Key 2025 Ministerial Regulations Every Employer Should Know
A summary of Permenaker No. 1 and No. 2 of 2025 and PP No. 49/2025—social insurance changes, JKP benefits, and the new UMP formula that directly affect employer obligations.
Through 2025, several new labor regulations were issued with direct impact on employer obligations—from social insurance administration to protections for workers facing job loss. Here is a summary HR and operations teams should know.
Permenaker No. 1 of 2025 — Social Insurance for Non-Civil-Servant Workers
Effective 24 February 2025, this regulation requires government agencies to enroll non-civil-servant staff (contract and honorary workers) in JKK (Workplace Accident Insurance), JKM (Life Insurance), and JHT (Old Age Savings) through BPJS Ketenagakerjaan. For private companies placing workers in government environments, this has implications for the enrollment status of placed staff.
Permenaker No. 2 of 2025 — Employment Loss Insurance (JKP) Benefits
Enacted 26 March 2025, this regulation updates the procedures for delivering Job Loss Insurance (JKP) benefits—the program providing cash support, vocational training access, and job market information for workers facing termination. Companies conducting layoffs need to understand the updated reporting procedures so workers can access JKP benefits promptly.
- Cash benefit: 45% of wages for months 1–3, then 25% for months 4–6.
- Access to vocational training through government-designated platforms.
- Job market information and employment exchange access during the active claim period.
PP No. 49 of 2025 — New UMP Formula
Signed in December 2025 and effective 1 January 2026, this regulation changes the minimum wage formula to inflation plus regional economic growth multiplied by an alpha index (0.5–0.9). The result is a national average UMP increase of 5–8% across all provinces—a direct impact on labor cost structure and budget planning.
What companies should do
- Audit BPJS enrollment for all workers—including those on contracts or placed through outsourcing partners.
- Understand the updated PHK reporting procedures so JKP processing is not delayed.
- Update payroll systems and HR budgets to reflect the UMP/UMK applicable at each operating location.
- Consult employment counsel if specific compliance obligations are unclear.
This article is informational and not a substitute for legal advice. For specific compliance, review official regulatory texts and engage appropriate consultants.
Sigma Solusi Servis helps companies track regulatory changes and ensures workforce administration—from BPJS enrollment to payroll—stays accurate and compliant every period.