Cumhuriyet1 hour agoBusiness1 min readTürkiyeView original

Supplementary Pension System (TES) was not included in the new MTP

While TES is not included in the government's Medium Term Program for the 2027-2029 period, the additional deduction planned to be made from employees' wages is off the agenda for now.

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The Supplementary Retirement System, followed by millions of employees, was not included in the Medium Term Program for the 2027-2029 period.
The planned 3% deductions from employees and employers have been postponed for now.

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Why It Matters

The Supplementary Retirement System was discussed as a model that aims to create a second retirement income with the contribution of employees and employers.

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There has been a new development in the Supplementary Retirement System (TES), which is closely followed by millions of employees and employers. TES, known publicly as "second retirement", was not included in the government's Medium Term Program (MTP) covering the period 2027-2029. Thus, the additional deduction planned to be made from employees' wages is off the agenda for now.

Türkiye Newspaper writer and SSI Expert İsa Karakaş evaluated the new MTP and stated that the system, which has been discussed for a long time, could not be implemented under the current conditions.

A 3 PERCENT CUT WILL BE MADE FROM EMPLOYEES

In the planned TES model, it was envisaged that a 3 percent deduction would be made from the gross wages of employees and employers would contribute the same amount. The aim of the system was to create an additional complementary income to the existing retirement income.

However, since TES is not included in the MTP covering the 2027-2029 period, the additional deduction planned to be made from employees' wages will not be implemented for now.

TES SCHEDULE WAS POSTPONED PREVIOUSLY

The timetable for the implementation of TES had been changed several times before.

In the MTP published in 2023, the last quarter of 2024 was targeted for the transformation of the Automatic Enrollment System (OKS) into TES with employer contribution. Since this target was not achieved, the calendar was postponed to 2025.

The system was postponed again in the 2026 Presidential Program. In the new MTP, TES was not included at all.

İSA KARAKAŞ: THE SYSTEM IS CLOGGED UNDER CURRENT CONDITIONS

SSI Expert İsa Karakaş said that they have been expressing for a long time that it is not possible to implement TES due to economic and social conditions.

Karakaş pointed out that there is no law proposal, a prepared draft or a clear text announced to the public yet, and stated that the process is constantly postponed. He stated that since there is no TES title in the new MTP, the system does not progress in its current situation.

991 MONTHLY LIRA WILL BE CUT FROM THE MINIMUM WAGE

In 2026, the gross minimum wage is 33 thousand 30 TL and the net minimum wage is 28 thousand 75.50 TL.

Within the scope of TES, if a 3 percent employee contribution was received on the gross wage, approximately 991 TL would be deducted monthly from the salary of a minimum wage employee.

Karakaş pointed out that this additional burden will create a significant cost, especially for low-income employees.

IT WOULD ALSO BRING AN ADDITIONAL COST OF 3 PERCENT TO THE EMPLOYER.

TES meant additional costs not only for employees but also for employers.

In addition to the employee contribution, it was planned to receive a 3 percent contribution from employers. Karakaş stated that adding the TES contribution to the existing premium burden will increase costs, especially for SMEs and small businesses.

TES HAS NOT BEEN LEGALLY REMOVED

The fact that TES is not included in the new MTP does not mean that the system has been completely abolished legally. However, in the current situation, the planned 3 percent deduction from employees' salaries will not be applied.

There is no new timetable for the implementation of the system yet.