31.10.2026 09:10
Alternatives are being evaluated to switch to a new model for determining the lowest pension. While the aim is to establish a more permanent system instead of increases made every six months, the options of taking the minimum wage as a basis, income supplementation support, recalculating base pensions, and making increases according to budget possibilities stand out. Legal changes will be required for the new regulation to be implemented.
Millions of retirees are concerned by a change to the lowest pension payment scheme being considered. While eyes are turned to the good news President Erdoğan will announce, instead of the current system in which the base pension is increased every six months according to the inflation rate, a more sustainable model in which increases are tied to specific rules is being focused on.
The study aims to address problems in the pension system, make salary increases predictable, and improve the incomes of retirees receiving low pensions.
In this context, four different options are being evaluated.
THE MINIMUM WAGE MAY BE DETERMINATIVE IN RETIREMENT PENSIONS
The first formula on the table involves linking the lowest pension to the minimum wage or another economic indicator.
If this model is preferred, the base pension will be updated according to a formula to be defined in law, instead of being determined every six months by a new law.
Thus, retirees will know in advance by what criterion their pensions will be increased.
However, what portion of the minimum wage will be taken as a basis and the cost the regulation will bring to the budget have not yet been clarified.
INCOME SUPPLEMENT SUPPORT FOR LOW-PENSION RECIPIENTS
The second option envisages establishing an income supplement system instead of continuously raising the lowest pension.
According to this model, retirees below a specified income level could be given support equal to the difference.
If the scope of the practice is expanded, retirees' household incomes and social support needs could also be taken into account.
In this way, it is aimed to direct public resources especially to low-income retirees.
In the model, it is planned to keep the pension earned in return for premiums separate from the income support that is in the nature of social assistance.
ROOT PENSIONS MAY BE RECALCULATED
The third formula under consideration involves reorganizing retirees' root pensions.
In order to improve the situation of retirees who cannot sufficiently feel the increases in their pensions because their root pension is low, a review of the pension linking system is being considered.
In this context, the effects of the number of premium days, premium-based earnings, and pension linking rates on pension calculation could be reconsidered.
The change in question will concern not only current retirees but also those who will retire in the future.
INCREASES MAY BE DETERMINED ACCORDING TO BUDGET POSSIBILITIES
The fourth option envisages basing increases to the lowest pension on budget balances and economic conditions.
In this formula, rather than directly equating base pension increases to the inflation rate, economic indicators and the possibilities of public finance could be taken into account.
Introducing a certain minimum increase guarantee to preserve predictability in retirees' incomes is also among the topics being evaluated.
LEGAL REGULATION WILL BE REQUIRED FOR THE NEW SYSTEM
Which of the models on the table will be preferred has not yet been finalized. Legal regulation will be required to change the current system.
In this context, by amending the Social Insurance and General Health Insurance Law No. 5510, the method for determining the base pension, increase periods, and financing principles could be reorganized.
If the root pension system is changed, a more comprehensive legislative study will be required.
How many retirees the new model will affect, the cost it will bring to the budget, and how existing rights will be protected will be decisive in shaping the regulation.
Which formula will be implemented and whether the options will be implemented together will become clear after the evaluations to be made.
IŞIKHAN HAD POINTED TO PRESIDENT ERDOĞAN FOR THE GOOD NEWS
Minister of Labor and Social Security Vedat Işıkhan had previously stated in his announcement that President Recep Tayyip Erdoğan would deliver the good news. As Işıkhan's words have come to the agenda again, it has not yet become clear which of the new models being evaluated regarding retirement pensions will be preferred.