Turkey
Appendix to MISSCEO tables
on social protection of self-employed
(updated 2019)
The information on the social protection of the self-employed gives a short overview of the situation as regards the coverage, in particular, ways in which the arrangements for the self-employed differ from those for employees. The texts can refer to the MISSCEO comparative tables in case the schemes for the self-employed are similar to those for employees.
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Definition: a. What is the definition of self-employment in respect of the social protection system in your country? Among the village and quarter headmen and individuals working on his/her own name and account without being bound by a service contract; 1) Who are income tax payers in real or ordinary procedure due to commercial earnings or self - employment income, 2) Who are exempt from income tax and are registered to the registry of traders and artisans, 3) Associates of joint - stock companies who members to board of directors, active partners of commandite companies of which capitals are divided into shares, all partners of other company and maritime joint - adventures, 4) Who are active in agricultural activities, b. How are self-employed distinguished from employees in the social protection system?
Their eligibility conditions for benefits differ in terms of Days of Contribution requirements. For instance; a self-employed person has to pay contributions for 9000 days, (for an employee 7200 days of service is required) c. What is the main legislation which defines the distinction between the self-employed and employees for purposes of social protection coverage?
d. Are different types of self-employed distinguished in the social protection legislation? Please refer to information given in paragraph (a) above. e. Are any specific “new” forms of self-employment (such as working on a sub-contracting basis for a single employer or group of employers or working independently on a part-time or casual basis) that differ from more “traditional” forms recognized in the social protection legislation? No |
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Coverage: a. Are the self-employed covered by the general scheme which also covers employees or by a different specific scheme? If no there is no scheme for the self-employed, please state “no scheme for the self-employed”. No. General Scheme covers employers, employees, and civil servants. The self-employed are a part of insurance based general scheme. The unique Social Security Institution collects contributions from and pays benefits to all sides. b. Is the system/scheme for self-employed universal/residence based or insurance based? Is the scheme compulsory or voluntary?
c. If the scheme is insurance based, are there any conditions which the self-employed have to comply with (eg earnings above a minimum level, specified n° of hours per week ..) Eligibility for old age benefits requires 9000 days of contributions. They have to pay monthly contributions between defined minimum and a maximum wage level. They have to pay full 30 days of contributions per month. d. Is the way that contributions are calculated and the rate applied the same or different from those of employees? If different, please give brief details. The amount of monthly contribution is based on declaration between a law defined minimum and a maximum wage level. The rates are the same as those of employees. They have to pay complete 30 days of contributions per month. Eligibility for old age benefits requires 7200 days of contribution for employees but 9000 days for the self-employed. |
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Financing: Please indicate for each scheme the source of finance (social contributions, general taxation or other public funding) The scheme is funded by the contributions. Social security contributions are payed to the SSI by the insured. |
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Conditions for access: Are the conditions for entitlement to benefits the same as for employees or different? If different please given brief details.
Eligibility for old age benefits requires 7200 days of contribution for employees but 9000 days for the self-employed. |
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Benefits (amounts, duration, co-payments): Are the benefits the same as those for employees or different in terms of level, duration and any co-payments required? If different, please give brief details. |
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Taxation and social contributions on benefits: a. Is the tax regime applied to benefits for the self-employed the same as for employees or different? If different, please give brief details. b. Are the regulations applying to social contributions payable on benefits for the self-employed the same as for employees or different? If different, please give brief details. |
Turkey – Additional information to Appendix on social protection of self-employed
Turkey
Basic principle
Social Insurance and Universal Health Insurance Law No:5510 came into force as of October 2008. According to the new Law, entire population is covered by a unique social security law.
The self employed and their dependents are covered by a unique social security system as
the other insured.
Funding
The scheme is funded by the contributions mainly by the insured.
Contribution is made based on the gross income. 20 % of is paid for old age, invalidity and survivors benefit (long term insurance); 2% is paid for short term insurance and 12,5% for universal health insurance.
Total long term insurance premiums are %20 of the declared earnings by the insured. Insured people who pays insurance premiums regularly, pays %15 premium rate for long term insurance premiums instead of % 20. The remaining %5 of the premium rates are provided by state contributions.
Health Insurance
Obligatory for the self-employed.
The following persons are entitled to sickness benefits in kind:
• the insured,
• his or her spouse, children and dependent
parents,
• recipients of an old-age, invalidity or survivor’s pension and their dependants.
Insured persons should contribute at least 30 days in last one year to get entitled to health care services. Except for emergency, insured person’s premium debt must be less than 60 days.
Invalidity
In order to get invalidity pension, insured should have an insurance period of minimum 10 years and pay contribution days of minimum 1800 days. In case the insured person is in need of permanent care of another person, he/she should have paid contribution days of minimum 1800 days only with no insurance period requirement.
The minimum Invalidity pension for workers is 1166,67 TL, the maximum invalidity pension is 5170,35 TL for 2019.
Old-age
To qualify for a full old-age pension, the insured must have reached the age of 60 for men and 58 for women and have contributed for at least 9000 days.
The minimum old age pension for 2019 is 1166,67 TL and maximum old age pension for the same period is 5657,00 TL.
Survivors
Survivors benefit includes, survivor pension, lump sum payment, marriage allowance for the
daughter getting pension, funeral payment.
For the dependants of the insured to qualify for benefits, the insured must have paid contributions for the five years preceding the death with no debt related to social insurance. In case of any debt, dependants may acquire the benefit by paying for the debt.
Distribution of the pension is:
50% for widow or widower (in case widow/er is not covered by any insurance scheme and with
no child, the amount rises to 75%).
% 25 for children below 18 (25 for studying at university), Single daughter (regardless of their
age)
In some conditions parents of insured receive benefit.
Family benefits
There is no insurance scheme for the self-employed that includes family benefits.
Unemployment
There is no unemployment insurance scheme for the self-employed.
Long-term care
This system does not exist in Turkey.
1 Insurance period is the period starting from the first contributory day to the date of application for a benefit irrespective of contributions made.