Türkiye: New Retirement Legislation Eliminates Age Requirement for Some Employees
Principally in Turkey, three (3) basic conditions are sought to retire: age, number of premium payment days, and insurance period. The new legislation, which entered into force on 03.03.2023, states that persons who have started to work as insured before 08.09.1999 (inclusive) will be entitled to retirement, if they meet with conditions other than the age requirement. However, those who have started to work after 08.09.1999 cannot benefit from the new legislation.
Apart from the social insurance date, in order to be able to benefit from the new legislation, the employees are required to complete certain number of years as insured, and their premium payment days must be completed. Such requirements vary for women and men, and vary depending on the insurance starting period.
Principally, employers are not under the obligation to re-hire the employees who have resigned due to retirement. However, if an employee has retired in accordance with the new legislation and is re-hired again in their last workplace within thirty (30) days following their resignation, the amount corresponding to five (5) points of the employer’s social security support premium will be covered by the Treasury. If the insured person who benefits from this social security support premium employer’s share discount resigns after being re-hired, this discount will not be available again.
In order to retire as per the new legislation, employees are required to submit their letter of resignation as well as barcoded documents to the relevant department of their employer, which show when they can retire via the e-government system (known as “e-devlet“). Thereafter, the employer must pay the severance pay to the employees who have terminated their employment agreements due to retirement. Additionally, employers should also pay remaining employment receivables such as unused annual leaves, unpaid salaries, overtimes (if any).
Please be advised that employers cannot force their employees to retire or force them to start working again following their resignation. Similarly, employees cannot force their employers to re-hire them.
- Eligible employees who were first insured before the date 08.09.1999 (inclusive) can now resign due to retirement without meeting with the age requirement.
- Employers should pay severance and remaining employment receivables to retired employees.
- Employers are legally not required to re-hire employees who have retired.