Complementary Pension System (TES) Projected in the 2026 Presidential Annual Program

The 2026 Presidential Annual Program, published in the Official Gazette no. 33062 (1st duplicate issue), dated October 30, 2025, was prepared by the Ministry of Treasury and Finance together with the Presidency of Strategy and Budget. The program outlines the macroeconomic, fiscal, and sectoral policy priorities for the year, the measures and performance indicators associated with these policies, and the framework for their implementation. Within this scope, the 2026 targets concerning the Automatic Enrollment System (OKS) and the Complementary Pension System (TES), both directly affecting employees and employers, have been determined.

Targets Included in the Program

1. Establishment of the TES:

The Automatic Enrollment System will be transformed into a second-pillar pension system that also includes employer contributions, and the Complementary Pension System will be established.

2. Diversification of Funds:

In the OKS, it is aimed to increase the diversity of funds by considering participants’ different risk perceptions and investment preferences.

Although the legislative provisions governing the Automatic Enrollment System remain in effect as of today, there is not yet any binding regulation regarding the Complementary Pension System, into which the current system is expected to evolve.

Fundamentals of TES Reflected to the Public

Although not finalized yet, according to the information reflected to the public, the key elements of the Complementary Pension System are envisaged as follows:

• TES is intended to cover all employees.
• Pensioners, employers, and company partners are expected to remain outside the scope.
• Participation will be mandatory.
• Unlike OKS, voluntary withdrawal from TES will not be possible. Withdrawal will only be allowed under specific circumstances such as remaining in the system for a certain period, retirement, disability, or death.
• Contributions will be made to the system by employees, employers, and the state.

Although not yet confirmed, based on the rates reflected to the public:

• 3% of the employee’s monthly gross wage,
• 1% of the employee’s monthly gross wage to be contributed by the employer,
• And an additional contribution of 30% of the total accumulated contributions by the state are envisaged.

The system is planned to be implemented in the second quarter of 2026.

Assessment and Conclusion

Designed as a contribution-based system, the Complementary Pension System may serve as a long-term investment instrument and provide additional financial security for employees, if implemented effectively.

Although it will introduce an additional cost element for employers, it may also offer indirect benefits such as increasing employee retention, reducing turnover, and strengthening corporate loyalty.

In this regard, it is important for employers to begin preparatory work in advance for the TES implementation planned for the second quarter of 2026, and to plan the necessary technical and administrative adjustments, particularly within payroll and human resources processes.

Once the legislation concerning the system enters into force, the details of the matter will be further examined and shared by us in detail.

You can access the 2026 Presidential Annual Program here. (In Turkish)