3% social security contribution

conface Active member

Member since 19 July 2011

confaceActive member21 July 2011 16:26:41

Hi guys, i read from the government website saying that a social security deduction of 3% on the monthly should be made to the Gov...is this only happening to the locals?聽 Any expat here experienced such deduction b4?

Thanks

conface Active member

Member since 19 July 2011

confaceActive member22 July 2011 08:05:38

Haloo...anyone? pls..?

AndrewM Active member

Member since 29 March 2011

AndrewMActive member23 July 2011 15:18:52

as I understand it, expats dont pay the 3% for the first 2 years and then its capped at just under Rp8,000. Not sure if this is per month or per year though.

tarunhshah Active member

Member since 09 October 2010

tarunhshahActive member23 July 2011 15:39:12

No as per my understanding it is not for expat

AndrewM Active member

Member since 29 March 2011

AndrewMActive member23 July 2011 18:26:11

OK here's the definative answer, according to the government website:

Main points are, yes non-citizens i.e. expats, pay 3% NPS (national pension scheme) contributions from year 3, unless they are self employed, when it is voluntary. The cap is on a monthly salary of Rs 9040 or about 拢227. So the most you would pay is 3% of 拢227 or 拢6.81 per month (Rs271). So don't worry too much its not going to kill you!
Andrew

conface Active member

Member since 19 July 2011

confaceActive member24 July 2011 12:17:00

That is very helpful, thank you guys.

So can i safely say that our empployer only deduct 15% income tax & 3% NPS (starting year 3 for expat) from our gross pay every month and nothing else?聽 Hope there r no more deductions...