Employer have an obligation to give an insurance to their employees this rule have been arranged in Indonesian Government that is based on Universal Declaration of Human Right Organization and have been rule by ILO convention No. 102 – 1952. On this ILO statement said that the standard of labor welfare are; old day subsidy, health care, disable, dead and no job.
This rule can not be obey by all company that employing worker, but for this purpose Indonesian company also have a standard rule. A company who minimum have 10 employee or they pay a minimum Rp. 1 million to their employee, the company must give a social security system. This condition depends on the salary system that is applied to the company, because not all the company has a full time employee. For part time employee sometimes only work for one week, or two week, but they can received salary more than Rp. 1 million, the company have to apply this rule.
A normal company has to follow minimum 3 program that include on the social security system, old day subsidy or no job subsidy, health care, disable or dead. But for below standard company may only apply for one or two point like only health care and disable or just follow if disable happened, this depend on the working condition.
A company which impinges this rule they mean on the critical condition because there are threat of punishment to them. If never accident happened an employer may never be claimed by employee but if this happened the employer can claimed and reported to the police about that mistake.
For each item on the social security system there are a description and calculation such as the percentage for health care, old day and for dead or disable insurance. For this purpose sometime the company only take a minimum for each item. Total subsidy for old day only 5% in total from basic salary, the description of this subsidy 3.5% from company and 1.5% is deducted from our salary, something like that.