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01December2016

The Social Security Institution (SSI) Cap Coefficient Has Been Changed

The Social Security Institution (SSI) Cap Coefficient Has Been Changed

The Law on Amendments to the Public Fiscal Administration and Control numbered 6761 and other regarding regulations have come in force upon its publication in the Official Gazette numbered 259898 issued on November 24, 2016.

As stated in the Article 8 of the 6761 numbered Law and the term “6.5 times” mentioned in the Article 82 of the Law no. 5510 on Social Insurances and General Health Insurance Law no 5510 (enacted on May 31, .2016) has been re-evaluated and changed to “7.5 times”.

Also, the SSI has a lower base and an upper base for monthly payable premiums to the SSI for the employees.

  • Lower Base; means the minimum wage which, agreed to be as 1,647 TRY, for 2016. Monthly insurance premiums are calculated from this total amount as a minimum.
  • Upper base; is 6.5 times the minimum wage as of today. The SSI upper base applicable for 2016 is 10.705,50 TL (1647,00 x 6.5).

Pursuant to the said amendment to the Law, the SSI upper base will be 7.5 times the minimum wage, which will be e announced for 2017. This new amendment will be in effect from 01.01.2017.

The table below shows a comparison between the insurance premium totals calculated based on SSI upper base, which is equal to the 6.5 times/ 7.5 times the minimum wage applicable as of today, respectively.

SSI UPPER BASE ( 1.647 * 6.5 = 10.705,50 )   SSI UPPER BASE ( 1.647 * 7.5 = 12.352,50)
         
SSI Worker Share 14% 10.705,50 * %14 = 1.498,77   SSI Worker Share 14% 12.352,50 * %14 = 1.729,35
SSI Unemployment Worker Share 1% 10.705,50 * %1 = 107.05   SSI Unemployment Worker Share 1% 12.352,50 * %1 = 123.52
         
SSI Employer Share 20.5% 10.705,50 * %20.5 = 2.194,63   SSI Employer Share 20.5% 12.352,50 * %20.5 = 2.532,26
SSI Unemployment Employer Share 2% 10.705,50 * %2 = 214.11   SSI Unemployment Employer Share 2% 12.352,50* %2 = 247.05
         
TOTAL SSI PREMIUM 4.014,56   TOTAL SSI PREMIUM 4.632,18

As the table indicates, the coefficient that has been adjusted for the calculation of the SSI upper base will result in additional premium payment, which is 247.05 TL for the employee and of 370.58 TL for the employer. Please note that the "upper base" has been taken in notice for the calculation.

Please click here to read the full Turkish text of the Law.

Written by Fırat Oktürk, Posted in Social Security Law and Legislation

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About The Author

Fırat Oktürk

Software Development Project Consultant
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