29.08.2026 08:30
The targeted 2026 timeline for the Complementary Pension System (TES) within the scope of OVP has become uncertain, as no draft law has yet been submitted to Parliament. While it is noted that the planned 3% deduction from salaries will reduce employees' purchasing power and that the premium burden on employers could reach 44.75%, experts have warned employees against claims that "severance pay will be abolished."
The targeted 2026 timeline for the Complementary Pension System (TES), planned to be implemented within the scope of the Medium-Term Program (MTP) and Presidential Programs, has been reopened for discussion. The absence of a bill submitted to the public, the cost-of-living pressure on employees, employers' growing cost concerns, and severance pay debates stand out as the biggest obstacles to the major reform.
TES, which aims to transform the Automatic Enrollment System (AES) into a second-tier pension model that includes employer contributions, seeks to restructure the funds of the Individual Pension System (IPS) and AES and simplify the deductions within the system. However, the timeline envisioned for 2026 for the system, whose implementation date has been postponed multiple times, remains uncertain. Isa Karakas, a columnist for Türkiye newspaper, made striking assessments in his column regarding the future of TES and the current economic outlook.
REGULATION NOT ON THE PARLIAMENT'S AGENDA
According to the information conveyed by Isa Karakas, the development plans published in 2023 pointed to the autumn of 2024 for transforming AES into TES with employer contributions. When the regulation was not implemented at that time, the timeline was first moved to 2025 and then to 2026 with the 2026 Presidential Program. Despite this, there is still no official bill submitted to the Turkish Grand National Assembly or a comprehensive draft shared with the public. Since the Parliament will focus on budget negotiations after its opening in October, it is considered highly unlikely that TES will be enacted in the remaining part of the year.
WORKERS' PRIORITY IS FINANCIAL DIFFICULTY
The most critical aspect of the system for employees is the planned premium deductions. In the current economic conditions, where the minimum wage is 28,075 liras and the hunger threshold has reached 36,940 liras, the difference between the two figures has exceeded 8,865 liras... The 3% TES share planned to be deducted from the employee's salary on top of SGK premiums will further reduce the net amount received by the employee. This situation causes the working population to prioritize the financial hardship they face today over future retirement savings and to object to the system.
EMPLOYERS' FEAR OF COSTS
It is stated that TES will impose a significant additional financial burden not only on workers but also on employers. Businesses already under cost pressure due to increases in SGK and unemployment insurance premiums may face additional premium payments. If a mandatory additional contribution of 3% each for both the employee and the employer is introduced under TES, it is calculated that the total premium burden could rise to 44.75%. Considering the changes in premium incentives for non-manufacturing sectors, it is noted that this burden could negatively affect employment, especially for SMEs and small businesses, and increase undeclared work.
SEVERANCE PAY DEBATE AND SEARCH FOR CONSENSUS
Proposals that have periodically come to the agenda since 2003 to "convert severance pay into a fund system and link it to TES" have become a topic of debate again due to objections from social partners.
On the other hand, Karakas warned workers against the public claims that "severance pay will be abolished with TES," emphasizing that there is no regulation in the legislation changing severance pay, and that workers should not resign in a way that leads to loss of rights based on baseless rumors.
IS TES THE SOLUTION OR IMPROVING THE SYSTEM?
Experts argue that instead of TES, which introduces a new premium burden, the priority should be to make the existing SGK retirement system fairer and more sustainable. It is noted that steps taken without full consensus among the employee, employer, and the state could create new social and economic problems, and all eyes are on the steps the Parliament will take in the new legislative term.