95 Percent of JHT Disbursements Claimed Tax-Free, Purbaya to Request Data from BPJS Ketenagakerjaan

Finance Minister Purbaya Yudhi Sadewa will request complete data from BPJS Ketenagakerjaan regarding claims that approximately 95.45 percent of Old Age Security (JHT) disbursements are already subject to a zero percent tax rate. The zero percent final income tax (PPh) rate facility applies to JHT disbursements up to IDR 50 million.

This step follows a meeting with the Presidential Special Advisor on Employment and Labour Welfare, Said Iqbal. “If I look at it, 95 percent of the data is already covered by the zero percent tax. But Mr. Said said the data is not entirely accurate, so I will request more complete data from BPJS Ketenagakerjaan to see what the actual figures are,” Purbaya stated in Senayan, Jakarta, on Wednesday.

During the meeting, Said Iqbal proposed an evaluation of the tax imposition on JHT benefits. The government is also reviewing the progressive tax mechanism for workers who make multiple JHT withdrawals due to layoffs (PHK).

Purbaya emphasised that the government would study the proposals comprehensively before making any decisions. “We do not want to make things more difficult for the public. We will maintain what is already running, but we must also be careful in calculating the policy’s impact on state revenue and ensure the benefits are truly felt by those in need,” he said. The government will also examine the possibility of adjusting tax provisions that still refer to old regulations to align them with the current social security system and labour market dynamics.