GRADUAL DATE OF EFFECT FOR THE EMPLOYER’S OBLIGATION ON AUTOMATIC INVOLVEMENT OF EMPLOYEES IN PRIVATE PENSION SYSTEM

With  reference  to  our  Newsletter  of  December  2016,  the  Regulation  on  the  Basis  and  Procedures  for Automatic Involvement of the Employees in the Pension Plan through Employers (in Turkish “Çalışanların İşverenleri Aracılığıyla Otomatik Olarak Emeklilik Planına Dahil Edilmesine İlişkin Usul ve Esaslar Hakkında Yönetmelik”) (hereinafter referred to as the  “Regulation”) issued by the Council of Ministers (in Turkish “Bakanlar  Kurulu”)  with  the  decision  numbered  2017/9721  has  been  published  in  the  Official  Gazette dated 2 January 2017.

The Regulation came into force at the date of its publication to be valid as of 1 January 2017.

The Regulation foresees gradual involvement of the employees working in the private sector into private pension system through employers.

Accordingly, as per article 6 of the Regulation;

1. Employees working for an employer employing 1,000 or more employees, as of 1 January 2017
2. Employees working for an employer employing 250 or more, but less than 1,000 employees, as of 1 April 2017
3. Employees working for an employer employing 100 or more, but less than 250 employees, as of 1 July 2017
4. Employees working for an employer employing 50 or more, but less than 100 employees, as of 1 January 2018
5. Employees working for an employer employing 10 or more, but less than 50 employees, as of 1 July 2018
6. Employees working for an employer employing 5 or more, but less than 10 employees, as of 1 January 2019

shall be automatically involved in the private pension scheme.

Whilst determining the number of employees under this article, for the employers having more than one place of business, total number of the employees working in all places of business shall be taken into consideration.

As explained in detail in our Newsletter of December 2016, employer’s non-compliance with the arrangement of the employees’ automatic involvement to the private pension system and other obligations governed by the legislation in effect shall give rise to an administrative fine to be imposed by the Ministry of Labour and Social Security (in Turkish, “Çalışma ve Sosyal Güvenlik Bakanlığı”) in the amount of TRY 100.- (one hundred Turkish Liras) for each infringement.

Our Law Firm remains at your disposal for any further clarifications you may need.