The federal government has withdrawn both notifications that imposed restrictions on receipt of pensions and salaries for people taking up government jobs after retirement. According to a new memorandum issued by the Ministry of Finance, the withdrawal of these notifications will take immediate effect.
The Finance Ministry has withdrawn the notification issued on April 22, 2025, which required pensioners returning to government service to choose between receiving a pension or a salary.
According to that notice, federal pensioners who resumed employment after age 60 were prohibited from receiving pension and salary simultaneously.
Read: The government implements a new pension plan
The federal government officially implemented the Contributory Pension Plan for public servants in March, marking a major reform in the pension system. The reform was aimed at curbing the rise in pension spending, estimated at Rp1.05 trillion by 2024-25, up 29% from last year.
Under the new rules, employees would not be allowed to withdraw funds before retirement; Upon retirement they will be able to withdraw up to 25%, investing the rest for 20 years or until age 80.
