Permenaker 16/2026 sets the 2026 wage subsidy (BSU): Rp300,000 a month for three months, paid at once as Rp900,000, to Indonesian workers on BPJS Ketenagakerjaan through August 2026 who earn up to Rp3.5 million a month, or the local minimum wage where it is higher

Labor & HRPermenaker 16/2026UpdatedUpdated: November 8, 2026

Manpower Minister Yassierli signed Permenaker 16/2026 on 28 October 2026. It is the second amendment of Permenaker 10/2022 on the government wage subsidy (BSU), was promulgated the same day (State Bulletin 2026 No. 732) and is in force from promulgation. It is the regulation behind the BSU announced in the Q4 stimulus package (see our entry on that package). The subsidy is Rp300,000 a month for three months, paid together as Rp900,000, to workers who are Indonesian citizens with a NIK, were active participants in BPJS Ketenagakerjaan through August 2026, and whose last wage reported to BPJS Ketenagakerjaan is at most Rp3.5 million a month, or, where the district or city minimum wage (or, if none is set, the provincial one) is higher, at most that minimum wage rounded up to the nearest Rp100,000. Civil servants, soldiers and police are excluded. Kemnaker said on 7 November that payment is scheduled for November–December 2026 through the state banks (Himbara) and PT Pos Indonesia, and that workers do not need to register. We found this rule on 8 November, after it took effect, so the entry is published after the fact.

Key points

  • Source and dates: Peraturan Menteri Ketenagakerjaan Nomor 16 Tahun 2026 tentang Perubahan Kedua atas Peraturan Menteri Ketenagakerjaan Nomor 10 Tahun 2022 tentang Pedoman Pemberian Bantuan Pemerintah Berupa Subsidi Gaji/Upah bagi Pekerja/Buruh. Established in Jakarta and promulgated on 28 October 2026 (Minister Yassierli; Director General of Legislation Dhahana Putra), State Bulletin (Berita Negara) 2026 No. 732, in force on promulgation (Article II). It amends Permenaker 10/2022 as already amended by Permenaker 5/2025. We read the signed text on the Kemnaker JDIH site.
  • Who qualifies (Article 3): an Indonesian citizen shown by a NIK; an active participant in BPJS Ketenagakerjaan through August 2026; and a worker whose wage is at most Rp3,500,000 a month. Civil servants (ASN), TNI soldiers and Polri members are excluded. Our reading: foreign nationals cannot qualify, because the first condition is Indonesian citizenship.
  • Which wage counts (Article 4): the last wage the employer reported to BPJS Ketenagakerjaan and that is recorded there, made up of basic wage and fixed allowances. Where the district or city minimum wage (UMK) is above Rp3.5 million, the cap is that UMK rounded up to the nearest Rp100,000; where an area sets no UMK, the cap is the provincial minimum wage (UMP) rounded up in the same way. The annex lists the areas. Examples from the annex (2026 minimum wage, then the cap): DKI Jakarta UMP Rp5,729,876, cap Rp5,800,000; Kabupaten Bekasi Rp5,938,885, cap Rp6,000,000; Karawang Rp5,886,853, cap Rp5,900,000; Kota Tangerang Rp5,399,405.69, cap Rp5,400,000; Kota Surabaya Rp5,288,796, cap Rp5,300,000; Batam Rp5,357,982, cap Rp5,400,000.
  • Amount and basis (Article 6): Rp300,000 a month for three months, paid together (Rp900,000), given according to the number of workers who meet the conditions and the budget ceiling in Kemnaker's budget document (DIPA). Earlier press reports differed on the amount and the period; the regulation text says Rp300,000 a month for three months, paid at once. The package figures (about 13.3 million workers and about Rp11.97 trillion) come from the earlier announcement, not from this regulation.
  • What Kemnaker has said (press release of its Public Relations Bureau, reported by CNBC Indonesia on 7 November): Director General Indah Anggoro Putri says the subsidy is paid at once, scheduled for November–December 2026 through the Himbara banks and PT Pos Indonesia, and workers do not need to register; workers who were not receiving the Family Hope Programme (PKH) before the payment are given priority; and employers are asked to give accurate worker data. The priority for non-PKH recipients is stated in the press release, not in the regulation text we read.
  • What we have not seen: the technical guidelines the press release mentions, the payment date for each recipient, and any official explanation of how to check eligibility. We have not found a statement of how the payment is treated for tax.

What this means for your Indonesian entity

The subsidy is paid by the government straight to eligible workers, so it does not pass through your payroll and your company has nothing to apply for. What touches employers is the data: eligibility rests on the wage your company last reported to BPJS Ketenagakerjaan, and Kemnaker has asked employers to make sure the data is accurate. Practical checks: (1) expect questions from lower-paid staff. The tests are the reported wage (basic wage plus fixed allowances), BPJS participation through August 2026 and, in higher-wage regions, the local cap in the annex, so a worker who was not enrolled, or whose reported wage is above the cap, will not qualify and you should not promise otherwise; (2) foreign staff are outside the scheme, because it requires Indonesian citizenship with a NIK; (3) civil servants, soldiers and police are excluded; (4) tell staff that, according to Kemnaker, no registration is needed, so any request for a fee or personal data to 'process' the subsidy is a warning sign. We have not seen the technical guidelines, the payment dates for each recipient or the tax treatment of the payment, so check Kemnaker's announcements before giving staff a date. This is orientation, not advice.

Sources

This page summarises publicly available information for orientation. It is not tax, legal, or accounting advice, and regulations change. Verify against the linked primary sources and contact us before acting on anything here.

Need to know how a change affects your entity?

Tell us your situation and we will tell you what actually applies to you.

Contact Us