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Including Tapera, Here are 8 Monthly Deductions from Private Employees' Salaries

Including Tapera, Here are 8 Monthly Deductions from Private Employees' Salaries

Dream - Recently, President Joko Widodo has signed Government Regulation (PP) Number 21 of 2024 which mandates all workers or employees with a minimum wage equivalent to UMR to become participants of Tapera (People's Housing Savings).

Including Tapera, Here are 8 Deductions from Private Employees' Salaries Every Month

As a result, employees are forced to set aside a portion of their salary to pay for Tapera contributions. This obligation adds to the long list of deductions from workers' salaries in Indonesia. It should be noted that salary deductions, including contributions and insurance for these employees, reach up to eight types every month. What are they? Let's dissect each component of salary deductions imposed on employees in this Dream article!

1. PPh21

The first deduction imposed on employees is Income Tax (PPh21). PPh is a tax imposed on taxpayers in the form of individuals, entities, permanent establishments, and undivided inheritances, on income obtained or acquired. It can be said that PPh is a tax on income that has been received, including private employees or individuals subject to tax. Although in reality not all workers are required to pay this income tax.

In Law Number 7 of 2021 regarding Tax Regulation Harmonization (HPP), which is further clarified in Government Regulation (PP) Number 55 of 2022, employees who are required to pay PPh21 are those who have income above the Taxable Income Threshold (PKP), which is Rp 60 million/year or Rp 5 million/month.

2. Health BPJS

The amount of BPJS Kesehatan contribution is determined based on the type of membership of each participant in the JKN program. This refers to Presidential Regulation Number 64 of 2020 concerning the Second Amendment to Presidential Regulation Number 82 of 2018 concerning Health Insurance. The amount of BPJS Kesehatan contribution for participants who are employees receiving wages (PPU) in state-owned enterprises, regional-owned enterprises, and private companies is 5 percent of monthly salary. This contribution is made with the provision that 4 percent is paid by the employer and 1 percent is paid by the participant.

3. BPJS Employment JHT

Every employee who becomes a participant of BPJS Ketenagakerjaan must be willing to have their salary deducted for the old age insurance (Jaminan Hari Tua or JHT) service fee. The fee charged to participants is 5.7 percent, with a distribution of 3.7 percent paid by the employer and 2 percent paid by the participant every month.

               

4. Employment Social Security Agency Retirement Guarantee

BPJS Employment also deducts employees' salaries for the Pension Guarantee (JP) service by 3 percent each month. Employers pay 2 percent, and the remainder is paid by the employees.

4. Employment Social Security Agency Retirement Guarantee

5. Employment Social Security Agency (BPJS Ketenagakerjaan) Occupational Risks and Death Benefits

There are other benefits for participants of BPJS Ketenagakerjaan, namely Work Accident Insurance (JKK) and Death Insurance. The amount of the premium is adjusted according to the level of risk, starting from very low risk at 0.24 percent, low risk at 0.54 percent, moderate risk at 0.89 percent, high risk at 1.27 percent, and very high risk at 1.74 percent. The premium is paid from the employees' monthly salary. Meanwhile, Death Insurance is paid at 0.3 percent per month.

6. Insurance Deductions

Besides taxes and BPJS, private employees also often receive other deductions, such as insurance premiums. Usually, these deductions exist because the company they work for has a partnership contract with a private insurance company. There are many types of insurance deductions that employees may receive. Some of them include health insurance, pension guarantees, old-age guarantees, work accident insurance, and death guarantees.

Including Tapera, Here are 8 Deductions from Private Employees' Salaries Every Month

The amount of the premium also varies depending on the company's policy or insurance company. Usually, this premium is divided between employees and the company according to a certain percentage.

7. Other Discounts

Some companies record other deductions in employees' salary slips, with different policies. Employees should ask for details of these deductions, which may include deductions for absences without leave, coming late, or leaving early. The amount of the deduction depends on the company's policy. There is also a deduction for cooperative members who borrow money from the office cooperative. This deduction applies until the debt is paid off. Many employees prefer cooperative loans because the interest is lower compared to banks.

8. Tapera

Not only that, the Government will still deduct the salaries of employees for the People's Housing Savings (Tapera). Employees who have a minimum wage equivalent to UMR must pay a Tapera contribution of 3%. Employees have to bear 2.5% taken from their monthly salaries. Tapera is a savings fund collected by participants periodically over a certain period of time. This fund can only be used for housing financing or returned with its earnings after the membership ends.

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