After a workplace accident, companies usually handle one thing: the claims for the Work Accident Insurance (JKK). Hospital costs are covered, wages during the employee's treatment are paid, and compensation is disbursed. The paperwork is closed, and the figures that reach the management report are only that.
However, that is just the tip of the iceberg. The submerged part is rarely recorded, as it never comes as a single bill.
The visible tip: what JKK covers
According to BPJS Ketenagakerjaan, the benefits of JKK for wage recipients include medical treatment according to medical indications, temporary disability benefits (100 percent of wages for the first 12 months, then 50 percent), disability benefits, death benefits, transportation cost reimbursement, and return-to-work programs. The condition is that the worker must be registered. If the report is submitted past the deadline, those benefits can turn into the company's liabilities first. The details can be found in the article on the 2 x 24 hour report.
All the above items can be recovered. The items below the surface cannot.
How large is the submerged part
Three commonly referenced measurements provide different figures:
| Source | Uncovered costs compared to covered costs |
|---|---|
| Heinrich, from thousands of insurance records in 1,500 organizations | approximately 4 : 1 |
| Accident Prevention Advisory Unit, HSE UK (publication 1999) | 8 : 1 to 36 : 1 |
| OSHA, $afety Pays program (indirect costs compared to direct costs) | 1.1 to 4.5 |
The HSE range is the widest. Its study also accounts for incidents without injuries that still result in losses, and each study defines accidents differently. The figures may not be the same, but the direction is clear: uncovered costs are always greater.
Minor injuries are actually the most expensive, compared to their claims
OSHA uses a sliding scale. The smaller the direct costs, the larger the multiplier.
| Direct costs (USD) | Indirect cost multiplier |
|---|---|
| 0 to 2,999 | 4.5 |
| 3,000 to 4,999 | 1.6 |
| 5,000 to 9,999 | 1.2 |
| 10,000 and above | 1.1 |
A scratched finger or a sprained wrist, which have small claims, carry the longest tail of costs compared to their claims. Such incidents are often considered resolved.
OSHA itself reminds that this multiplier is a general estimate from limited research, and the figures vary by company. Therefore, do not use this table to prepare a budget. Use it to determine which incidents are worth calculating seriously.
Calculating sheet for the submerged part
The following items are compiled from OSHA and RoSPA details. Fill in with your company's data, not guesses.
| Item | How to calculate |
|---|---|
| Teams that stopped working | number of people x hours stopped x wage per hour |
| Replacement overtime | overtime hours x overtime wage per hour (overtime calculator) |
| Investigation and administration | supervisor hours, K3 officers, and staff x wage per hour |
| Replacement workers | recruitment costs + training hours + lost productivity during training |
| Damage | repair of tools, damaged materials, cleaning |
| Delays | penalties for delays or value of lost orders |
There are items that OSHA intentionally did not include in its estimates: fines and legal costs, third-party liability, worker suffering, and tarnished reputation. These items are difficult to quantify, but that does not mean they are zero.
Why the figures need to reach the management table
The K3 budget is decided based on recorded figures. If the only recorded item is the JKK claim, prevention always appears more expensive than the accident itself. A calculation sheet per incident, filled out after the investigation is complete, is sufficient to shift that comparison.
This topic is discussed by Johnny Harto Putro in the K3 Oil and Gas and Mining class. If you prefer to see his explanation directly, there is a clip available.
Sources
- Individual Injury Estimator: Background of Cost Estimates, Occupational Safety and Health Administration, U.S. Department of Labor.
- Assessing risk in engineering, work and life, section 2.4 After the accident, OpenLearn, The Open University.
- The Cost of Accidents and Ill-health, Royal Society for the Prevention of Accidents (RoSPA).
- Here are the Complete Benefits of Work Accident Insurance (JKK) for Wage Recipients (PU), BPJS Ketenagakerjaan, January 27, 2026.