Don't miscalculate: Widow and orphan pensions have changed

Retirement pensions have been increased. The government has also raised the lowest pension by 25 percent, from 10,000 TL to 12,500 TL. Approximately 4.5 million people receiving survivor's pensions through SSK and Bağ-Kur will also benefit from the increase to the 12,500 TL minimum pension in proportion to their shares.

Those receiving widow and orphan pensions will benefit from the minimum pension, which has increased to 12,500 Turkish Lira, at rates of 25 percent, 50 percent, and 75 percent.

With the increase in the minimum pension, starting from August, the monthly payments for those receiving pensions based on a 25 percent share will not be lower than 3,125 Turkish Lira, those based on a 50 percent share will not be lower than 6,250 Turkish Lira, and those based on a 75 percent share will not be lower than 9,375 Turkish Lira.

Following the announcement of these figures, millions of people were confused about how much would be deposited into their accounts, and Hürriyet newspaper columnist Noyan Doğan wrote an article regarding widow and orphan pensions. Here is that article by Doğan on the subject:

"Those receiving widow and orphan pensions from SSK and Bağ-Kur, numbering 4.5 million, will also benefit from the lowest pension, which has been increased to 12,500 Turkish Liras; naturally, in proportion to their shares.

As is known, the spouse, children, and, under certain conditions, the parents of a deceased insured person can benefit from the death pension. While a monthly pension at a rate of 50 percent is granted to the surviving spouse of the deceased insured person, if the insured person has no children and the spouse is not receiving income or a pension due to their own insurance status, a death pension is granted at a rate of 75 percent."

For children who are not employed or who have not been granted an income or pension due to their own insurance status; a pension is granted at a rate of 25 percent of the salary to those who have not reached the age of 18, or the age of 20 if they are receiving high school or equivalent education, or the age of 25 if they are receiving higher education.

In this context, those receiving widow's and orphan's pensions will benefit from the lowest pension, which has increased to 12,500 liras, at rates of 25 percent, 50 percent, and 75 percent. Let me explain it in the simplest way. With the increase in the lowest pension; starting from August, the salaries of those receiving a pension based on a 25 percent share will not be lower than 3,125 liras, those based on a 50 percent share will not be lower than 6,250 liras, and those based on a 75 percent share will not be lower than 9,375 liras.

In July, the pension increase rate for SSK and Bağ-Kur retirees was 24.73 percent. The increased salaries, reflecting the 24.73 percent raise, were deposited into accounts in July.

Similarly, the pensions of those receiving survivor and orphan benefits were also increased by 24.73 percent, and the increased payments were deposited into accounts based on this calculation. For those with a 25 percent share whose base pension was 1,500 liras and who were receiving the minimum pension of 2,500 liras, the salary calculation was performed based on the 1,500 lira base; a 24.73 percent increase was applied first, resulting in a salary of 1,886 liras, to which a 4 percent additional payment was added, bringing the July salary to 1,961 liras, and this amount was deposited into accounts in July.

Since the lowest pension has been increased to 12,500 liras and the lowest widow's and orphan's pension cannot be less than 3,125 liras based on a 25 percent share, a salary difference payment of 1,164 liras was deposited into the accounts of these individuals on August 7. Starting from August, 3,125 liras will be deposited into the accounts of those whose base salary is 1,500 liras.

One reason for the miscalculation is that the salaries deposited into the bank between January and June include a 4 percent additional payment. In other words, if 5,200 liras are deposited into the bank each month, this amount includes the 4 percent additional payment (200 liras). Your salary is actually 5,000 liras. Therefore, you need to calculate the 24.73 percent July raise based on 5,000 liras.

Let me give an example for those receiving widow and orphan pensions based on a 50 percent share. If your salary was 5,000 Turkish Liras excluding additional payments in the January-July period, you will apply the 24.73 percent retiree raise in July and add the 4 percent additional payment on top of that; thus, your salary will be 6,485 Turkish Liras.

Since the lowest pension based on a 50 percent share is 6,250 Turkish Liras and your salary is 235 Turkish Liras higher than that, 6,485 Turkish Liras will be deposited into your account until December of this year.

In summary; those whose base salary is below 2,400 based on a 25 percent share, those whose base salary is below 4,800 liras based on a 50 percent share, and those whose base salary is below 7,200 liras based on a 75 percent share will benefit from the minimum pension in proportion to their shares."