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SOCIAL SECURITY SYSTEM IN TURKEY. CONTENTS. Institutional Framework Social Security Schemes Statistical Data about the Turkish Social Security System. EU and Foreign Relations Department. INSTITUTIONAL FRAMEWORK. EU and Foreign Relations Department. Institutional Framework.

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CONTENTS

  • Institutional Framework
  • Social Security Schemes
  • Statistical Data about the Turkish Social Security System

EU and Foreign Relations Department

institutional framework
INSTITUTIONAL FRAMEWORK

EU and Foreign Relations Department

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Institutional Framework

  • Summary of the old structure
  • Legal basis
  • Organizational structure

EU and Foreign Relations Department

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Summary of the Institutional Structure of the Old System (1- Actors)‏

  • Social Insurance Institution (SSK) – Workers employed under a service contract
  • Bağ-Kur –Self-employed
  • Retirement Fund (Emekli Sandigi) - Civil Servants
  • Ministry of Finance and Ministry of Health
  • Public Bodies (healthcare for civil servants)‏

EU and Foreign Relations Department

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SSK

Bağ-Kur

Retirement Fund

MoF and MoH

Public Bodies

Old Age

Old Age

Old Age

Invalidity

Invalidity

Invalidity

Survivorship

Survivorship

Survivorship

Occ. Disease

Work Accident

The agricultural employed are not covered

Maternity

Maternity –no cash benefit (through health care system)‏

Maternity

(no contribution is made by the insured – health care costs)‏

Maternity for civil

servants

(no contribution is

made by the insured)‏

Health Care

Health Care

Health Care for pensioners

Non-Contributory Payment

Health Care for civil servants

Summary of the Institutional Structure of the Old System (2)‏

EU and Foreign Relations Department

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Legal Basis (1)

  • The Constitution of the Republic of Turkey

Article No 60: Everyone has the right to social security.

The state shall take the necessary measures and establish the organization for the provision of social security.

  • Social Security Institution Law No: 5502
  • Social Insurance and Universal Health Insurance Law No: 5510
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EU andForeignRelationsDepartment

Legal Basis (2)

  • ContributorySystem:
      • Social Insurance and Universal Health Insurance Law No:5510 (as of 1st October 2008)
      • Law on Unemployment Insurance No. 4447.
      • Obsolete Laws of which articles are still in effect
        • Social Insurance Law No:506 and Social Insurance Law For Agricultural Employees No. 2925
        • Social Insurance Law No: 1479 for the Craftsmen and Artisans and Other Self Employers
        • Law on Retirement Fund No. 5434 (for civil servants)
  • NonContributorySystem:
    • Law on payment of pension to the old aged persons (65 years old and over) who are destitute No. 2022
    • Law on Social Assistance and Solidarity Fund No. 3294
    • General Directorate for Social Services and Child Protection Law No. 2828
    • Law on issuance of Green Cards for the citizens who are incapable to pay for Health Care Services No. 3816
social security schemes
SOCIAL SECURITY SCHEMES

EU and Foreign Relations Department

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Social Security Schemes

  • Old Age,
  • Invalidity,
  • Survivorship,
  • Work Accident and occupational diseases,
  • Health Care,
  • Unemployment (Executed by Iskur),
  • Non-contributory payments

EU and Foreign Relations Department

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Scope

Employed, self employed, civil servants

Conditions

Age : 65

(gradually increasing from 58 for woman and 60 for man as of 2036)‏

Contribution period : contributory period of 9000 days for civil servants and self employed; 7200 days for workers

Benefits

Old age pension, lump sum payment

Old Age

EU and Foreign Relations Department

special conditions for entitlement to old age pension i
Special conditions for entitlement to old age pension (I)
  • Workerswho had alreadylost 60% of theirworkingcapacitybeforetheystartedworking (whowereinvalid at thedatetheybeganworking) areentitledtoreceiveoldagepensioniftheyhavecompleted

- 15 years of insuredworkandpayedinvalidity, oldageandsurvivorsinsurancepremiumsfor 3960 days.

- 50 % to 59 % of theirworkingcapacitybeforetheystartedworking (whowereinvalid at thedatetheybeganworking) areentitledtoreceiveoldagepensioniftheyhavecompleted 16 years of insuredworkandpayedinvalidity, oldageandsurvivorsinsurancepremiumsfor 4320 days.

    - 40% to 49% of theirworkingcapacitybeforetheystartedworking (whowereinvalid at thedatetheybeganworking) areentitledtoreceiveoldagepensioniftheyhavecompleted 18 yearsof insuredworkandpayedinvalidity, oldageandsurvivorsinsurancepremiumsfor 4680 days.

special conditions for entitlement to old age pension ii
Special conditions for entitlement to old age pension (II)

- Theage limit for mine workers, workingregularlyoralternately in minesregisteredbytheMinistryfor minimum 20 years, is 55 years of age. Mine workersmustcomplete minimum 7200 premiumdays.

