Cihuy! PPPK main salary will be greater than civil servants


Jakarta – The Ministry of Administrative and Bureaucratic Reform (PAN-RB) plans to provide a higher base salary for government employees with a work agreement (PPPK) compared to civil servants (PNS). This plan is a middle way of cutting income tax (PPh) Article 21.

The offer or solution for the provision of a larger base salary for PPPK also answers the issues circulating regarding the Draft Presidential Regulation (RPerpres) regarding PPPK salaries and benefits.

Based on the official statement from the PAN-RB Ministry quoted on Thursday (17/9/2020), around 51 thousand honorary staff who have passed the PPPK selection in 2019 are eagerly awaiting the issuance of the Presidential Decree on Salaries and Benefits.

However, the RPerpres formulation process took quite a long time because it had to consider various other regulations. One of the rules that must be considered is Government Regulation Number 80 of 2010 concerning Withholding Rates and Imposing of Income Tax (PPh) Article 21 on income that is borne by the State Revenue and Expenditure Budget (APBN) or Regional Revenue and Expenditure Budget (APBD).

The PPh states that PPh Article 21 for civil servants, members of the TNI, and members of the Indonesian Police is owed on regular and regular income every month which is borne by the APBN or APBD. Since the PP does not mention PPPK, this will potentially reduce PPPK salaries and benefits which should be received the same as civil servants’ salaries.

Therefore, various alternative solutions are offered so that the standard amount of salaries and allowances received by PPPK is the same as salaries and allowances for civil servants.

“Therefore, an alternative is taken to provide a salary that is different or greater than the basic salary for civil servants, so that when the PPh is imposed, the salary received by PPPK will be the same as the basic salary for civil servants,” wrote the official statement of the PAN-RB Ministry.

Currently, the RPerpres for PPPK Salaries and Allowances has entered the final stage, namely the stage of obtaining initials from the leadership of the relevant ministries / agencies (K / L). In this regard, the Minister of PANRB Tjahjo Kumolo has given his initials, and submitted them back to the State Secretariat to be recirculated to other relevant Ministers.

The PANRB Ministry hopes that the Presidential Decree regarding PPPK Salaries and Benefits can be determined in the near future and can be continued with the next process, so that PPPKs that have passed the selection in 2019 can immediately receive certainty.


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