Tax Chief Responds to Labour Calls to Scrap JHT Tax: Under Review

The Directorate General of Taxes (DJP) at the Ministry of Finance has responded to complaints from labour groups regarding the imposition of tax on Jaminan Hari Tua (JHT) old-age security benefits. The government has confirmed that the regulation is currently under review, following calls for the tax to be reconsidered.

Director General of Taxes Bimo Wijayanto stated that the review is being conducted under the direction of Minister of Finance Purbaya Yudhi Sadewa. However, he stressed that the tax is not collected when workers receive their salaries, but rather when the JHT funds are disbursed to participants.

‘As conveyed by the Minister of Finance, it is currently being reviewed. But it must be understood that it is not collected at the time of salary payment, but at the time of disbursement,’ Bimo told reporters after a press conference on Wednesday (1/7/2026).

He explained that participants with a JHT balance below Rp50 million are not subject to tax, effectively receiving a final tax rate of 0%. Meanwhile, balances of Rp50 million and above are subject to a final rate of 5%. ‘If the JHT value is less than Rp50 million, the rate is 0%. If the JHT is Rp50 million or more, the rate is 5%. This regulation has been in place since 2009,’ Bimo added.

Nevertheless, the DJP is open to evaluation should the public feel the provisions are no longer suitable for current conditions. However, the decision to change the policy remains with the Minister of Finance. ‘So if there is a dynamic that needs to be reviewed, we will follow the direction of the leadership. We only implement policy. The policy itself is the domain of the Minister of Finance,’ he stated.

Bimo also revealed that the DJP has coordinated with BPJS Ketenagakerjaan to examine the profile of JHT participants. Based on the data obtained, the majority of participants are unaffected by the tax because their balances fall below the Rp50 million threshold. ‘We coordinated with BPJS Ketenagakerjaan yesterday, and 95% of JHT balances are below Rp50 million. So they are not subject to tax. Only 5% of JHT participants are subject to the tax,’ Bimo said.

The issue of the JHT tax has returned to the spotlight after labour groups urged the government to abolish the levy. Minister of Finance Purbaya Yudhi Sadewa had previously stated that the policy would be examined further, including ensuring that any changes made would consider aspects of fairness and be well-targeted.