From 1 January 2017, employers must enrol all employees into an
Individual Pension System if they are under 45 year's old and
Turkish citizens. Employees can terminate their enrolment in the
pension scheme within two months of being notified of their
enrolment. Employees will receive a one-off 1,000 TL state
contribution if they choose to remain in the scheme. If an employee
terminates their enrolment, any contribution payments and
investment incomes will be returned to the employee within ten
The Law Amending the Law on the Individual Pension Savings and
Investment System ("Amendment Law") was published in
Official Gazette number 29812 on 25 August 2016. The Amendment Law
adds provisions about auto enrolment into the Law on the Individual
Pension Savings and Investment System No. 4632.
Employers will be liable for any monetary losses which arise due
to failing to duly transfer an employee's contribution payments
to the pension company, or from delayed transfers.
Individual pension companies must not deduct any fees from the
employees' savings, besides the fund management fee.
The Council of Ministers will determine further details for the
scheme, including which specific workplaces and employees it will
apply to. All other procedures and principles regarding the pension
system will be determined by the Under Secretariat of the
Please see this link for full text of the Amendment
Law (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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