Türkiye: Social Security Institution’s Directorate General of Insurance Premiums has Published a Circular Letter in accordance with the New Retirement Legislation

Authors: Ipek Unlu Tik and A. Kaan Baser

Retired employees in Türkiye can continue to receive retirement pensions even if they start working after their retirement. However, the employers are required to pay social security support premiums for such employees.

In accordance with the Law Numbered 7438, insured persons who were not entitled to retirement solely due to their age are now able to benefit from old-age or retirement pension if they meet conditions other than age. Same law also states that an amount corresponding to five (5) points of the employer’s social security support premium will be covered by the Treasury; if an employee has retired in accordance with the new retirement legislation and is re-hired.

Social Security Institution’s Directorate General of Insurance Premiums has published the Circular Letter numbered 2023/19 in order to regulate the conditions of the afore-mentioned five (5)-point support. Main conditions which must be cumulatively met are as follows:

• Employees should resign due to retirement and the employee should submit the declaration of termination to the Social Security Institutions either on or after 03.03.2023,
• Employees should be re-hired again by their last employer within thirty (30) days following their resignation,
• The workplace must belong to a private sector employer,
• Employers must submit the tax and premium declarations within its legal period,
• Employers must pay the accrued premiums within its legal period,
• Employers must not have any premium debts or administrative fines which are overdue,
• Employers must not have any employee who is not registered as insured,
• Employers must not register any person(s) under the Social Security Institution who are actually not working.

If all of the conditions set forth by the Directorate General of Insurance Premiums are met; the amount corresponding to five (5) points of the employer’s social security support premium will be covered by the Treasury.

The Treasury’s support will continue until the employee resigns from his/her position. However, if the employee resigns after being re-hired, this discount will not be available again; even if such employee starts working again.

Please be advised that principally, employers are not under the obligation to re-hire the employees who have resigned due to retirement. However, the new legislation and the Circular Letter provides an incentive for the employers to re-hire their retired employees. It is also worth to mention 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.

Key Points

• Eligible employees can resign due to retirement without meeting with the age requirement.
• Employers who re-hire their retired employees must pay social security support premiums.
• The Treasury will provide a five (5)-point support on behalf of employers regarding the social security support premiums.
• Social Security Institution’s Directorate General of Insurance Premiums has published the Circular Letter numbered 2023/19 in order to regulate the conditions of the afore-mentioned five (5)-point support.