Pensions are granted according to different parameters valid in three separate periods: before 2000, between 2000 and 2008 and after 2008. The compensation for work before 2000 is determined according to the monthly indicator system and civil servant salary coefficient. Earnings subject to premium for the period between 2000 and 2008 are updated and calculated monthly, taking into account the consumer price index (CPI) and 100 percent of the increase in gross domestic product (GDP). When calculating the pension for work done after 2008, the entire increase in CPI and 30 percent of GDP is taken into account. While the prime earnings are updated, it gradually decreases in each period.
On the other hand, while the lowest pension was determined according to 70 percent of the lowest indicator in the period before 2000, it was indexed to 35 percent of the minimum wage in the period between 2000 and 2008, and to 35 percent of the "average monthly earnings" in the period after 2008. Since the "average monthly earnings" has fallen a lot due to the calculation system in the update system, the lowest pension is also gradually decreasing. The pension calculated for the work of three periods is also gradually decreasing.
Despite additional increases in some years, workers' pensions are generally increased every 6 months at the rate of inflation, which causes the pension to erode over time.
RETIREMENT PENSION SHOULD BE INDEXED TO THE MINIMUM WAGE
In the article published in the refereed İş and Life Magazine of ŞEKER - İŞ Union, he suggested that the pension should be indexed to the minimum wage. In the article titled The Effect of Economic Instability Due to Price Increase on Workers' Pensions and a Calculation Proposal to Protect Workers' Pensions, it was suggested that the pension should be calculated in proportion to the minimum wage on the date it was first established, and that the pension increase in subsequent years should be made in proportion to the minimum wage.
HOW DOES RETIREMENT PENSION APPLY?
In the article, the meltdown in pensions was explained with examples. For example, while the pension paid for 8195 bonus days was 97.93 percent of the minimum wage on July 1, 2002, it dropped to 55.76 percent of the minimum wage in 2012. Despite the additional increases made to retirees in the meantime, the monthly salary in question decreased to 65.44 percent of the minimum wage in January this year.
Permanent disability income is granted to those who lose their ability to work as a result of a work accident or occupational disease, according to the loss rate. As with pensions, a lower limit is also applied to permanent disability income. While both were equal before 2000, due to the change in the minimum pension application after 2000, today there is a 91 percent difference between the worker's lowest incapacity income and the lowest pension. According to the calculation made for the person with a 25 percent loss of working capacity, while both were 79.59 TL in December 1999, today the lowest incapacity income is 46,500 TL and the lowest pension is 24,324 TL.
MINIMUM WAGE INSTEAD OF UPDATE COEFFICIENT
The essence of the article is the method of calculating the pension and the indexation of its monthly increase to the minimum wage. The proposed model is based on the principle of updating the premium-based earnings based on the current value of the minimum wage, instead of just updating the premium-based earnings with the update coefficient, without making any fundamental changes in Law No. 5510. The pension calculated according to this method will be paid by taking into account the ratio of the minimum wage on the date the pension is granted. If there is an increase in the minimum wage in the July period, it will be increased in proportion to the minimum wage increase; if there is no increase in the minimum wage, it will be increased in proportion to the six-month CPI. In January, the pension will be determined in proportion to the new minimum wage.
In the model, it was also suggested that the salaries of those who retired before 2000 should be paid based on the minimum wage in December 1999, and the salaries of those who retired after January 2000 would be paid based on the minimum wage in the period in which they were paid.
Pension does not melt when indexed to the MINIMUM WAGE
Sample calculations are also included in the article. For example, the salary of a person whose premium-based earnings for the years 2000-2024 was 3 minimum wages and who retired on February 1, 2025, is at the level of 43,954 TL in July 2026.
In the proposed model, the pension of the same person is fixed at 174.50 percent of the gross minimum wage. This monthly amount comes to 57,637 TL with the formula of 33,030 TL minimum wage x 174% in January 2026. With the 17.76 percent inflation increase in July, it rises to 67,874 TL.
In the article, it is stated that the pension should be at a level that will provide a sufficient source of income at the first stage of granting, and that it should be adapted to the changing economic conditions of the day after it is granted.
In the article, it was also pointed out that making changes in the pension calculation method in line with the proposal would bring an additional burden to the budget, and it was stated that it was very difficult to implement the proposal in the short term, and therefore, it would be necessary to focus on income-generating activities to meet the additional budget burden.
