In Turkey, in a general letter dated September 22, 2023, numbered E-83604451-207.02-80971419, issued by the SSI Social Security Institution in Turkish, there has been uncertainty regarding whether individuals who were registered with the Social Security Institution before September 8, 1999, and meet certain criteria related to insurance period, the number of premium payment days, and age conditions, can avail themselves of the 5-point social security premium incentive. The letter also mentions that consultations have been made with the Ministry of Treasury and Finance, which funds this incentive, to clarify this matter.
A subsequent letter dated September 13, 2023, numbered 2458737, received from the General Directorate of Public Financial Management and Transformation of the Ministry of Treasury and Finance, provided clarification. It stated that the purpose of the aforementioned premium incentive, as stated in the rationale of the relevant article, is to prevent potential employment loss resulting from the granting of old-age pensions without considering the age requirement. This applies to individuals who began working as insured individuals before September 8, 1999, as specified in temporary Article 95 added to Law No. 5510. The letter explicitly mentioned that the scope of this social security premium incentive is limited to those who are granted old-age pensions as per the first paragraph of the same article. Furthermore, individuals registered with the SSI in Turkey before September 8, 1999, who meet the age requirement and receive old-age pensions according to the relevant legislation, are not eligible for this incentive.
In conclusion, it was clarified that the 5-point social security premium incentive is exclusively applicable to individuals within the EYT scope who retire without regard to the age requirement. Those who were registered with the SSI in Turkey before September 8, 1999, meet the age requirement, and other retirees are not eligible to benefit from this incentive.
If you have any questions or require additional information, please do not hesitate to reach out to your customer representative.
Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.