ARTICLE
19 September 2017

Turkish Constitutional Court: Treasury Should Pay Inflation-Related Losses To State Employees Caused By Delays In Paying Retirement Bonus

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In Turkey, employees of social security institutions are entitled to receive retirement bonuses after working for certain periods.
Turkey Employment and HR

In Turkey, employees of social security institutions are entitled to receive retirement bonuses after working for certain periods. The Constitutional Court recently ruled that the loss in value caused by inflation between the date an employee is entitled to receive a retirement bonus and the actual payment date, violates employees' property rights and constitutes an excessive and extraordinary burden.

The Constitutional Court unanimously ruled that the lost value should be considered within the scope property rights. Accordingly, it ruled that the treasury should pay compensation to employee for the lost value.

Please see this link for the full text of the Constitutional Court's decision (only available in Turkish).

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