Enforcement actions to be initiated against social security debtors in Türkiye

Türkiye‘s Minister of Labor and Social Security, Vedat Isikhan, made significant announcements regarding municipalities and companies that owe debts to the Social Security Institution (SGK). He stated that enforcement actions will be initiated against certain municipalities that have not addressed their debts, emphasizing the need for transparency in sharing information with the public.

Municipalities that have not paid their debts

Minister Isikhan revealed that several municipalities have failed to pay their SGK premiums, including Adana Metropolitan Municipality, Besiktas and Maltepe municipalities in Istanbul, and Karsiyaka Municipality in Izmir. He noted that these municipalities have not communicated with SGK, warning that enforcement actions will begin against them. He added, “Those who do not make payments see their debts continuously increasing due to interest. The debt, initially stated as ₺96 billion ($2.8 billion), has now risen to ₺140 billion ($4.1 billion).”

Disclosure of company debts

Isikhan stated that the SGK premium debts of companies have reached an “incredible level.” He announced that, similar to the Ministry of Finance’s practices, the names of companies with the highest premium debts will be made public. He mentioned that some companies owe between ₺500 million ($14.6 million) and ₺1 billion ($29.2 million).

Statements on complementary pension system

Isikhan also addressed concerns circulating on social media about the complementary pension system. He stated, “There is no work being done by the Ministry,” and assured the public that there are no plans for a system to replace severance pay. He emphasized that while discussions may arise about creating a fairer system to enhance retirees’ living standards, the priority remains to protect existing rights.

EYT and its economic impact

Regarding the EYT (Early Retirement for Those Who Have Completed the Necessary Work Duration) regulation, Isikhan reported that the number of retirees has reached 16.4 million, with 2 million insured individuals receiving monthly pensions as a result of EYT adjustments. He noted that the average monthly pension for EYT retirees is ₺17,000 ($496) and projected that the costs associated with EYT will be approximately ₺210 billion ($6.13 billion) in 2023 and ₺592.6 billion ($17.3 billon) in 2024.

Minimum wage negotiations

Finally, Isikhan announced that discussions on the minimum wage will begin in December, stating, “We hope to arrive at a figure that satisfies both workers and employers.” He stressed that the agreed-upon minimum wage should improve employees’ living standards.

Minister Isikhan’s statements have highlighted critical issues regarding SGK premium debts and the pension system, drawing increased public interest in these topics.