Changes coming to the pension system
With the regulations to be made in the pension system, the ceiling for earnings subject to premiums will increase, and borrowing rates will also rise. Experts state that those who apply by the end of the year will be at an advantage.
12punto
Significant changes are on the agenda for the pension system. With the new legislative proposal submitted to the Grand National Assembly of Turkey (TBMM), the ceiling for earnings subject to premiums for employees will be increased from 7.5 times to 9 times. While this regulation will increase employees' premium payments, it will positively affect pension amounts in the long term.
The rise in borrowing rates from 32 percent to 45 percent is also noteworthy. This increase will raise payments for those who perform service borrowing. However, those who complete their borrowing transactions by the end of 2025 will be able to gain an advantage by paying lower premiums.
INCREASE IN BORROWING COSTS
The new legislative proposal includes an increase in rates and the minimum wage for all service borrowings, excluding maternity. The amount currently paid for 1 month of borrowing, 8 thousand 322 lira, will rise to 11 thousand 702 lira in 2026. Military service borrowing will also increase; the cost of 18 months of borrowing will exceed 210 thousand lira from 149 thousand 791 lira.
The maternity borrowing rate will remain fixed, but the increase in the minimum wage will also affect this type of borrowing. In the event of a 28.5 percent increase in the minimum wage, 1 month of maternity borrowing will rise from 8 thousand 322 lira to 10 thousand 693 lira. For this reason, those planning to perform maternity borrowing can save money by applying before the end of the year.
IMPORTANT WARNINGS FOR BAĞ-KUR AND EMPLOYEES ABROAD
Revival (ihya) transactions to be made for the frozen service periods of Bağ-Kur members will also be affected by the new rates. While the daily revival premium is currently 299 lira, it is expected to exceed 501 lira in the new year. For those working abroad, the borrowing rate will remain fixed, but premiums will rise due to the increase in the minimum wage. Therefore, it is recommended that Turkish citizens working abroad also apply before the end of 2025.
Experts state that with the entry into force of the new regulations, there will be significant increases in borrowing and revival costs. For this reason, it is of great importance for those planning to borrow or revive service periods to apply before the end of 2025. Since both the minimum wage increase and the new 45 percent rates will come into effect in the new year, those who are late may face higher amounts. In summary, "those who pay today will gain tomorrow."