DIGIVESTASI - The Indonesian government continues to extend the retirement age of workers in line with regulations outlined in the legislation. According to Government Regulation (PP) No. 45 of 2015 regarding the Implementation of Pension Programs, the retirement age is set to increase by one year every three years. Starting at the age of 57 in 2019, the retirement age will become 58 in 2022, and it is scheduled to increase again to 59 in 2025.

This policy is designed to align the retirement age with the increasing life expectancy in Indonesia, as well as to ensure the sustainability of the pension program.

The Head of the Public Relations Bureau of the Ministry of Manpower, Sunardi Manampiar Sinaga, explained that the retirement age represents the maximum limit for workers to stop working. However, it should still be adjusted based on the type of work, workload, and physical factors that require more energy.

For workers registered in the Pension Guarantee Program (JP), they are entitled to benefits from BPJS Ketenagakerjaan, both during their working years and after retirement. These benefits can be claimed when participants reach the retirement age, experience total permanent disability, or when the participant passes away, for the heirs.

"In 2025, the retirement age for workers will reach 59 years in accordance with PP No. 45 of 2015, and this policy will continue until 2043, when the retirement age will be set at 65 years. This is based on the increase in life expectancy in Indonesia and the improvement in public health conditions," explained Sunardi in an official statement, quoted on Saturday (January 18, 2025).

Sunardi also emphasized that the Pension Guarantee (JP) is a right of workers that must be fulfilled by companies, along with other obligations such as severance pay, long service awards, and Old Age Benefits (JHT). All these obligations are intended to provide certainty of social protection for workers.

He added that the legislation also regulates Employment Agreements (PK), Collective Labor Agreements (PKB), and Company Regulations (PP) as guidelines for the relationship between workers and employers, as outlined in Law No. 13 of 2003 concerning Manpower, which has been updated through the Omnibus Law (Law No. 11 of 2020).

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