New requirements regulating old-age benefits, or Jaminan Hari Tua (JHT), for both Indonesian citizens and foreigners, have been released by the Manpower Ministry through regulation no. 4 of 2022 which was promulgated on Tuesday 26th April 2022.
“The benefits of JHT are paid in cash to workers when they reach retirement age as stipulated in work agreements, company regulations, or collective work agreements, by the time workers reach the age of 56 years,” reads Article 6 of the regulation.
JHT benefits can be paid to participants who are beneficiaries of JHT due to the expiration of the term in the work agreement or when participants are not in receipt of wages because they stop working. Specifically for foreigners, payment of JHT for participants who leave Indonesia forever will be paid to participants who are foreign nationals, before or after the participant leaves Indonesia for good.
For participants who resign, the JHT can be paid in cash and at the same time after passing the waiting period of one month starting from the issuance of the statement of resignation from the employer.
“Submissions for payment of JHT benefits for participants who resign must attach a BPJS Employment card, identity card, or other proof of identity and a statement of resignation from the employer where the participant works,” reads Article 9.
Participants affected by termination of employment can be paid in cash and at the same time after passing the waiting period of one month from the date of termination of employment.
The application for payment of the start of JHT benefits for participants who are laid off is the same as JHT participants who resign from their jobs. The difference is only if the submission of payment to the participant who resigns attaches a letter of resignation, for the participant who has been laid off must include a receipt of the termination report.
Additional important factors revolve around whether participants who experience permanent total disability can receive payments before reaching retirement age and deceased participants will have their JHT paid to their heirs.