Want to Withdraw Your BPJS Employment JHT? Here Are the Rules
Before withdrawing your Old Age Security (JHT) from BPJS Ketenagakerjaan, it is important to understand the applicable tax rules. The tax amount is determined by the timing of the withdrawal and the total JHT balance. Based on information from the Directorate General of Taxes of the Republic of Indonesia and Indonesia Baik, here are the details.
JHT Withdrawal Upon Reaching Retirement Age (Up to 2 Years)
A final income tax (PPh Final) of 0% applies to withdrawals of up to Rp50 million.
For participants with a JHT balance exceeding Rp50 million, the excess amount is subject to a final income tax rate of 5%.
Example:
An employee has a JHT balance of Rp130 million upon reaching retirement age and has never made a partial withdrawal of JHT benefits while still actively working. The final income tax rates of 0% and 5% will be applied to the entire JHT benefit withdrawn. The calculation is as follows:
JHT Balance: Rp130 million
Income tax payable:
Balance up to Rp50 million → 0%
Remaining balance of Rp80 million → 5%
Breakdown:
0% x Rp50,000,000 = Rp0
5% x Rp80,000,000 = Rp4,000,000
Total final income tax deducted = Rp4,000,000
Partial JHT Withdrawal While Still Employed
A partial withdrawal of JHT while the employee is still actively working is subject to the rate under Article 17 of the Income Tax Law, which is 5%.
The JHT balance that can be withdrawn is also limited to a maximum of 10%.
Example:
An employee with more than 10 years of service withdraws a portion of their JHT in January 2024 amounting to Rp10 million, then upon reaching retirement age in May 2026 withdraws the remaining JHT balance of Rp120 million. The calculation is as follows:
While Still Actively Working
Partial JHT withdrawal in January 2024 is subject to the Article 17 Income Tax Law rate.
5% x Rp10 million = Rp500,000 (non-final)
Upon Entering Retirement Age
Withdrawal of remaining JHT in May 2026, Article 21 Income Tax calculation:
0% x Rp50 million = Rp0
5% x Rp70 million = Rp3.5 million (final)
The total tax levied from the two JHT withdrawals is Rp4 million.
JHT Withdrawal Upon Reaching Retirement Age After 2 Years
If the JHT benefit is withdrawn in the third year and subsequent years after retirement, the application of Article 21 Income Tax is no longer final, meaning progressive rates under Article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 Rp60 million → 5%
Over Rp60 million to Rp250 million → 15%
Over Rp250 million to Rp500 million → 25%
Over Rp500 million to Rp5 billion → 30%
Over Rp5 billion → 35%
JHT Withdrawal Below Rp50 Million
Example:
A participant has never made a partial withdrawal of JHT benefits while still actively working and, upon reaching retirement age in May 2026, withdraws their entire JHT balance of Rp40 million. The calculation is as follows:
Upon Entering Retirement Age
JHT withdrawal in May 2026, Article 21 Income Tax calculation:
0% x Rp40 million = Rp0
This participant is not subject to tax on the withdrawal of their entire JHT because the amount is still below Rp50 million.