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BPJS Ketenagakerjaan has implemented several changes to Indonesia's Pension Security Program effective 2026. The official retirement age increases from 58 to 59. The maximum monthly wage ceiling for pension contribution calculations rises to Rp 11,086,300 starting March 2026. Monthly pension benefits for 2026 range from Rp 411,400 to Rp 4,932,300. These changes follow Government Regulation No. 45 of 2015 and reflect Indonesia's 5.11% GDP growth in 2025.
Indonesia's social security administrator, BPJS Ketenagakerjaan, has implemented changes to the country's Pension Security Program (Jaminan Pensiun) effective March 2026. The official retirement age increases from 58 to 59 years, and the maximum monthly wage ceiling for pension contribution calculations rises to IDR 11,086,300. These adjustments follow Government Regulation No. 45 of 2015 and reflect Indonesia's 5.11% GDP growth in 2025.
Who is affected
All employers and employees participating in the BPJS Ketenagakerjaan Pension Security Program are affected by these changes. This includes both Indonesian nationals and foreign workers enrolled in the mandatory social security system. Employers must adjust their payroll systems to accommodate the new wage ceiling for pension contribution calculations starting with the March 2026 contribution period.
What's changing
| Parameter | Before (2025) | After (March 2026) |
|---|---|---|
| Retirement age | 58 years | 59 years |
| Maximum wage ceiling for pension contributions | Lower threshold | IDR 11,086,300 |
| Monthly pension benefit range | Not specified | IDR 411,400 – IDR 4,932,300 |
The retirement age increase means employees must work one additional year before becoming eligible for pension benefits under the BPJS Ketenagakerjaan program. The new maximum wage ceiling of IDR 11,086,300 caps the monthly salary amount used to calculate both employer and employee pension contributions. Monthly pension benefits for 2026 will range from a minimum of IDR 411,400 to a maximum of IDR 4,932,300 for eligible participants.
What NEO partners and clients should do
- Update payroll systems by March 1, 2026 to reflect the new maximum wage ceiling of IDR 11,086,300 for pension contribution calculations
- Review employment contracts and retirement policies to align with the new retirement age of 59 years
- Communicate changes to affected employees regarding the updated retirement age and pension benefit ranges
- Verify contribution calculations for employees earning above the new wage ceiling to ensure compliance with the updated parameters
