BPJS Employment Risk Exposure in Indonesia: Liability Calculation and Financial Impact

Executive Summary

BPJS Ketenagakerjaan obligations represent a significant financial risk for companies. Underpayment can lead to substantial liability, including administrative fines and interest. This page covers contribution parameters, underpayment scenarios, accumulated liability formulas, and exposure modeling for different company sizes.

1. Mandatory Contribution Parameters

BPJS consists of multiple programs with statutory contribution rates:

• · Old-Age Security (JHT): 3.7% employee + 3.7% employer
• · Work Accident Insurance (JKK): 0.24%–1.74% employer (based on sector risk)
• · Death Benefit (JKM): 0.3% employer
• · Pension Plan (JP): 2% employee + 3% employer

2. Example Underpayment Scenario

Assumption: 100 employees, average salary IDR 8,000,000/month, JP underpaid for 6 months.

Underpayment calculation:

JP Employee = 2% × 8,000,000 × 6 × 100 = IDR 96,000,000
JP Employer = 3% × 8,000,000 × 6 × 100 = IDR 144,000,000

Total JP underpayment = IDR 240,000,000

3. Accumulated Liability + Penalties

Include 2% administrative penalty per month:

Penalty = 240,000,000 × 12% = IDR 28,800,000

Accumulated liability = 240,000,000 + 28,800,000 = IDR 268,800,000

4. Exposure Modeling

• · 100 employees: IDR 268,800,000
• · 500 employees: IDR 1,344,000,000
• · 1000 employees: IDR 2,688,000,000

5. Implications for Valuation

Assuming annual EBITDA = IDR 15,000,000,000:

Impact for 1000 employees = 2,688,000,000 / 15,000,000,000 ≈ 17.9%

Valuation impact (EBITDA multiple 6x) = 2,688,000,000 × 6 = IDR 16,128,000,000