Many employers cheat on worker insurance<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
State-owned social security company PT Jamsostek is encouraging
\nemployees to check their participation in the social security
\nschemes as many employers were found to be dishonest in
\nregistering their employees with the mandatory insurance
\nprograms.<\/p>\n
\"Employees have the right to know whether they are registered
\nwith all the four insurance schemes and whether their premiums
\npaid by their employers to Jamsostek are based on their actual
\nmonthly salaries,\" Jamsostek president Achmad Djunaidi said.<\/p>\n
Djunaidi made the call when he paid on Thursday compensation
\nfor five workers of PT Nestle Indonesia who were killed in a
\nvehicular accident on the Jakarta-Bogor toll road last month.<\/p>\n
He revealed that 50 percent, or more than 50,000, of 108,000
\ncompanies participating in the social security program, have
\nregistered only some of their workers and reported their actual
\nmonthly salaries to Jamsostek, in an attempt to reduce the
\nfinancial burden of joining the programs.<\/p>\n
\"Workers who are not registered with Jamsostek gain no
\ninsurance benefits when they fall sick, experience work-related
\naccidents or enter their mandatory retirement age of 60.<\/p>\n
\"The smaller the premium workers and their employers pay to
\nthe insurance schemes, the less benefit they will gain,\" he said.<\/p>\n
According to Junaidi, workers should file complaints about
\ntheir management to the Ministry of Manpower and Transmigration
\nif their premium is not paid in line with their monthly salaries
\nas is required by law.<\/p>\n
Law No. 3\/1992 on social security programs stipulates that all
\ncompanies employing ten workers or more are obliged to
\nparticipate in the social security programs which comprise of a
\nhealth care scheme, occupational accident scheme, compensation
\nfor next of kin in case of death and a pension scheme.<\/p>\n
Of the 13.7 percent premium to be paid for the four schemes,
\nworkers are obliged to pay 2 percent while the remaining 11.7
\npercent is covered by their employers.<\/p>\n
Djunaidi reiterated that the benefits workers gain, depends on
\nthe amount of premium they pay.<\/p>\n
\"Many workers are unaware of the benefits of the basic
\ninsurance schemes because they do not pay their premium directly
\nto Jamsostek,\" he said.<\/p>\n
He cited as an example that the families of two workers of the
\nSari Club who were killed in the Oct. 12, 2002 bombing in
\nDenpasar, Bali gained only around Rp 9 million (US$1,097) in
\ncompensation from Jamsostek because their employer reported to
\nJamsostek that their monthly salary was only Rp 170,000.<\/p>\n
\"The manpower and transmigration office in Denpasar should
\ntake action against the employer because the report was
\ncompletely inaccurate since the minimum wage in the province last
\nyear was Rp 341,000.<\/p>\n
The family of the director of the North Sumatra Development
\nBank who was killed in a collision in Jakarta last year received
\ncompensation amounting to only Rp 40 million because his company
\nreported to Jamsostek that his monthly salary was only Rp 1
\nmillion.<\/p>\n
\"But, it's impossible that a bank president would be paid only
\nRp 1 million per month,\" he said, explaining that such deceit has
\naffected recipients of the insurance program.<\/p>\n
According to the law, a worker who is killed in a work-related
\naccident has the right to forty-times or 4,000 percent of his or
\nher monthly salary which is paid to his\/her next of kin.<\/p>\n
Ira Yovita, one of Nestle's workers killed in the traffic
\naccident gained more than Rp 181 million in compensation and
\npension funds which was paid to her parents.<\/p>\n
Ira, who had been employed for seven months in the foreign
\ncompany received a monthly salary of Rp 5 million, which was
\nreported transparently to Jamsostek by Nestle.<\/p>\n
Jamsostek's operation director Djoko Sungkono said his company
\nwas still promoting the social security law to improve employers'
\nawareness of the importance of insurance coverage for their
\nemployees.<\/p>\n
\"Besides, the government through the manpower and
\ntransmigration minister should start enforcing the law to help
\nprovide protection for Indonesian workers both at home and
\noverseas,\" he said.<\/p>\n
Djoko added that the House of Representatives would likely
\nrevise the law to allow Jamsostek to appoint special staff to
\nenforce the law as is done in many other countries.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/many-employers-cheat-on-worker-insurance-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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