How Will the SSI Incentive Be Applied for Retirees Under EYT?

With the Circular dated April 14, 2023, and numbered 2023/19, published by the Social Security Institution, the procedures and principles of the 5-point SSI premium incentive for retired employees within the scope of EYT have been announced.

Accordingly, to be able to benefit from this discount in the second paragraph of the temporary article 95 of Law No. 5510, the below conditions should be met;

1. Submission of the employee's SSI de-registration form due to old age or retirement pension request on or after 3 March 2023 and re-hire of the employee with the social security support premium on the same workplace within 30 days following the date of termination,
2. The employee's request for old age or retirement pension on or after 3 March 2023, and based on this request for the first time within the scope of the temporary article 95 of Law No. 5510 (In Turkish),
3. The workplace would need to be the private sector employer,
4. Submission of the monthly premium and service declaration/monthly withholding tax and premium service declaration within the legal period,
5. Payment of accrued premiums within the legal period,
6. The employer should not have any overdue SSI premiums, unemployment premiums, administrative fines and related delay penalties and late payment debts,
7. There should be no determination that the employer does not submit the employees' social security declarations or that the employer does not actually employ the people who have social security declarations,

Applicable Duration of the 5 Points Discount on The Social Security Support Premium Employer Portion

The 5-point discount will only be applicable at the last workplace where they last worked before they were granted old-age or retirement pension for the first time. In case of a termination of an employee who has retired within the scope of this Law, this employee cannot benefit from this discount even a re-hire at the same workplace again. So, this discount would only be applicable for one time at the same workplace.

Required Application to be Able to Benefit from the Discount

To be able to benefit from the 5-point discount, employers must apply through the e-SGK portal.

Applications will be made through the "15510- Sosyal Güvenlik Destek Primi İndirimi" menu on the "e-SGK/ İşveren/İşveren Sistemi (https://uyg.sgk.gov.tr/IsverenSistemi)/Teşvikten Faydalanılacak Sigortalı Tanımlama" screen, which can be accessed by logging in from the address www.sgk.gov.tr.

During the identification processes to be made through the mentioned screens, the below controls will be made by the system for the employee;

1. Whether there is a termination declaration with the exit code of "8-Emeklilik (Yaşlılık) veya Toptan Ödeme" after the effective date of the temporary article 95 of Law No. 5510,
2. Within 30 days following the date of termination / SSI de-registration, whether there is a hire declaration of the last workplace subject to social security support premium.

since the above-mentioned controls regarding the employees will be carried out electronically by the system, the identification process regarding the employee must be recorded in the system and there is no need to submit any documents to the social security provincial directorates/social security centers.

On the other hand, since it could not be determined during the definition whether the employees included in the scope of the Law No. 5510 have been granted old-age or retirement pensions within the scope of the first paragraph of the temporary article 95, the employees who benefited from the social security support premium discount after the incentive definition with the law number 15510 were made on and after 3 March 2023, however, it is later determined that the employee has requested an old-age or retirement pension and that for the first time, the employee has not been granted an old-age pension or pension, the employees who have unduly benefited from the discount will be followed up with an incorrect incentive list.

Other Issues

1. The employers, who send their monthly premium service documents/withholding tax and premium service declarations to the Social Security Institution by choosing the 15510 law number, will be checked by SSI every month whether they meet the conditions in the article; regarding the employers who benefited from the mentioned discount although they should not have benefited from it, the undue premium amounts will be collected from the employers with together the delay penalty and late fee.
2. In the event that a workplace benefiting from the related discount is transferred to a different social security center, it is possible to benefit from the discount in the mentioned article after the date of transfer, provided that the conditions specified in the mentioned article are met.
3. Since the workplace registration number will not change in case of transfer of the workplace within the scope of Law No. 5510, the discount can continue after the date of transfer, provided that the conditions specified in the mentioned article are met.
4. Since the workplace registration number will not change in case the types of companies change, merge or join another company, or if a new partner is recruited to ordinary companies, or if the ordinary partnership turns into a real person, the employee who benefited from the discount before these changes will be able to benefit from the discount after the change, provided that the conditions specified in the mentioned article are met.
5. If the mentioned retired employees start to work in another workplace/transfer to another workplace of the same employer, these employees cannot benefit from that discount due to the violation of the condition of continuing to work at the same workplace.
6. Employers who have benefited from the mentioned discount will not be able to consider the premiums paid by the Treasury as an expense or cost in their income and corporate tax applications.
7. For the principles and procedures not included in this Circular, the Circulars 2008/93, 2009/139, 2011/45, 2017/18, 2020/1, 2021/26, 2021/30, pertaining to subparagraph (ı) of the first paragraph of Article 81 of the Law No. 5510 will be applied.
8. In accordance with the provision in subparagraph (i) of Article 81 of Law No. 5510, it is not possible to benefit from a 5-point employer's portion discount in social security support premium for employees working abroad.
9. Funds, banks, insurance and reinsurance companies, chambers, stock exchanges, and unions employing personnel within the scope of temporary article 20 of Law No. 506 (In Turkish) will not be able to benefit from the five-point reduction in social security support premium.

You can reach the related Circular via the link. (In Turkish)

Should you have any queries or need further details, please contact your customer representative.