Indonesia: Reduced Insurance Premiums for Non-Wage Recipient Workers or Self-Employed Workers now Implemented Through New Regulation

On 22 December 2025, the Indonesian Government issued Government Regulation No. 50 of 2025 on Adjustment of Work Accident Insurance Contributions and Death Insurance for Non-Wage Recipient Participants (“GR 50/2025”), which outlines a new policy for a reduction in the amount of contributions that would need to be paid by workers to be eligible for Work Accident Insurance and Death Insurance from the Government (the “Insurances”). Specifically, these benefits are given to workers that are not employed through an employment relationship and/or are self-employed (Article 3 paragraph 4 of GR 50/2025). Normally, such Insurances would either be paid by the employer on behalf of the employee, while individuals that are self-employed are allowed to participate on their own by paying the same premiums.

Workers in such conditions are now only required to pay 50% (fifty percent) of the monthly insurance premiums normally required for to participate in the Government Manpower Social Security Program as implemented through the Social Security Administering Body (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan or “BPJS TK”), without any changes or reductions in the benefits they would normally receive under the Insurances if they were employed (Article 4 paragraph 1 of GR 50/2025). Workers must be registered and participating in BPJS TK to be eligible for this benefit, and this benefit only applies to the Insurances as provided by BPJS TK.

The regulation comes into effect for workers in the transport services industry starting January 2026 until March 2027, while the regulation comes into effect for workers in other industries starting April 2026 until December 2026.