Laid off: the first 30 days to protect your finances and your family

A layoff often comes out of nowhere, and the first reaction is usually panic: draining savings, grabbing any job, or rushing to “put the severance to work”. Almost all of that can wait a few days. Only the paperwork can't.

Keep the layoff letter, any joint agreement, your last payslip and the severance breakdown. Check the severance is calculated according to the rules; if in doubt, you can ask your local Manpower Office (Dinas Ketenagakerjaan). You will need these documents for JKP, BPJS Kesehatan and JHT.

In the first week, your job is not to solve everything. Your job is not to make things harder.

First, the job-loss benefit (JKP) from BPJS Ketenagakerjaan. Since PP 6/2025, the cash benefit is 60% of wage for up to 6 months. The wage used for the calculation is capped at Rp5 million, so the benefit is at most Rp3 million a month. The main conditions: at least 12 months of contributions in the last 24, and the layoff came from the employer (not a resignation). Fixed-term (PKWT) workers qualify too, if the layoff happens before the contract ends. Apply through the SIAPkerja portal, no later than 6 months after the layoff. Besides cash, JKP also gives access to job listings and training.

Second, BPJS Kesehatan. Laid-off workers stay covered for up to 6 months without paying contributions, by showing proof of the layoff such as the termination letter, a joint agreement, or the Manpower Office's receipt of the layoff report. After that, you need to switch to independent membership or join through a new employer.

Third, the old-age savings fund (JHT). The balance can be withdrawn in full after a 1-month waiting period from your last day of work. But remember, this is your retirement money. If savings and severance are enough, leaving JHT to keep growing is often the better choice for your future.

Health and life cover from an employer usually ends when employment ends. This is when many families first notice a Celah Proteksi (protection gap): their protection was riding on the office all along.

Ask HR three things: exactly when cover ends, whether the group policy can be continued or converted to a personal policy, and whether any claims can still be made for treatment before the end date. Meanwhile, make sure the whole family's BPJS Kesehatan is active. That is the foundation you can't let go of.

One thing best avoided: buying a big new product in a panic. If you later need to strengthen your protection, do it once your finances are steady and you clearly understand what you need.

Bulan Bertahan (months of runway) is how many months the family can live as normal on the money available. The formula is simple: usable savings plus severance, divided by monthly household spending. Example: Rp30 million in savings and Rp45 million severance, with spending of Rp12 million a month. With no other help, the family can last about 6.3 months.

Two things can stretch it. If you qualify for JKP of Rp3 million a month for 6 months, Bulan Bertahan rises to about 7.8 months. Add a 20% cut in spending and it reaches about 9.7 months. Three extra months can be the difference between taking the first job offered and waiting for the right one.

Severance feels big because it arrives at once, yet it has to replace a salary for an uncertain stretch. A generally safe order: first, set aside your Bulan Bertahan money somewhere easy to reach. Second, pay off high-interest debt such as credit cards, paylater or online loans, because the interest keeps running. Third, keep the family's health cover active. Only then think about a business or investing.

Be wary of offers that appear just as you are holding cash: “business opportunities” with guaranteed high returns, investments not registered with OJK, or requests for large loans. If in doubt, check legitimacy on OJK's website, and give yourself a few weeks before deciding.

Many workers support two generations at once. Hiding a layoff from a spouse or parents usually makes the load feel heavier and the plan harder to follow. Share the numbers honestly: how many months the family can last, which spending can wait, and what help JKP may bring. A plan everyone understands is easier to keep.

General information, not legal, employment or financial advice, and not a recommendation of any product. Your rights and obligations after a layoff depend on your contract and circumstances. For severance disputes, contact your local Manpower Office or a legal adviser.