Turkey – Cancellation of incentive pay on EYT pension and increase in short-term insurance rate – 1 September 2024

On 02 August 2024, Turkey made announcement to cancel the incentive pay on EYT (Emeklilikte Yaşa Takılanlar) pension and increase the short-term insurance rates.

Cancellation of the incentive pay on EYT pension

According to Social Security and General Health Insurance Law No. 5510, the incentive of 5% discount on the employer’s social security support premium for the employee who retires within the scope of EYT (Emeklilikte Yaşa Takılanlar) and who starts working within 30 days at the same workplace, as specified in the second paragraph of Article 95, has been repealed starting from the 1st September.

Increase in short-term insurance rate

As per the Law on Amendments to Tax Laws No. 7524 and Certain Laws and Decree Law No. 375, the short-term insurance premium branch rate of SGK, as given in subparagraph (c) of the first paragraph of Article 81 of the Social Security and General Health Insurance Law No. 5510, has been increased from 2% to 2.25%.

The above changes are effective 1 September 2024.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.