Bad news for working retirees: Government prepares for salary cuts

In 2024, which AKP Chairman and President Recep Tayyip Erdoğan declared the 'Year of Retirees,' retirees have been condemned to poverty-level wages.

While the lowest pension was set at 12 thousand 500 TL, retirees struggling with the cost of living were forced to work.

As millions of retirees turn their eyes to the raise to be implemented in January, bad news has arrived for working retirees.

According to the 'austerity measures' included in the Medium-Term Program (OVP), a 12.5 percent deduction is planned from the pensions of retirees who are forced to continue working.

According to a report in Birgün, a formula involving the collection of general health insurance premiums from working retirees has emerged among the steps to be taken within the scope of the Medium-Term Program (OVP).

The 12.5 percent general health insurance premium, which is deducted from the salaries of those in the workforce before retirement, will now be deducted from the salaries of working retirees under the new regulation.

It is planned that retirees who are forced to work at an advanced age will provide income to the strained budget. A 32 percent Social Security Support Premium (SGDP) is deducted from the salaries of working retirees. In the current situation, this deduction is the employer's responsibility. The fact that employers find this rate high is also criticized as a factor that increases informality by pushing retirees out of insured employment.

The Social Security Support Premium (SGDP) is deducted for the income to be granted in the event that a working retiree becomes unable to work due to a work-related accident or occupational disease. The premium deducted from salaries for work-related accidents during the period leading up to retirement is 2 percent. Working retirees are subjected to much higher premium deductions than other employees.

According to Social Security Institution (SGK) data, the number of registered working retirees in the system, which was 746 thousand 766 in 2020, rose to 1 million 871 thousand 897 in January of this year, and to 2 million 23 thousand 11 in June. While the number of retirees receiving a pension who work informally is unknown, it is estimated to be approximately 1 million people.

With average pension payments at the 16,500 lira level, retirees are being forced to return to working life, while a loss of income for retirees is also on the horizon. The deduction of social security support premiums from employees, alongside general health insurance, means that significant cuts will be made to salaries.