New Changes In Turkish Tax And Social Security Laws

One of the main issues discussed with the International Monetary Fund was the unification of the Social Security Institutions in Turkey. Currently, there are three different institutions serving different parts of the workforce, subject to a total of 710 articles of their own laws as well as numerous secondary legislations. Law No. 5510 on Social Security and General Health Insurance has been adopted as unchanged by the Parliament after a veto from the President in May 2006. The President’s objection had focused on two issues: (i) the increase in the minimum retirement age for men and women, which were planned to be 60 and 58, respectively; and (ii) the decrease in the pension effective rates from 3% to 2%. Although the President has filed a cancellation lawsuit in the Constitutional Court concerning the relevant articles, the unification law is expected to entail its positive impacts for all parties of the regulated labor life in Turkey