- Thosewhohavecompleted 55 years of ageandaremedicallydeterminedto be permaturelyagedareentitledtoreceiveoldagepension in casetheyfulfilltheotherrequirements.

- Total workingperiods of femaleworkerswhohave a disabledchildareincreasedby 0,25. Also, thisperiod is deductedfromtheage limit.

pension allocation formula
Department of EU and Foreign RelationsPension allocation formula

Pension = Averagemonthlyearning x replacement rate

- Pastannualearnings on whichpremiumsarebasedareupdatedusingtheupdatecoeffiecientpertainingtoeachyear, untilthepresentvalue of allpastearnings at the time of thepensionclaim is found.

-(Updatedpastearnings + thecurrentearnings ) / total number of premiumdays = averagedailyearning

- Averagedailyearnings x 30= Averagemothlyearnings

replacement rates
Department of EU and Foreign RelationsReplacement rates
  • Thereplacement rate is 2% forevery 360 dayscoveredbyoldage, invalidityandsurvivorsinsurance. Periodslessthan 360 daysaretakenintoaccountproportionally.
  • Theoldage, invalidityorsurvivorspensionallocatedaccordingtothisformulacannot be lessthan 35% of minimum wagepertainingtotheJanuary of thetheyear of deathorpensionclaim. (40%, iftheinsured has a spouseor a childunder his responsibility)
  • Pensionsareincreasedbythe rate of inflation in thepast 6 months
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Scope

Employed, self employed, civil servants

Conditions

minimum 60% loss of working capacity or earning capacity after entry into the insurance system.

Contribution period:Minimum 10 years of insured employment and 1800 premimum days.

10 years of insured employment is not sought for those who need constant care by others.

For the self employed, no premium debts including UHI premiums

* Reduction is made for the disabled persons which are not entitled to Invalidity Pension

Invalidity pension

Benefits

Invalidity

EU and Foreign Relations Department

duty invalidity civil servants only
Duty Invalidity (Civil servants only)
  • Civilservantswhobecomeinvalidduringthecourse of theirduty, or as a result of theiractionswhichaimtoprotectthierinstiution, or on a vehicleprovidedbytheirinstitutionfortravellingtoorfromtheworkplace, ordueto an accidentoccuring at theworkplacearedeemed as invalidduetoduty.
  • Dutyinvaliditypension is calculated on thebasis of 30 years of service, irrespective of therealperiod, andincreased on thebasis of thedegree of theinvalidity.

Degree of invalidityIncrease rate

                1                                                               % 30

                 2                                                               % 23

                 3                                                               % 15

                 4                                                               % 7

                 5                                                               % 3

                 6                                                               % 2

replacement rates1
Replacement rates
  • Forworkerswithupto 7200 premiumdays; 40%
  • For self employedwithupto 9000 premimumdays 50%
  • 10% increase, in casetheinsuredperson in need of constantcarebyothers
  • Forbothworkersand self employed, 2 pointsincreaseforeveryextra 360 daysover 7200 and 9000 respectively. Extraeriodsshorterthan 360 dayswill be calculatedproportionally.
  • Replacement rate cannotexceed 90%.
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Personal Scope

Widow/ers, children and parents of the employed, self employed, civil servants

Conditions

Contribution period: 1800 days of contribution for workers, civil servants and self employed. Survivors of workers can apply for pension if the deceased had been insured for 5 years and had 900 days of premium payment excepting the service debt periods.

Benefits

Old age pension, lump sum payment, marriage payment and funeral payment.

Survivorship

EU and Foreign Relations Department

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Personal Scope

  • Turkish citizens residing in Turkey,
  • Persons employed in Turkey and transferred to abroad for business and their dependants,
  • Refugees and stateless persons,
  • Foreigners residing in Turkey and not covered by insurance according to the Legislation of another country
  • Contribution:Minimum 30 contributory period of days the scheme in preceding year and not having contribution related dept to the Institution in preceding 60 days
  • Exemptions From Conditions:
  • Children under 18
  • Delivery of urgent health services
  • Treatment of communicable diseases
  • Work Accidents and occupational diseases
  • Protective health services to prevent addiction to harmful substances (such as smoking etc.)
  • Maternity
  • The persons in the need of medical care from another person
  • In case of disaster, war and lock – out

Conditions

Health Care‏

EU and Foreign Relations Department

payg system
PAYG system

Largedeficits

- arrears

  • informality

lowactive/passiveratio in spite of favourabledemography

- earlypensionage

statistical data for turkish social security system
STATISTICAL DATA FOR TURKISH SOCIAL SECURITY SYSTEM

EU and Foreign Relations Department

statistical data for turkish social security system1
Statistical Data for Turkish Social Security System
  • Population Covered by Social Security Schemes
  • Financial Structure

EU and Foreign Relations Department

population covered by ssi
Population Covered by SSI

EU and Foreign Relations Department

financial structure
Financial Structure

1 € = 2.27 TL

EU and Foreign Relations Department

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Department of EU andForeignRelations

Thanks for your attention

For further information

www.sgk.gov.tr

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