Turkish Social Security System

A-) LONG-TERM INSURANCE

The long-term insurance branches in Turkey include services related to invalidity, old-age, and survivors’ benefits. Here’s a detailed overview:

1- Old-Age Insurance

Old-age insurance is a mandatory and contributory social insurance that provides an old-age pension when insurance holders reach a specific age. The main benefits under this insurance are the old-age pension and old-age lump-sum payments.

• Old-Age Pension: For individuals insured for the first time under Law No: 5510, the old-age pension is granted if:
  • Women are over 58 years old, and men are over 60 years old.
  • A minimum of 9000 days of premiums for invalidity, old-age, and survivors insurance are paid.
  • For those on service contracts, the required number of premium days is reduced to 7200.From 2036 to 2048, the age requirement will gradually increase to 65 for both men and women.
  • Special provisions exist for older-aged pensioners, those with pre-existing disabilities, severely disabled individuals, mineworkers, and those with early aging diseases. They can receive a pension with a minimum of 5400 premium days and an adjusted age limit, but not exceeding 65 years.
  • Female insurance holders with permanently disabled children can request retirement or old-age pensions, and one-fourth of premium days paid post-law enactment will be added to their total premium days and deducted from the retirement age limit.

• Old-Age Lump-Sum Payment and Revival: Insurance holders who do not qualify for an invalidity or old-age pension, despite meeting the age requirement, can receive a lump-sum payment. This payment includes all the premiums paid, updated annually. If these individuals re-enter the insurance system, they can revive their previous service by repaying the lump-sum amount, updated with the annual coefficient.

2- Disability Insurance

Invalidity insurance is a mandatory social insurance providing an invalidity pension to those who lose at least 60% of their working capacity or earning power due to work accidents or occupational diseases.

• Disability Pension: To qualify for an invalidity pension:
  • The insurance holder must be deemed disabled by the Health Committee.
  • The individual must have been insured for at least ten years and have paid 1800 days of premiums. If the individual requires permanent care, the 1800 days must be notified without the ten-year requirement.
  • A written request must be submitted to the Institution after quitting work due to invalidity, with all premiums paid.

3- Survivors’ Insurance

Survivors’ insurance is compulsory and contributory, providing a monthly pension to the survivors (spouse, children, parents) of deceased insurance holders. Benefits include survivors’ pensions, death grants, marriage allowances, and funeral allowances.

• Survivors’ Pension: Survivors’ pensions are payable if:
  • A minimum of 1800 days of premiums are notified, or there is an insurance status of at least five years with 900 days of premiums paid.
  • The deceased was receiving or entitled to invalidity, duty disability, or old-age pension.
• Pension distribution:
  • 50% to the widow, or 75% if the widow has no income or pension.
  • 25% each to children meeting specific age and educational criteria, or 50% if they are orphans.
  • 25% to parents if there are no other beneficiaries.

The total pension amount cannot exceed the deceased’s pension; reductions are applied if necessary.

• Death Grant and Revival: If survivors do not qualify for a pension, they receive a lump-sum payment calculated based on the premiums paid.
• Marriage and Funeral Allowances: Marriage allowance: Two years of pension, paid once, to daughters whose pensions terminate upon marriage.
  • Funeral allowance: Paid to the survivors if the deceased had a minimum of 360 days of premiums and was receiving or entitled to a pension.

B-) SHORT-TERM INSURANCES:

The Turkish Social Security System provides both treatment and cash benefits under its short-term insurance branches, which include work accident and occupational disease, sickness, and maternity insurance.

While treatment benefits are covered by Universal Health Insurance, cash benefits fall under short-term insurances.

1- Occupational Accident & Occupational Disease Insurance:

Work accidents are incidents that occur:

• At the workplace.
• Due to the work carried out by the employer or the insurance holder working on their own account.
• When an insurance holder is posted to another location outside the workplace.
• During breastfeeding periods as per labor legislation.
  During the commute between workplace and home using a vehicle provided by the employer.
  • Work accidents must be reported:
    • By employers for those under a service contract to local law enforcement immediately and to the Institution within 3 workdays.

• • • By self-employed insurance holders directly to the Institution within 3 workdays after their health allows, not exceeding one month.
      Occupational diseases refer to temporary or permanent conditions caused by the nature of the work or working conditions.

• Temporary Incapacity Allowance:Temporary incapacity allowance is provided based on a rest report by authorized medical professionals:
  • Daily allowance for temporary incapacity due to work accidents or occupational diseases.
  • From the third day of incapacity for those under a service contract or subject to sickness insurance, provided 90 days of short-term insurance premiums are paid within one year before incapacity.
  • During inpatient treatment or rest due to work accidents, occupational diseases, or maternity for self-employed individuals, provided all related premiums are paid.

The allowance is half of the daily earning for inpatient treatments and two-thirds for outpatient treatments. If multiple conditions apply, the highest benefit level is used.

• Permanent Incapacity Income: Insurance holders whose earning capacity is reduced by 10% due to work accidents or occupational diseases are eligible for permanent incapacity income. The income is calculated based on the degree of incapacity, with 70% of the monthly earning for full incapacity. If the insurance holder requires permanent care, the rate is 100%.
• Survivors’ Income: Right holders of deceased insurance holders due to work accidents or occupational diseases receive 70% of the monthly earning. Premiums must be fully paid for self-employed individuals’ right holders to receive income. Additionally, funeral and marriage allowances are provided.
• Marriage Allowance: Daughters whose income or pensions are terminated due to marriage receive a marriage allowance equivalent to two years of pension or income. If they become eligible again within two years, they will not receive income or pension until the end of this period but will retain universal health insurance.
• Funeral Allowance:Funeral allowance is payable to right holders of deceased insurance holders who were receiving incapacity income or had 360 days of insurance premiums.

