As of 2 January 2017, Turkish companies with more than 1,000 members of staff will need to make arrangements for their employees to pay into at least one private pension fund. The measure, which by 2019 is to apply to all Turkish employees under the age of 45, is geared towards boosting savings in a country which is suffering from a chronic lack of funding.
The implementation ruling – published on 2 January in the Turkish Official Journal – states that all companies in the country with more than 1,000 employees must take a monthly sum from workers’ salaries, equal to 3% of their gross pay, which is to be paid into one or several pension funds. The pension vehicles will have a specific agreement with the relevant employer.
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