New Amendment on Automatic Enrollment in Private Pension Insurance Has Been Released
The Regulation on Terms and Procedures for the enrolment to the individual pension savings insurance of the employees into a pension plan through their employers was published in the Official Gazette issued on 02 January 2017 under no 29936.
This Regulation intendeds to determine workplaces and employees to be admitted on the pension plan under the policy whereby employees are to be automatically admitted to a pension plan through their employers as well as to set the rate of employee contribution share to be deducted from the wages of the employees and to lay down such terms and procedures to enforce the Regulation.
This Regulation covers the following;
- Employees who are Turkish citizens or falls under the clause stated by Article 28 of Turkish Citizenship Code no 5901 (enacted on 29.05.2009) and who are employed as per subparagraphs (a) and (c) of the first paragraph of Article 4 of the Social Security Insurance and General Healthcare Insurance Law no 5510 (enacted on 31.05.2006);
- Those who are not older than forty-five years old and who have been employed as of the date on which the employer is admitted to the authorized systems;
- Those who are recruited after the employer is admitted into the the authorized systems, but who are not older than forty-five years at the time of recruitment;
- And employers who employ these employees.
Admission of the employers to the system shall depend on the number of employees as below:
- An employer with 1000 employees and above shall be admitted on 01.01.2017;
- An employer with such number of employees between 250 and 999 shall be admitted on 01.04.2017;
- An employer with such number of employees between 100 and 249 shall be admitted on 01.07.2017;
- An employer with such number of employees between 50 and 99 shall be admitted on 01.01.2018
- An employer with such number of employees between 10 and 49 shall be admitted on 01.07.2018
- An employer with such number of employees between 5 and 9 shall be admitted on 01.01.2019
Employee Contribution Share calculation: the total balance for the employee contribution share which shall be deducted by the employee from the wages of the employees covered on the system shall be three percent of the earnings serving as the basis for the Social Security Premiums or Pension Premiums.
You can view the full text in Turkish of the relevant Law from here.