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What Is the Tapera Contribution? Definition, Benefits, and Amount

Debby Lim
You Ask, We Answer
30 Jul 2024
What Is the Tapera Contribution? Definition, Benefits, and Amount

The Public Housing Savings or Tapera (Tabungan Perumahan Rakyat) contribution is a topic that has been widely discussed recently. Although it has many benefits, the Tapera program apparently has an influence on employee salary calculations. Even though it has become a common topic in public discussion, some of us may not understand in depth the mechanisms and objectives of this program. 

In this article, we will discuss everything about the Tapera contribution, starting from the definition, benefits, objectives, the amount of the contribution, to the time this program will be implemented.

What is Tapera Contribution?

Tapera contribution is a program that requires workers to set aside a portion of their income for a housing fund.

The program was officially established on May 20th 2024, by President Joko Widodo through Government Regulation Number 21 of 2024, which amends Government Regulation (PP) Number 25 of 2020 regarding the People’s Housing Savings (Tapera).

Prior to the PP revision, Tapera contribution were initially only required for civil servants, ASN (Aparatur Sipil Negara), TNI (Tentara Nasional Indonesia), Polri (Kepolisian Negara Republik Indonesia), as well as state-owned enterprises (BUMN) and regional-owned enterprises (BUMD). However, after the revised PP was set, Tapera contribution also applied to all workers and employers.

The Tapera contribution will be disposed routinely by participants within a certain period. Funds collected will only be used for housing financing. However, if the participants do not use the funds for housing during their membership period, the principal amount and any accrued earnings (such as interest or investment profits) will be returned to them after the membership period ends.

Tapera Contribution, for Whom?

Tapera contribution must be paid by all workers and employers in Indonesia, including:

  • Civil servants (PNS).
  • TNI/Polri members.
  • Employees of state-owned enterprises (BUMN) and regional-owned enterprises (BUMD).
  • Private sector workers employed by companies.
  • Self-employed or freelance workers.

In addition, there are several other conditions that must be met to become a Tapera participant, namely:

  • Indonesian citizens and foreign nationals (WNA) who work in Indonesia for at least six months and have paid the Tapera contribution.
  • Individuals who work and receive a salary.
  • Indonesian citizens who work independently without depending on an employer.
  • Every worker with an income at least equivalent to the minimum wage is required to become a Tapera participant.
  • Self-employed workers with an income below the minimum wage can become participants, but it is not mandatory.
  •  Participants must be at least 20 years old or married at the time of registration.

Benefits of Tapera Contribution

Some benefits of Tapera contribution are as follows:

  • All participants can apply for loans for home ownership or home improvement through Home Ownership Loans (KPR), Home Construction Loans (KBR), or Home Renovation Loans (KRR).
  • The money from Tapera contribution is considered an investment, so the value of participants’ savings funds can increase.
  • After the participation period ends, participants can withdraw their savings funds for use according to their personal needs.
  • Low-income participants can obtain loans with interest rates lower than the market rates.

How Much is The Tapera Contribution Percentage?

Tapera contribution amount to 3%, shared between the employee and the employer, with the breakdown below:

  • Employees pay 2.5% of their salary.
  • Employers pay 0.5% of the employee’s salary.

A calculation example for an employee with a salary of Rp5,000,000 is as follows:

1. Employee’s contribution

The percentage paid by the employee is 2.5%, so:

Employee’s Tapera = 2.5% x 5,000,000

                  = 0.025 x 5,000,000

                  = 125,000

Thus, an employee with a salary of Rp5,000,000 will pay Rp125,000 per month for Tapera contribution.

2. Employer’s contribution

The percentage paid by the employer is 0.5%, hence:

Employer’s Tapera = 0.5% x 5,000,000

                  = 0.005 x 5,000,000

                  = 25,000

As a result, the employer will contribute Rp25,000 per month for Tapera contribution.

Therefore, the total Tapera contribution collected from an employee with a salary of Rp5,000,000 is Rp150,000 per month (Rp125,000 from the employee + Rp25,000 from the employer).

How Long is the Duration of Tapera Contribution?

The Tapera contribution period is as follows.

  • For Tapera Home Ownership Credit (KPR) or Tapera Syariah KPR, participants can obtain financing for a maximum period of 30 years.
  • For Tapera House Building Credit (KBR) or KBR Tapera Syariah, participants can obtain financing for a maximum period of 15 years.
  • For Home Renovation Credit (KRR) Tapera or KRR Tapera Syariah, participants can obtain financing for a maximum period of 5 years.

Tapera Contribution, For When?

According to PP Number 21 of 2024, the implementation of salary deductions for Tapera contribution is from the time the regulation is established, May 20th, 2024. 

In addition, in accordance with Article 68 in PP Number 25 of 2020, employers are required to register their workers as Tapera participants a maximum of seven years after the regulation is implemented.

That said, the Tapera contribution implementation is from May 20th, 2024, while the registration of the membership will be no later than May 20th, 2027.

When will Participants be Able to Apply for Disbursement?

Participants can apply for disbursement of funds from Tapera after their membership period ends. The situation where Tapera contribution membership ends is if:

  • Workers have entered retirement.
  • Independent workers have reached the age of 58 years.
  • Death of the participant.
  • Participants no longer qualify as participants for 5 consecutive years, for instance when they are no longer working.

In conclusion, the Tapera contribution is one of the government’s efforts to support the welfare of workers in Indonesia through affordable and sustainable housing programs.

However, apart from affecting workers, the Tapera program also automatically requires the company’s finance and human resources (HR) departments to make adjustments to the implementation of these regulations.

Apart from the responsibility of registering employees, companies must change the salary calculation formula, as well as ensure transparency in every calculation detail stated in employee pay slips. Thus, this change can be a challenge, especially if the company still uses manual methods to manage this work.

Therefore, to optimize operational efficiency, companies should consider using Outsourcing services, one of which is from RecruitFirst Indonesia. We are experienced in helping manage administrative and operational tasks so that your company can focus more on core activities and development strategies. Don’t hesitate to contact us now for more information!

Debby Lim
Author
Debby Lim

As the business leader of RecruitFirst Indonesia, Debby brings over 13 years of industry experience to the team. With a wealth of knowledge across various industries, Debby excels at handling diverse roles and delivering exceptional results.

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