How to Calculate Employee’s Net Salary in 2023 After Deducting PPh21, BPJS Kesehatan, and BPJS Ketenagakerjaan
What is Net Salary?
Net Salary, also known as “Gaji Nett” in Indonesian, is the amount of money received by an employee after deducting various deductions such as Income Tax (Pajak Penghasilan Pasal 21 or PPh21), Health Insurance (BPJS Kesehatan), and Employment Social Security (BPJS Ketenagakerjaan). For many employees, calculate net salary can be a complex task. In this article, we will discuss the steps to calculate an employee’s net salary in 2023, taking into account the deductions of PPh21, BPJS Kesehatan, and BPJS Ketenagakerjaan.
Step 1: Calculate Gross Salary
Gross salary is the total income received by an employee before tax and other deductions. It includes the basic salary, allowances, bonuses, incentives, and other income received in a month.
Example:
- Basic salary: Rp 5,000,000
- Transportation allowance: Rp 1,000,000
- Bonus: Rp 500,000
- Incentive: Rp 300,000
Gross salary = Basic salary + Allowance + Bonus + Incentive
Gross salary = Rp 5,000,000 + Rp 1,000,000 + Rp 500,000 + Rp 300,000
Gross salary = Rp 6,800,000
So, the employee’s gross salary is Rp 6,800,000.
Step 2: Calculate PPh21 (Income Tax)
PPh21 is the income tax withheld by the employer on an employee’s income. To calculate PPh21, you need to know the tax rates applicable in 2023. The tax rates based on annual income are as follows:
- Income up to Rp 60,000,000: 5%
- Income over Rp 60,000,000 to Rp 250,000,000: 15%
- Income over Rp 250,000,000 to Rp 500,000,000: 25%
- Income over Rp 500,000,000 to Rp 5,000,000,000: 30%
- Income over Rp 5,000,000,000: 35%
Example:
Employee’s gross salary: Rp 6,800,000
Non-Taxable Income: Rp 6,800,000 x 12 months = Rp 81,600,000
Taxable Income: Rp 81,600,000 – Rp 54,000,000 = Rp 27,600,000
Annual PPh21 = Rp 27,600,000 x 5%
Annual PPh21 = Rp 1,380,000
Monthly PPh21 = Rp 1,380,000 / 12
Monthly PPh21 = Rp 115,000
So, the monthly PPh21 that should be deducted from the employee’s salary is Rp 115,000.
Also read: Also read: PPh 21 Calculation for 2023: PTKP Rates and Calculation Examples.
Step 3: Deduct BPJS Kesehatan (Health Insurance)
BPJS Kesehatan is a mandatory health insurance program for all employees in Indonesia. The deduction for BPJS Kesehatan is 5% of the gross salary, with 4% covered by the employer and 1% by the employee.
Example:
Employee’s gross salary: Rp 6,800,000
Employer’s contribution to BPJS Kesehatan = 4% x Rp 6,800,000
Employer’s contribution to BPJS Kesehatan = Rp 272,000
Employee’s contribution to BPJS Kesehatan = 1% x Rp 6,800,000
Employee’s contribution to BPJS Kesehatan = Rp 68,000
So, the monthly deduction for BPJS Kesehatan is Rp 68,000.
Step 4: Deduct BPJS Ketenagakerjaan
BPJS Ketenagakerjaan is a social security program that includes retirement benefits, death benefits, and old-age benefits. The deduction for BPJS Ketenagakerjaan consists of two components: social security contributions and pension contributions. The amount of the deduction depends on the employee’s salary and the employer’s contribution.
Example:
Employee’s gross salary: Rp 6,800,000
Employer’s contribution to BPJS JHT (social security) = Rp 6,800,000 x 3.7% = Rp 251,600
Employer’s contribution to BPJS JKK (occupational accident) = Rp 6,800,000 x 0.24% = Rp 16,320
Employer’s contribution to BPJS JKM (death benefit) = Rp 6,800,000 x 0.30% = Rp 20,400
Employer’s contribution to BPJS JP (pension) = Rp 6,800,000 x 2% = Rp 136,000
Employee’s contribution to BPJS JHT = Rp 6,800,000 x 2% = Rp 136,000
Employee’s contribution to BPJS JP = Rp 6,800,000 x 1% = Rp 68,000
So, the total monthly deduction for BPJS Ketenagakerjaan that the employee has to bear is:
Rp 136,000 (BPJS JHT) + Rp 68,000 (BPJS JP) = Rp 204,000
Step 5: Calculate Monthly Net Salary
Net salary is the result of the gross salary minus PPh21, BPJS Kesehatan, and BPJS Ketenagakerjaan deductions.
Example:
Employee’s gross salary: Rp 6,800,000
PPh21: Rp 115,000
BPJS Kesehatan deduction: Rp 68,000
BPJS Ketenagakerjaan deduction: Rp 204,000
Net salary = Gross salary – PPh21 – BPJS Kesehatan deduction – BPJS Ketenagakerjaan deduction
Net salary = Rp 6,800,000 – Rp 115,000 – Rp 68,000 – Rp 204,000
Net salary = Rp 6,413,000
So, the employee’s net salary that they will receive every month is Rp 6,413,000.
Important Notes
- Always make sure to understand the company’s policies regarding BPJS Ketenagakerjaan because the deduction amount may vary.
- Changes in tax regulations and BPJS provisions can occur each year, so always check official sources for the latest information.
- Also, make sure to pay PPh21, BPJS Kesehatan, and BPJS Ketenagakerjaan on time to avoid legal and financial issues in the future.
Calculating an employee’s net salary can be a complex task, especially when there are many salary components and deductions to consider. However, by understanding the steps above and complying with the applicable regulations, you can ensure that employees receive a net salary that corresponds to their income after deducting Income Tax (PPh21), Health Insurance (BPJS Kesehatan), and Employment Social Security (BPJS Ketenagakerjaan).
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