% workers and 5% employers with the amount of periodic benefits that pensioners receive is only 25% of the last salary.
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