Benefits and

Services
Asistensi MSDM
Benefits
Employees receive indirect financial and nonfinancial payments for continuing their employment with the
company, which employers use to attract, recognize, and retain workers.
Ex: health and life insurance, pensions, paid time off, and child-care assistance.

Benefits packages should be designed Classification of Benefits

carefully and many policy decisions must be 1. Pay for time not worked (such as
made, such as: vacations)
- what benefits to offer? 2. Insurance benefits
- who receives coverage? 3. Retirement benefits
- whether to include retirees in the plan 4. Personal services benefits, and
- whether to deny benefits to employees 5. Flexible benefits.
during initial “probationary” periods
- how to finance benefits?
- how to communicate benefits options to
1. Pay for Time not Worked
Or supplemental pay benefits, is very costly, because of how much time off most employees receive.
Common time-off-with-pay benefits include holidays, vacations, jury duty, funeral leave, military duty,
personal days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for
laid-off or terminated employees.
Unemployment Insurance (Compensation) Severance Pay
Provides benefits if a person is unable to work through A one-time payment some employers provide when
some fault other than his or her own. terminating an employee.

Vacations and Holidays Pay

Supplemental Unemployment Benefits
How many vacation days do employees get, and which
Cash payments that supplement the employee’s
days (if any) are paid holidays?
unemployment compensation, to help the person
Sick Leave maintain his or her standard of living while out of work.
provides pay to employees when they’re out of work due
to illness.
2. Insurance Benefits
Most employers also provide a number of required or voluntary insurance benefits, such as workers’
compensation and health insurance.

Worker’s Compensation Several ways to reduce workers’ compensation claims:

Income and medical benefits are provided in work- 1. Competent selection.
related accidents to the victims or their dependents, 2. Reduce accident-causing conditions.

regardless of fault. Workers’ compensation can be

3. Case management is a popular cost-control method.
4. Moving aggressively to support the injured employee and to get
monetary or medical, or a combination.
him or her back to work quickly is important too.

Hospitalization, Health, and Disability Insurance

Help protect employees against hospitalization costs and
the income loss arising from off-the-job accidents or
illness. Include mental health benefits.
3. Retirement Benefits
Social Security Pension Plans

1. Retirement benefits provide an income if you retire at a Provide income to individuals in their retirement, and just over

certain age or thereafter and are insured under the half of full-time workers participate in some type of pension plan

government’s regulation. at work. We can classify pension plans as contributory versus

2. Survivor’s or death benefits provide monthly payments to noncontributory plans, and defined contribution versus defined

your dependents regardless of your age at death. benefit plans.

- The employee contributes to contributory pension plans,
3. Disability payments provide monthly payments to employees
while the employer makes all contributions to
who become disabled totally (and to their dependents) if they
noncontributory plans.
meet certain requirements.
- Defined benefits plans “define” how much the pension will
Early Retirement be, while with defined contribution plans the benefits (if any)
A type of offering by which employees are encouraged to retire will depend on the contributions to the plan and on how the
early, the incentive being liberal pension benefits plus perhaps a assets performed.
cash payment.
4. Personal Service Benefits
Although time off, insurance, and retirement account for the lion’s share of benefits costs, most
employers also provide various services benefits. These include personal services (such as legal and
personal counseling), “family-friendly” services (such as child-care facilities), educational subsidies, and
executive perquisites (such as company cars for its executives).
Family-Friendly (or Work–Life) Benefits
Employee Assistance Program (EAP)
Benefits such as child care that make it easier for
A formal employer program for providing employees
employees to balance their work and family
with counseling and/or treatment programs for problems
responsibilities.
such as alcoholism, gambling, or stress.
5. Flexible Benefits
Millennials value benefits choices, paid time off, the ability to work remotely, control over their
schedules, and flexibility. Offering flexibility thus makes sense.

Cafeteria Benefits Plan Job Sharing

Individualized tax-qualified plans are allowed by Allows two or more people to share a single full-time
employers to accommodate employee preferences for job.
benefits.
Work Sharing
Flextime
Refers to a temporary reduction in work hours by a
A work schedule in which employees’ workdays are built
group of employees during economic downturns as a
around a core of midday hours, and employees
way to prevent layoffs.
determine, within limits, what other hours they will
work.

Compressed Workweek
Schedule in which employee works fewer but longer
days each week.
THANK
YOU
SUPLEMEN
Severance Pay (Uang Pesangon) in Indonesia (based on PP 35/2021)

Years of Service Severance Pay

< 1 year 1 month salary

> 1 year ; < 2 years 2 months salary

> 2 years ; < 3 years 3 months salary

> 3 years ; < 4 years 4 months salary

> 4 years ; < 5 years 5 months salary

> 5 years ; < 6 years 6 months salary

> 6 years ; < 7 years 7 months salary

> 7 years ; < 8 years 8 months salary

> 8 years 9 months salary

SUPLEMEN
Service Rewards Pay (Uang Penghargaan Masa Kerja) in Indonesia (based on PP 35/2021)

Years of Service Severance Pay

> 3 years ; < 6 years 2 months salary

> 6 years ; < 9 years 3 months salary

> 9 years ; < 12 years 4 months salary

> 12 years ; < 15 years 5 months salary

> 15 years ; < 18 years 6 months salary

> 18 years ; < 21 years 7 months salary

> 21 years ; < 24 years 8 months salary

> 24 years 10 months salary

SUPLEMEN
The salary component used as the basis for calculating severance pay and service rewards pay consists
of:
1. Basic salary;
2. Fixed allowances are given to workers/laborers and their families.

Employers can lay off workers/laborers for the reason that workers/laborers are entering retirement
age, so workers/laborers are entitled to:
3. Severance pay of 1.75 times;
4. 1 time service reward money;
5. Compensation benefit.
CASE STUDY
Pak Prapto is an employee who has worked for 22 years in a company when he reaches
retirement age. Pak Prapto’s final salary was IDR 15 million per month, calculated as IDR 13
million as basic salary and IDR 2 million as food and transportation allowances as fixed
allowances. Because he had entered retirement age, the company laid off Pak Prapto. How
much total pension will Pak Prapto receive?
Based on the previous case, Pak Prapto will receive severance pay of 9 months salary. Apart
from that, Pak Prapto also received service rewards pay for 8 months of service but did not
receive compensation for rights because there was no remaining leave.

NOTE:
The amount of pension that will be
received may be different if the
company enrolls Pak Prapto in another
employment insurance program (BPJS
Ketenagakerjaan).