Our Payroll Turkey company presents you an article about auto enrolment private pension in Turkey.
Turkish citizen employees who are under 45 years of age and working for a wage under a service contract will be automatically enrolled in a pension plan arranged by employers. Participant employees have the right of withdrawal from the system within two months. Workplaces will start to enter into contracts with pension companies and offer pension plans to the employees in the scope of Law on different dates, depending on the number of employees.
Auto Enrollment Private Pension details and Payroll in Turkey services
Workplace Number of Staff
Private Pension Start Date
1000 and over – 1st January 2017
250 to 1000 – 1st April 2017
100 to 249 – 1st July 2017
50 to 99 – 1st January 2018
10 to 49 – 1st July 2018
5 to 9 – 1st January 2019
Participant’s minimum contribution amount will be 3% of their earning subject to premium. It is possible to contribute more than this amount.
Employers who don’t make any contributions must calculate and deduct the participants contribution and transfer the funds to the insurance company on the day following payday at the latest. Employers will be responsible for any loss on employee’s saving, arising from late or missed transfer of contributions Digits after the comma will not be taken into calculation.
Deduction will be made from the net salary of employees.
The voluntary Turkish private pension system (individual retirement insurance) is a defined contribution system, intended to be complementary to the mandatory state social security scheme, which provides retirement earnings to participants on a PAYE basis.
The participants are entitled to a retirement benefit if both of the following two conditions are met (women having reached 58 years old, and men who reached 60 years old, and having made contributions to the pension scheme for a minimum of 7200 working days).
More informations about Payroll Turkey and Auto Enrolment Private Pension on our website.