Wage Structure and Scale For Indonesian EmployeesAugust 7, 2017
Employer Sanctions for not registering BPJS Health and Manpower
Recently, the Ministry of Manpower issued the Minister of Manpower Regulation number 4 of 2018 on Procedures for the Imposition and Revocation of Administrative Sanctions in the Form of Certain Public-Service Access Restrictions for Employers Other than State Officials (Regulation 4/2018). In this column we will discuss the sanctions for employers that do not register their employees to BPJS.
Type of Violations by Employers
Administrative Sanctions in the Form of Certain Public-Service Access Restrictions applied to employers who violate the provisions of:
- Employer’s obligation to register employees to the BPJS program;
- Employer’s obligation to report and pay social security contributions;
- Employer’s obligation to submit a report on the change of membership data of any of its employees; and / or
- Employer’s obligation to engage its employees in the Old Age Insurance Program.
Type of Administrative Sanctions
This type of administrative sanction consists of:
- Written warning: The first warning letter will give employers 10 business days to fulfill its obligations to register its employees to BPJS. If after 10 business days the employer still did not fulfill its obligations, a second warning letter will be issued, providing employers another 10 business days to fulfill their obligations.
- Penalties: if the employers within the provided deadline in the second warning letter did not comply to the requests, penalties may be imposed on the employer
- Restriction of access to certain public services: In case the employer fails to pay the penalties, then the employer may be subjected to restriction of access to certain public services.
Administrative sanctions can be implemented on request of BPJS Health or Employment or through a recommendation from the manpower supervisory agency.
Revocation of Administrative Sanctions
Administrative sanctions in the form of certain public-service access restrictions for employers can be revoked if the employer has performed its obligations in accordance with the applicable laws and regulation.