Is JHT Disbursement Taxed? Here's What Purbaya Says

The issue of Income Tax (PPh) being imposed on the disbursement of Old Age Security (JHT) funds from BPJS Ketenagakerjaan has been widely discussed on social media. Minister of Finance Purbaya Yudhi Sadewa has now spoken out on the matter. Purbaya stated that he will coordinate with the Directorate General of Taxes (DJP) to review the regulation concerning the imposition of income tax on JHT disbursements. “I will check again with the Director General of Taxes. I will look again at what form it takes,” he said at the Ministry of Finance, Jakarta, Friday (26/6/2026). The imposition of income tax on JHT benefits is not actually a new policy. The provision has been regulated through Government Regulation (PP) Number 68 of 2009 and detailed in Minister of Finance Regulation (PMK) Number 16 of 2010. “The tax on JHT itself is not something new. This rule has long been regulated in PP Number 68 of 2009 and PMK Number 16 of 2010,” explained the official Instagram account @ditjenpajakri. Under these regulations, JHT benefits paid in a lump sum to participants can be subject to Article 21 Income Tax because they are considered income. Additionally, old age benefits are not included in the taxable income components deducted each month. There are two categories of tax rates on JHT. First, disbursements with a maximum period of two years are subject to final Article 21 Income Tax with a 0% rate for amounts up to Rp 50 million, and disbursements above Rp 50 million are subject to a final rate of 5%. The second category applies if the two-year period is exceeded, in which case the application of Article 21 Income Tax is no longer final, meaning progressive rates under Article 17 of the Income Tax Law apply. The progressive tax rates are as follows: up to Rp 60 million: 5%; more than Rp 60 million to Rp 250 million: 15%; more than Rp 250 million to Rp 500 million: 25%; more than Rp 500 million to Rp 5 billion: 30%; and more than Rp 5 billion: 35%.