Purbaya to Request BPJS Data on 95% Tax-Free JHT Disbursements

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa will request complete data from the Social Security Administering Body (BPJS) Ketenagakerjaan regarding claims that approximately 95.45 per cent of Old Age Security (JHT) withdrawals are subject to a 0 per cent tax rate.

The 0 per cent final income tax (PPh) facility is granted for JHT withdrawals with an amount of up to Rp50 million.

This step is a follow-up to a meeting with the Special Advisor to the President for Labour and Worker Welfare, Said Iqbal.

“From what I can see, 95 per cent of the existing data is already covered by the 0 per cent tax rate. However, Mr Said stated that the data is not very accurate, so I will request more complete data from BPJS Ketenagakerjaan to examine the situation,” Purbaya said in Jakarta on Wednesday.

During the meeting, Said Iqbal proposed an evaluation of the taxation on JHT, a review of the progressive tax mechanism for workers who withdraw JHT multiple times due to termination of employment (PHK), an adjustment to the threshold for JHT benefits subject to tax, as well as changes to the tax treatment of pension benefits, religious holiday allowances (THR), and severance pay.

Responding to these proposals, the Finance Minister emphasised that he would study them comprehensively before making any decisions.

“We do not want to make things more difficult for the public. We will maintain what is already in place, but we must also be careful in calculating the impact of policies on state revenue and ensuring that the benefits are truly felt by the people in need,” he said.