Rules and Simulation of Tax on BPJS Employment JHT Claims

The taxation of Old Age Security (JHT) claims from BPJS Ketenagakerjaan has recently come under public scrutiny, with many deeming it detrimental to workers and contrary to the principles of justice and social protection. However, this tax is not a new policy, as the provisions have been in place for over a decade. The legal basis for taxing JHT is Government Regulation (PP) Number 68 of 2009 concerning Income Tax (PPh) Rates on Income in the Form of Severance Pay, Pension Benefits, Old Age Security, and Old Age Security Paid at Once. Additionally, the progressive tax rates under Article 17 of the Income Tax Law, as harmonised by the Law on Harmonisation of Tax Regulations (UU HPP), apply to personal taxpayers. The tax scheme depends on the method and timing of the disbursement. If the JHT is paid out in a lump sum, it is subject to a final PPh 21. The first Rp 50 million is taxed at 0%, and the amount exceeding Rp 50 million is taxed at a final rate of 5%. For example, a JHT value of Rp 45 million would incur zero tax, while a claim of Rp 60 million would be taxed 5% on the excess Rp 10 million, resulting in a tax of Rp 500,000. If the JHT is disbursed in stages and the subsequent disbursement occurs more than two calendar years after the first, the payment is no longer subject to the final tax but to the progressive rates of Article 17. For instance, on a total JHT value of Rp 100 million, the first Rp 60 million is taxed at 5% (Rp 3 million) and the remaining Rp 40 million is taxed at 15% (Rp 6 million), resulting in a total tax of Rp 9 million. For a JHT value of Rp 300 million, the tax calculation would be 5% on the first Rp 60 million, 15% on the next Rp 190 million, and 25% on the remaining Rp 50 million, leading to a total tax of Rp 44 million.