In Turkey, it is mandatory to register the employee for a private pension scheme equal to 3% of their salary.
After one month of employment, the employee can opt out.
The Turkish government additionally contributes 25% towards private pension contributions (subject to a maximum).
The Turkish Social Security Institution (SSI) – Sosyal Güvenlik Kurumu (SGK), was established in 2006. The system is similar to a Bismarck model, whereby premiums are paid into one collective fund by employers and employees and then reallocated to cover:
- short-term social security
- disability, old age and death
- health insurance;
Social security contributions are considerably high in Turkey but cover a generous range of benefits.
All non-national employees are eligible for social security benefits provided that they pay the contributions and meet the necessary requirements.
Employers are required to register all new starts with the SSI before their start date.