Public social security system
Answers to readers' questions regarding various aspects of living and working in Turkey.
I want to respond to a question about the public social security system. The question is from Giovanni. He asks:
“Dear Mr. Sadettin,
I am a general manager of a multinational company that is going to move to Turkey. I am Italian, but I will be employed under a Turkish contract. What kind of pension contribution do you have in Turkey? Public or Private? Is the company obliged to contribute to employee pensions? In Italy, the contribution is calculated by gross salary: 23 percent from the company, 9 percent from the employee. How does it work in Turkey?
Any help you can give would be more than appreciated. Many thanks, Giovanni.”
Dear Giovanni, the Turkish social security system is based on the public system. Employees (including foreign nationals) aged 18 or older working under a service contract in the public or private sector, including civil servants and self-employed persons, are covered by social insurance.
All employees must belong to a social security plan that includes insurance for work-related accidents and illness, sickness, pregnancy, disability, old age and death. Contributions as a percentage of gross salary are payable by individual employees and employers. Employee contributions are deductible in determining taxable income. Currently (2010) employees pay 14 percent and employers pay 19.5 percent, up to an upper earning level of 4,943.25 Turkish Liras per month.
In terms of social security, the general rule for foreigners is that they are covered by the pension system. However, some exceptions for foreigners can be found in law 5510. According to current arrangements, these groups are not considered insured:
-Citizens of countries that have signed social security agreements with Turkey based on the reciprocity principal;
-Anyone sent to Turkey with a mission by and on behalf of an institution established abroad and can certify being subject to insurance in their own country;
-Self-employed people working on their own behalf who reside abroad and are subject to the social security legislation of their own country.
As it can be understand from these arrangements Turkish citizenship is not required by foreigners in order to be insured. All foreigners outside the above three categories are considered insured and are covered by the pension system. If they fulfill certain necessary conditions (such as the number of premium payments, days and age), they are eligible for pension payments.
Turkish ID number
The second question is about Turkish identity numbers. Shamir asks:
“Dear Orhan, do I have to get a Turkish ID number as a foreigner? Best regards, Shamir.”
Dear Shamir, Turkish identity numbers have been required for foreigners for many formalities in daily life since October 2006. Since then, according to the relevant legislation, both Turkish nationals and foreigners have to get a Turkish identity number. You can learn more from this link: http://tckimlik.nvi.gov.tr/web/ForeignQueryIdentityNumber.aspx
Hurriyet Daily News/10.12.2010
I want to respond to a question about the public social security system. The question is from Giovanni. He asks:
“Dear Mr. Sadettin,
I am a general manager of a multinational company that is going to move to Turkey. I am Italian, but I will be employed under a Turkish contract. What kind of pension contribution do you have in Turkey? Public or Private? Is the company obliged to contribute to employee pensions? In Italy, the contribution is calculated by gross salary: 23 percent from the company, 9 percent from the employee. How does it work in Turkey?
Any help you can give would be more than appreciated. Many thanks, Giovanni.”
Dear Giovanni, the Turkish social security system is based on the public system. Employees (including foreign nationals) aged 18 or older working under a service contract in the public or private sector, including civil servants and self-employed persons, are covered by social insurance.
All employees must belong to a social security plan that includes insurance for work-related accidents and illness, sickness, pregnancy, disability, old age and death. Contributions as a percentage of gross salary are payable by individual employees and employers. Employee contributions are deductible in determining taxable income. Currently (2010) employees pay 14 percent and employers pay 19.5 percent, up to an upper earning level of 4,943.25 Turkish Liras per month.
In terms of social security, the general rule for foreigners is that they are covered by the pension system. However, some exceptions for foreigners can be found in law 5510. According to current arrangements, these groups are not considered insured:
-Citizens of countries that have signed social security agreements with Turkey based on the reciprocity principal;
-Anyone sent to Turkey with a mission by and on behalf of an institution established abroad and can certify being subject to insurance in their own country;
-Self-employed people working on their own behalf who reside abroad and are subject to the social security legislation of their own country.
As it can be understand from these arrangements Turkish citizenship is not required by foreigners in order to be insured. All foreigners outside the above three categories are considered insured and are covered by the pension system. If they fulfill certain necessary conditions (such as the number of premium payments, days and age), they are eligible for pension payments.
Turkish ID number
The second question is about Turkish identity numbers. Shamir asks:
“Dear Orhan, do I have to get a Turkish ID number as a foreigner? Best regards, Shamir.”
Dear Shamir, Turkish identity numbers have been required for foreigners for many formalities in daily life since October 2006. Since then, according to the relevant legislation, both Turkish nationals and foreigners have to get a Turkish identity number. You can learn more from this link: http://tckimlik.nvi.gov.tr/web/ForeignQueryIdentityNumber.aspx
Hurriyet Daily News/10.12.2010
