Public social security system

I want to respond to a question about public social security system. The question is from Giovanni and he asks;
“Dear Mr. Sadettin,
I am a general manager of a multinational company that is going to move in Turkey. I am Italian, but I will be employed under a Turkish contract. What kind of pension contribution you have in Turkey? Public or Private? Is the company oblidged to contribute to employees pension? In Italy, the contribution is calculated on gross salary: 23% on the company, 9% on the employee. How does it work in Turkey?
Any help you can give would be more that appreciated. Many thanks, Giovanni.”
Dear Giovanni, the Turkish social system is based on 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 in social insurance coverage.
All employees must belong to a social security plan which 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% and employers pay 19.5% up to an upper earning level of TL 4.943,25 per month.
In terms of social security general rule for foreigners is coverage them by pension system. However, some exceptions are located in Law numbered 5510 for foreigners. According to arrangements these groups are not considered insured;
· Citizens of countries of which signed social security agreement with Turkey based on the reciprocity principal,
· The people who are sent to Turkey with a mission by and on behalf of an institution established abroad and can certify subjecting to insurance in their own country,
The self-employed people working on its behalf who are reside abroad and subject to social security legislation of their own country.
As it can be understand from these arrangements, Turkish citizenship is not required for to be social insured for foreigners. All foreigners outside of the above tree categories are considered social insured and they covered by pension system. If they fulfill necessary conditions (number of premium payments days and age), they eligible for pension payments.
Turkish ID number
The second question is about Turkish identity number. Shamir asks;
“Dear Orhan, do I have to get the Turkish ID number as a foreigner? Best regards, Shamir.”
Dear Shamir, the Turkish identity number has 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 it from this link; http://tckimlik.nvi.gov.tr/web/ForeignQueryIdentityNumber.aspx
11 Dec. 2010
For your questions: [email protected]
www.sadettinorhan.net
“Dear Mr. Sadettin,
I am a general manager of a multinational company that is going to move in Turkey. I am Italian, but I will be employed under a Turkish contract. What kind of pension contribution you have in Turkey? Public or Private? Is the company oblidged to contribute to employees pension? In Italy, the contribution is calculated on gross salary: 23% on the company, 9% on the employee. How does it work in Turkey?
Any help you can give would be more that appreciated. Many thanks, Giovanni.”
Dear Giovanni, the Turkish social system is based on 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 in social insurance coverage.
All employees must belong to a social security plan which 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% and employers pay 19.5% up to an upper earning level of TL 4.943,25 per month.
In terms of social security general rule for foreigners is coverage them by pension system. However, some exceptions are located in Law numbered 5510 for foreigners. According to arrangements these groups are not considered insured;
· Citizens of countries of which signed social security agreement with Turkey based on the reciprocity principal,
· The people who are sent to Turkey with a mission by and on behalf of an institution established abroad and can certify subjecting to insurance in their own country,
The self-employed people working on its behalf who are reside abroad and subject to social security legislation of their own country.
As it can be understand from these arrangements, Turkish citizenship is not required for to be social insured for foreigners. All foreigners outside of the above tree categories are considered social insured and they covered by pension system. If they fulfill necessary conditions (number of premium payments days and age), they eligible for pension payments.
Turkish ID number
The second question is about Turkish identity number. Shamir asks;
“Dear Orhan, do I have to get the Turkish ID number as a foreigner? Best regards, Shamir.”
Dear Shamir, the Turkish identity number has 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 it from this link; http://tckimlik.nvi.gov.tr/web/ForeignQueryIdentityNumber.aspx
11 Dec. 2010
For your questions: [email protected]
www.sadettinorhan.net