Rp 1 Mn Bonus for Workers in ‘Lvl 4’ Areas

The Indonesian Government will provide wage subsidies of Rp. 1 million to qualified workers living in a “Level 4” PPKM ((Emergency Limitations on Public Movement) area of the country.

Only workers in the designated areas earning less than Rp. 3.5 million per month, using the Government’s stipulated minimum wage as a benchmark, are eligible for the wage subsidy. For workers living in areas where the minimum wage standard is more than Rp. 3.5 million, then the benchmark will be whatever the Regional Minimum Wage (UMK-Daerah) that applies in their locale.

The current regions of Indonesia listed as PPKM-Level 4 and therefore eligible for “subsidi gaji” (Wage subsidy) are:

  • The Special District of Jakarta (DKI Jakarta) in all regencies and cities classified as “level 4.”
  • The Province of Banten where a “level 4” classification applies: City of South Tangerang, Tangerang City, and the City of Serang.
  • Those areas in the Province of West Java classified as “level 4”: The Regency of Purwakarta, The Regency of Karawang, The Regency of Bekasi, Sukabumi City, Depok City, Cirebon City, Bogor City, Bekasi City, Banjar City, Bandung City, and Tasikmalaya City.
  • Those areas in the Province of Central Java classified as “level 4”: Regency of Sukoharjo, Regency of Rembang, Regency of Pati, Regency of Kudus, Regency of Klaten, Regency of Kebumen, Regency if Grobogan, Regency of Banyumas, Tegal City, Surakarta City, Semarang City, and Magelang City.
  • The Special District of Yogyakarta (Daerah Istimewa Yogyakarta) classified as “level 4”; Regency of Sleman, Regency of Bantul, and the Yogyakarta City.
  • Those areas of the Province of East Java classified as “level 4”: Regcny of Tulungagung, Regency of Sidoarjo, Regency of Madiun, Regency of Lamongan, Regency of Gresik, Surabaya City, Malang City, Madiun City, Kediri City, Blitar City, and Batu City.

The one million Rupiah wage subsidy will be paid to eligible workers in two separate Rp. 500,000 payments over two months. The two payments will, in turn, equal one million Rupiah.

The wage subsidies are linked to data on file as of 30 June 2021 with the State Social Security Program (BPJS Ketenagakerjaan). Only workers actively registered and paying into the BPJS Ketanagakerjaan System on that date are eligible for the wage subsidy.

The other requirements to be eligible for the wage subsidy are:

  • Recipients must be Indonesian Citizens with NIK – Resident Numbers.
  • Recipients must also be active members of the BPJS Ketenagakerjaan Scheme, as demonstrated by an official participant card.
  • Participants must be recorded in the BPJS Ketenagakerjaan System as receiving a declared wage of less than Rp. 3.5 million per month or, alternatively, less than the official maximal regional wage (UMK) when that amount is more than Rp. 3.5 million.
  • Recipients of the wage subsidy must be employed in the following economic sectors: consumer goods, trade, service sector (excluding education and health), the property sector, and real estate.