Here's a Simulation of How to Calculate Tax on JHT Disbursement

In accordance with applicable regulations, the disbursement of Old Age Security (JHT) benefits from BPJS Ketenagakerjaan is subject to income tax, or PPh 21. This is based on Government Regulation Number 68 of 2009 and Minister of Finance Regulation Number 16 of 2010. The tax is not deducted monthly from an employee’s salary, but is only applied at the time the JHT funds are disbursed. There are two tax rate categories for JHT income. First, for disbursements made within a maximum period of two years, a final PPh 21 rate is applied: 0% for payouts up to Rp50 million, and 5% for the portion of the payout exceeding Rp50 million. Second, if the disbursement occurs after two years, the PPh 21 is non-final and uses the progressive tax rates under Article 17 of the Income Tax Law. These progressive rates are: 5% for taxable income up to Rp50 million; 15% for taxable income above Rp50 million to Rp250 million; 25% for taxable income above Rp250 million to Rp500 million; and 30% for taxable income above Rp500 million. As a simulation, if a participant with a 12-year membership period claims a JHT balance of Rp150 million, the taxable amount is Rp100 million after deducting the Rp50 million threshold. The tax payable is 5% of Rp100 million, which equals Rp5 million. Therefore, the net amount received by the participant is Rp145 million.