Retirement calculations back to square one! Retirement becomes more difficult with the new omnibus law

With the new omnibus law published in the Official Gazette, the conditions for retirement have become even more difficult. With the "Law on Amendments to Tax Laws and Certain Laws and Decree-Law No. 631," both debt repayment costs have been increased and new deduction regulations have been introduced for retirement, widow, and orphan pensions.

With the changes made in the law, the revival payments for tradespeople registered with Bağ-Kur have also been significantly increased.

PREMIUM BURDEN WILL INCREASE

Regulations have been tightened for those who have missing premium days to qualify for retirement. Starting January 1, 2026, the cost of retiring through premium debt repayment will increase. With the amendment made to the Social Insurance and General Health Insurance Law, premium rates and state contributions have been reorganized.

With this change, premium rates for disability, old-age, and death insurance have been raised. Additionally, increases have been made to insurance premium rates for certain groups, such as optional insured individuals and those working in domestic services.

According to the new regulation, automatic deductions will be made from the income of individuals receiving pensions from the Social Security Institution (SGK) due to their debts. Starting January 1, 2026, deductions not exceeding 25 percent will be applied to those receiving retirement, widow, and orphan pensions who have debts to the SGK, for premium debts, general health insurance debts, and administrative fines. This regulation will include a practice affecting 16 million citizens.

With the new law, the rates for debt repayments made by Bağ-Kur members have been increased to 45 percent. All debt repayment rates, excluding birth debt repayment, have been raised from 32 percent to 45 percent. When the premium debts of Bağ-Kur members are erased, the revival payments they will make to gain days will also be calculated based on the 45 percent rate. Tradespeople must apply by the end of the month to benefit from the current lower rates.

NEW REGULATIONS ON PROPERTY TAX AND RENTAL INCOME

New regulations regarding property tax and rental income have also been made in the omnibus law. It has been decided that in 2026, property tax values for buildings and land cannot exceed twice the tax value of 2025. Furthermore, with another regulation regarding residential rental income, the practice of deducting housing loan interest from the tax base has been abolished.

With the new omnibus law, the upper limit for premium payments linked to the minimum wage has also been changed. The upper limit for earnings subject to premiums, which was 7.5 times the minimum wage, has been increased to 9 times. This change stands out as a step that could particularly affect segments that pay high premiums.

With these regulations, while retirement and debt repayment conditions have become more burdensome, significant changes have also been made regarding tax and rental income. How these changes will affect the economy will be seen more clearly in the coming period.