Türkiye increases minimum retirement payment for over 3.7M retirees
A group of elderly friends sit on a bench, ğposing with their canes in Mersin, southern Turkey, March 10, 2019. (AA Photo)
An increase in the minimum retirement pension is set to benefit over 3.7 million retirees, following a new regulation submitted to Parliament by the ruling AK Party.
AK Party Group Chairman Abdullah Guler led the proposal, which included amendments to tax laws, departure fees for Turkish citizens traveling abroad, and other related regulations. The proposal has been submitted to the Parliamentary Speaker’s Office.
Minimum retirement pension raised to $377
AK Party has proposed raising the minimum retirement pension from ₺10,000 to ₺12,500 ($377). This increase is expected to cost the budget ₺33.2 billion.
Previously, a 24.73% increase based on six-month inflation figures was decided, but retirees with a base pension below ₺8,000 would not receive any raise.
Proposal details
The proposal consists of 14 articles aimed at strengthening tax justice, increasing direct tax contributions, combating unregistered employment, and enhancing tax collection efficiency.
- Minimum pension raise: The minimum retirement pension will increase from ₺10,000 to ₺12,500.
- Departure fee increase: Departure fees for Turkish citizens traveling abroad raised from ₺150 to ₺500.
- Insurance premiums: Insurance premium rates will increase from 2% to 5%.
- Employer support removal: Support for employers hiring workers who were insured before Sept. 8, 1999, will be removed if they continue working in the same place.
New tax regulations:
- A new tax security measure will be established for self-employed groups, requiring income tax assessments. Those with over 20% non-compliance will need to provide explanations.
- The penalties for unregistered work also increased. The current penalty of one time the tax will be increased to 1.5 times, and the penalty of three times the tax will rise to 4.5 times.
- Increased penalties for those using or allowing the use of someone else’s IBAN.
- VAT exemptions for non-commercial marine vehicles in marinas will be removed.
- Certain tax settlements will be prioritized. From now on, only penalties will be subject to settlement.
The proposed changes are comprehensive, aiming to address various aspects of tax law and pension adjustments.