2- Sickness Insurance:

Sickness refers to conditions causing incapacity in insurance holders due to reasons other than work accidents or occupational diseases.

• Temporary Incapacity Allowance: Insurance holders under a service contract or subject to sickness insurance receive a temporary incapacity allowance from the third day of incapacity, provided 90 days of short-term insurance premiums are paid within one year before incapacity.

3- Maternity Insurance: 

Maternity Insurance covers both the sickness and invalidity statuses related to pregnancy and maternity for:

• Female insurance holders or uninsured spouses of male insurance holders working on service contracts or on their own accounts.
• Females receiving income or pensions due to their own work or uninsured spouses of male insurance holders receiving income or pensions.

This coverage starts from the date of pregnancy and extends up to eight weeks post-delivery, or ten weeks in the case of multiple births.

• Temporary Incapacity Allowance in Maternity Status: Female insurance holders working on service contracts or on their own accounts (excluding company partners) are eligible for a temporary incapacity allowance during the maternity period if they do not work and have a rest report, provided they have paid at least 90 days of short-term insurance premiums within one year before childbirth. The allowance covers:
  • Eight weeks before and after childbirth.
  • An additional two weeks before childbirth in the case of multiple births.
  • Additional rest periods after childbirth if the woman works until three weeks before the birth with medical approval.

• Breastfeeding Benefit: The breastfeeding benefit is payable for each newborn, provided the child is alive. It is available to:
  • Female maternity insurance holders or male insurance holders with uninsured spouses who give birth.
  • Female insurance holders receiving income or pensions due to their work or to the uninsured spouses of male insurance holders receiving income or pensions.

To qualify for the breastfeeding benefit:

• • Insurance holders working on service contracts must have paid a minimum of 120 days of short-term insurance premiums within one year before childbirth.
  • Insurance holders working on their own accounts must have paid a minimum of 120 days of short-term insurance premiums and cleared any debts related to premiums, including universal health insurance.

If female insurance holders, who have earned the right to receive the breastfeeding benefit, give birth within 300 days after their insurance status ends, they or their spouses will still receive the benefit, provided they have paid a minimum of 120 days of premiums within fifteen months before the birth.

C-) GENERAL HEALTH INSURANCE:

Universal health insurance, as defined by Law No. 5510 in Turkey, ensures the maintenance of individuals’ health and covers costs arising from health risks. This system, introduced by Law No. 5510, offers comprehensive, fair, and equitable access to healthcare services for all insured and uninsured residents, regardless of their economic status.

• Scope of Universal Health Insurance: Individuals Covered Under Universal Health Insurance Universal health insurance covers a wide range of individuals residing in Turkey, including:
  •  Active Insurance Holders:
    • Individuals working on service contracts.
    • Civil servants.
    • Those working permanently in positions not subject to service contracts but are not deemed insurance holders under relevant laws.
    • Agents delegated directly under contracts.
    • Self-employed individuals and village or neighborhood headmen under Law No. 5510.

  • Optional Insurance Holders:

    • Citizens with a domestic income per capita less than one-third of the minimum wage.
    • Stateless individuals and refugees.
    • Individuals over 65 receiving pensions.
    • Individuals receiving honorary, military service planning, compensation, or disabled veteran pensions.
    • Those benefiting from protection, care, and rehabilitation services free of charge.
    • Individuals entitled to pensions due to national sports achievements.

• Foreign Residents: Foreigners with residence permits not covered by foreign insurance legislation, considering reciprocity principles.

• Individuals Benefiting from Social Security and Unemployment Benefits: Individuals receiving income or pensions from the Social Security Institution.

  • Citizens without foreign health insurance rights.

    • Special Cases:

      • Foreign university students paying premiums.
      • Law interns during their internship period.
• Exclusions from Universal Health Insurance: The following individuals are not covered under universal health insurance:
  • Those fulfilling military obligations as privates, enlisted specialists, or cadets.
  • Foreign employees in Turkey for less than three months.
  • Turkish citizens employed abroad and insured by foreign institutions.
  • Prisoners and detainees.
  • Foreigners with residence permits residing in Turkey for less than a year.
  • Pensioners living outside Turkey.

• Conditions for Benefiting from Healthcare Services in Turkey:Certain individuals and situations are exempt from any conditions for accessing healthcare services:
  • Individuals under 18 years old.
  • Those medically needing another person’s assistance.
  • Cases involving traffic accidents, emergencies, work accidents, occupational diseases, and contagious diseases.
  • Maternity-related treatments.
  • Situations arising from disasters, wars, strikes, and lockouts.

To benefit from healthcare services, universal health insurance holders and their dependants must meet specific conditions:

• • At least 30 days of paid premiums within the year before seeking healthcare services.
  • No premium-related debts over 60 days.
  • Payment of full-term premiums by foreign students within a month from the term start.

• Services Provided Under General Health Insurance:
  • Healthcare Services
  • Financed Services: The Social Security Institution finances necessary healthcare services to maintain health, treat illnesses, and handle work accidents, occupational diseases, and maternity. Treatment continues until recovery, even if the individual loses universal health insurance status during treatment.
• Financing of General Health Insurance: Healthcare services are provided according to Law No. 5510 and agreements with healthcare providers. The Social Security Institution finances these services through premiums collected from universal insurance holders. Premium rates are as follows:
  • General Rate: 12.5% of earnings for individuals subject to short and long-term insurance branches (5% from the individual and 7.5% from the employer).
  • Special Cases: 12% of earnings for those subject to only universal health insurance and receiving unemployment benefits.

The State contributes one-fourth of the collected premiums for invalidity, old-age, and survivors’ insurance. Premium income is strictly used for administrative expenses, healthcare services, and other rights under universal health insurance.