All employees will have 3 percent deducted from their salaries every month! The new system will be mandatory

High inflation in Turkey is causing millions of retirees to have financial difficulties. Despite all demands, the government, which has not increased the expected pensions, is looking for a 'side-line' to fix the retirement system, while details about the 'Supplementary Retirement System' (TES), which has been a public debate for a while, have become clear.

ALL SALARIES WILL BE DEDUCTIBLE

In the regulation currently implemented as 'Individual Retirement Insurance' (BES), many employees are included in the retirement system under the name of 'automatic participation' and their salaries are generally deducted by 3%. However, the fact that this implemented system is not mandatory causes many employees who have financial difficulties to leave the system in order not to have their salaries deducted.

According to Sabah's report; Although TES, which will be put into effect in 2025, has similar features to the Individual Retirement System in terms of structure, exits from this system will not be allowed. With TES, which will be mandatory for all employees and employers to participate, it is planned to cut the salaries of workers, tradesmen and civil servants by at least 3 percent.

IT WILL BE CALCULATED AS THE SECOND RETIREMENT PAYMENT

The system to be implemented will be completely separate from the current retirement system, the Social Security Institution (SGK). Retirees will continue to receive their monthly payments from the SGK in the same way, and what they have saved in this system will provide them with a supplementary payment opportunity so that their salaries do not remain low.

With the automatic participation applied today, premiums are accumulated by deducting at least 3 percent from the salaries of employees in the BES system every month. However, the system is not mandatory. Employees can leave the system if they wish. The new system will be mandatory and retirement will be earned at the end of the period.

HOW MANY YEARS SHOULD WE WAIT FOR RETIREMENT?

There will be a tripartite structure in the new TES system that is being prepared. According to the model, the person will pay at least 3 percent of their gross salary while the employer will contribute at the same rate. The state will also contribute 30 percent of the premium amount paid. In the system that will be put into effect, the retirement conditions have been determined as at least 10 years and 56 years of age. Those who work in the system for 10 years will retire when they reach the age of 56. The system included in the Medium Term Program is expected to officially start as of 2025.