While preparations continue for the Supplementary Retirement System (TES), which covers millions of employees in Turkey, the new regulation is expected to be implemented this year. Within the scope of the system, which concerns employees in the public and private sectors, it is envisaged that automatic deductions will be made at certain rates from salaries. According to the information obtained, while TES is planned to be put into operation in the second half of the year, the new regulation aims to create an additional retirement income to the existing social security system.
It is expected that the contribution deductions from employees’ salaries will be evaluated in various funds and returned as additional income during retirement. WILL THERE BE AN ADDITIONAL BURDEN ON EMPLOYEES? Experts state that the scope of the system will be quite wide and approximately 20 million people will be affected by this regulation. While it is stated that automatic deductions from salaries will vary depending on the income level of employees, the aim of the application is to strengthen long-term savings habits.
On the other hand, the new system caused different opinions to emerge in the public. While some experts argue that it is a positive development for employees to gain additional savings in the future, others state that mandatory deductions from salaries may create an additional burden on employee budgets. DETAILS WILL BE KNOWN IN THE COMING MONTHS While TES is considered as an improved model of the Automatic Enrollment System applied in the past, officials stated that the details of the system will be clarified in the coming months and the regulations that will protect the rights of employees will be shared with the public in this process.
While it is anticipated that there will be a significant change in the retirement and savings system in Turkey with the implementation of TES, employees are waiting for official statements about the amount of deductions from their salaries and the returns that the system will provide.
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