Severance pay is provided by the employer. Job Loss Guarantee (JKP) is paid through BPJS Ketenagakerjaan, and both are calculated separately. Many workers affected by layoffs only learn about JKP when the claim deadline is nearly over, or they realize that the reason for their termination disqualifies them from that right. Here are the regulations in effect as of November 2026.
Current Legal Basis
Law No. 27 of 2026 on Employment Protection, enacted on October 28, 2026, regulates JKP in Articles 157 to 162: employers are required to include their workers, with benefits including cash, access to labor market information, and job training, while the details will be delegated to Government Regulations. Until a new Government Regulation is issued, Article 310 maintains the previous implementing regulations as long as they do not conflict. Therefore, the details are still found in Government Regulation No. 37 of 2021 as amended by Government Regulation No. 6 of 2025 (enacted on February 7, 2025).
How Much is Received
Article 21 of Government Regulation No. 6 of 2025: 60 percent of the monthly wage, for a maximum of 6 months. The wage used is the last wage reported by the employer to BPJS Ketenagakerjaan, with an upper limit of Rp5,000,000. Before 2025, the amounts were 45 percent for the first three months and 25 percent for the next three months.
| Last reported wage | Calculation basis | Monthly benefit | Total for 6 months |
|---|---|---|---|
| Rp3,500,000 | Rp3,500,000 | Rp2,100,000 | Rp12,600,000 |
| Rp5,000,000 | Rp5,000,000 | Rp3,000,000 | Rp18,000,000 |
| Rp9,000,000 | Rp5,000,000 | Rp3,000,000 | Rp18,000,000 |
Rp3,000,000 per month is the highest limit, not the lowest. Also note the word "reported": if the wage reported to BPJS is lower than the actual wage, the benefits will also be reduced.
Who is Eligible
- Indonesian citizens, under 54 years old at the time of registration, and have an employment relationship with the employer (Article 4 paragraph 2).
- Participating in other programs: in large and medium enterprises, participants of JKK, JHT, JP, and JKM and registered in JKN; in micro and small enterprises, at least JKK, JHT, and JKM and registered in JKN (Article 4 paragraph 3).
- Minimum contribution period of 12 months within 24 calendar months before termination (Article 19 paragraph 3). According to the Explanation of Government Regulation No. 6 of 2025, the 12 months can be accumulated from several companies. The old requirement of "6 consecutive months" has been removed.
- Willing to work again (Article 19 paragraph 2).
Reasons for Termination that Disqualify Rights
Article 20 paragraph 1 excludes termination due to resignation, total permanent disability, retirement, or death. For contract workers (PKWT), Article 20 paragraph 2 only provides JKP if the termination is carried out by the employer before the contract period ends. Contracts that are completed according to their dates do not provide JKP, and the official BPJS Ketenagakerjaan website explicitly mentions this case. The old contract limits according to the new law are discussed in the article PKWT that changed to PKWTT.
Deadlines and Proof of Termination
Claims must be submitted no later than 6 months after termination (Article 40, previously 3 months). Rights are also lost if the worker has already found new employment. Termination is proven with one of the following documents (Article 20 paragraph 3):
- Proof of termination received by the worker, along with a receipt of the termination report from the Ministry of Manpower or the provincial or district/city manpower office.
- Collective agreement, along with the registration deed in the industrial relations court or a receipt of the termination report from the aforementioned agency.
- Excerpt or copy of the decision of the industrial relations court that has permanent legal force.
Termination that is only communicated verbally complicates claims. Request a letter, and ask whether the termination has been reported to the agency.
If the Employer Delays Contributions or Does Not Register
- Delays in JKK contributions for up to 3 consecutive months: BPJS Ketenagakerjaan will still pay benefits, and the employer is required to settle the arrears (Article 39).
- Delays of more than 3 months: the employer must pay benefits first, and can only request reimbursement from BPJS after settling the arrears and penalties (Article 39).
- Bankrupt or closed companies with arrears of up to 6 months: benefits will still be paid by BPJS, while the employer's obligation to settle the arrears remains (Article 39A, newly in Government Regulation No. 6 of 2025).
- Workers never included: the employer must pay the cash benefits in full along with job training, except for micro-enterprise employers (Article 37 of Government Regulation No. 37 of 2021).
Two Final Notes
JKP contributions are 0.36 percent of the monthly wage, consisting of 0.22 percent paid by the Central Government and 0.14 percent from the reallocation of JKK contributions (Article 11). There are no additional deductions from workers' salaries for this program. Severance rights are still calculated independently based on the reason for termination and length of service; details are available in the article severance table and multiplier for termination reasons.
Sources
- Government of the Republic of Indonesia, Government Regulation No. 6 of 2025 on Amendments to Government Regulation No. 37 of 2021 on the Implementation of the Job Loss Guarantee Program (text and explanation), JDIH Kemenkeu, Articles 4, 11, 19, 20, 21, 39, 39A, 40
- Government of the Republic of Indonesia, Government Regulation No. 37 of 2021 on the Implementation of the Job Loss Guarantee Program, JDIH Kemenkeu, Articles 21 and 37
- BPJS Ketenagakerjaan, Job Loss Guarantee, accessed November 2026
- JDIH Kemnaker, Law No. 27 of 2026 on Employment Protection, status Effective, Articles 157-162 and 310