Yes, the mandatory contribution for foreign employees includes expatriates.

Yes, employers are still required to make contributions on behalf of local employees who choose to contribute to the Lindung  24 Jam scheme via the online portal.

Yes, as the voluntary nature of the contributions were effective immediately on 8 July 2026, employers should notify employees on the changes to the contribution for local employees and obtain their election before processing any contribution during the July payroll.

PERKESO has announced that employees who choose to opt out of the contribution would have to sign a declaration releasing liability. Employers should therefore avoid creating a permanent internal process that conflicts with the mechanism subsequently prescribed by PERKESO. Pending further guidance, employers may issue an interim communication and obtain written consent from employees who wish to continue participating.

There is no information on this at this point in time. PERKESO will be issuing further information in the near future on the mechanisms and implementation of the voluntary contribution under the scheme.

No, the voluntary nature to the contribution under the Lindungan 24 Jam scheme is effective 8 July 2026. The Company cannot mandate a compulsory contribution for local employees for the July payroll if the employee elects not to contribute to the scheme.

Since the effective date of the voluntary contribution is 8 July 2026, companies should still proceed to pay the contribution for June 2026 even though the cut off date is 15th July.

The statutory contribution is described as being fully borne by the employee. Accordingly, employers should not assume that they may replace the employee’s contribution obligation by paying it directly as an employer contribution.

An employer may consider providing a separate allowance or reimbursement, subject to payroll and tax treatment, but this should only be implemented after PERKESO confirms that it does not affect the validity of the employee’s voluntary participation or statutory contribution records.

Pending PERKESO’s formal mechanism, employers should retain clear written evidence showing:

• the employee’s name and identification details;

• whether the employee elects to participate or not participate;

• acknowledgement that the contribution will be deducted from the employee’s wages;

• the applicable effective date; and

• the employee’s signature or verifiable electronic confirmation.
  

The records should be kept together with the payroll deduction and PERKESO remittance records. Once PERKESO introduces an official election form (if any) or the online process applicable including the signed declaration releasing liability for employees who opt out of contributing, employers should adopt that mechanism and update their internal records accordingly.