5510 Social Insurance and Universal Health Insurance Law II

İlgili Makaleler

Avans Ödemesinden Yapılan İcra Kesintisi

1 gün önce

İstirahat Raporu Ücreti Nasıl Hesaplanır?

1 gün önce

EYT ile Emekli Olan Personelin İş Güvencesi Hakkı

1 hafta önce

                                                             SECTION FOUR

                                                        Provisions on Premiums

                                                                PART ONE

             Collecting Premiums, Earning Subject to Premium, Premium Rates and Minimum Workmanship

Obligation to collect premiums

ARTICLE 79 – For short and long term insurances and universal health insurance, the Institution is obliged to collect, and the

concerned parties are obliged to pay, premiums in order to cover any kind of payment foreseen in this Law and management

expenses.

Universal health insurance premiums collected by the Institution shall be transferred directly to the universal health insurance

section of the Institution budget, following collection.

Earnings subject to premium

ARTICLE 80 – (Amended: 17/4/2008 – 5754/47th Art.)

Earnings subject to premium for insurance holders under item (a) of paragraph one of Article 4 shall be determined as follows.

a) In the calculation of earnings subject to premium, gross total of;

1) Deserved wages,

2) amounts paid to the special health insurance holders and to personal retirement system for insurance holders by employers

and payments made in the concerned month from premium, bonus and any kind of similar deserved amount,

3) payments made to the insurance holders in the concerned month in the form of earnings stated in above numbers (1) and (2)

pursuant to resolutions of administration or legal authorities,

shall be taken as basis.

b) Benefits in kind and funeral, birth and marriage benefits, duty travel allowances, mobile duty compensation, severance pay,

dismissal pay or collective payment in the form of severance pay, estimated cost, pay in lieu of notice or cash compensation,

and food, child and family increments of which amount will be determined the Institution in years, private health insurance

premiums and personal retirement contribution fees, not exceeding 30% of the monthly total minimum wage, paid by the

employers to private health insurances and personal retirement system for insurance holders shall not be included in the

earnings subject to premium.

c) excluding the exceptions in item (b), under whatsoever name, all payments and cash payments made to substitute aids in

kind shall be included in the earning subject to premium. Exemptions and exceptions regarding not being subject to premium in

other laws shall not be taken into consideration in the execution of this Law.

d) Wages shall subject to premium by attributing to the month they are deserved. Other payments shall be included in the

earning of the month they are paid and the section not subject to premium due to exceeding the upper limit in the month such

payments are made out of wage shall be added to the earnings subject to premium of the subsequent months under the upper

limit, not to be later than two months following the month of payment. Based on resolutions reached by employers of

workplaces subject to collective labour agreement or by public administrations or legal authorities, where the payments paid

later on other than wage are paid when service contract is not present or suspended, considering the provision of Article 82, this

shall be included in the earning of the final month to which earning subject to premium belongs to. In such cases, where the

insurance premiums are paid until the end of the month following the finalization date of the resolution of the abovementioned

authorities, default fine or default increment shall not be collected and provisions of Article 102 shall not be applied.

e) Daily earnings to be used in calculating the premiums and benefits of insurance holders receiving wage over an indefinite

time and amount such as commission fee or participation to profit, not based on a certain hourly, daily, weekly or monthly fee

shall be the lower limit determined in accordance with Article 82.

f) If an insurance holder working subject to an employer receives wage under item (e) other than a certain wage, then the

earning subject to premium shall consist of the sum of these.

g) Daily wage to be used in the calculation of premiums shall be one thirtieth of the earning subject to premium in a month of

the insurance holder. However, the daily earning of an insurance holder who did not work on certain days and did not receive

wage for not worked days in the month used in calculating daily earning shall be calculated by earning subject to premium of

the concerned month divided by the number of paid days.

h) Number of days used in calculating the daily earnings of insurance holders also indicates the number of paid premium days

of such individuals. However, provided that the part time service contract between the employer and the insurance holder is in

written format, the number of paid premium days of in that month of the insurance holder who works at certain hours of the

day and receives hourly wage shall be calculated by the total number of hours worked in that month divided by the daily

working hour calculated according to the weekly working time determined pursuant to Labour Law Number 4857. Day

fractions shall be accepted as a full day in such calculations.

ı) If the working time is determined as day, week or month between the parties in the written labour contract based on work

upon call between the employer and the insurance holder, then paid premium days of the insurance holder in that month shall

be calculated in accordance with the provision of item (h), considering that the weekly working time is decided to be minimum

twenty hours.

i) Universal health insurance premiums of the missing days of number of paid premium days less than 30 in a month shall be

calculated considering the missing working periods pursuant to paragraph four of Article 88.

j) (31/7/2008 – 5797/1st Art.) The paid premium days of individuals employed as specialist or master teacher under the

relevant legislation in return to additional course fee at formal and informal educational institutions of any degree or kind under

Ministry of National Education shall be calculated, not exceeding 30 days, by dividing total amount of the additional course

fees deserved in a calendar month by lower limit of daily earning subject to premium. In such calculations the remainders of

the whole numbers shall not be taken into consideration. (1)

Earnings subject to premium for insurance holders under item (b) of paragraph one of Article 4 shall be determined as follows.

a) Monthly earning subject to premium is thirty times the daily earning to be declared by the individuals themselves, provided

that it is in the range between the upper and lower limit of earning subject to premium determined pursuant to Article 82.

Monthly earning subject to premium shall be declared by such insurance holders at times determined by the Institution.

Monthly earnings subject to premium of the non – declaring insurance holders shall be determined as thirty times the lower

limit of earning subject to premium.

b) Where the insurance holder is also employer, then the earning subject to premium cannot be less than thirty times the highest

daily earning subject to premium of the employed insurance holders. Monthly earnings subject to premium of the insurance

holder whose monthly earning subject to premium is determined to be less than the thirty days of daily earning subject to

premium of employed insurance holder shall be increased to the level of determined earning and the premium of the difference

shall be collected by applying default fine or default increment pursuant to the provisions of Article 89.

c) Where more than one status is present requiring being insurance holder under item (b) of paragraph one of Article 4, a single

declaration shall be submitted based on the principles stated in items (a) and (b) of this paragraph.

In calculating the earnings subject to premium of individuals who become insurance holders for the first time under item (c) of

paragraph one of Article 4;

a) For insurance holders who receive their pensions in accordance with personnel laws;

1) monthly amounts payable over monthly indicators and additional indicators pursuant to relevant laws,

2) Public service base pension and seniority pension amounts,

3) Position, representation and duty compensations, compensations payable pursuant to Article 152 of Public Servants Law

Number 657 (in addition to main compensations based on region, institution, unit, working location, characteristics of duty and

similar criteria, excluding additional or separately paid compensations), service compensation payable over the ratios stated in

the table in paragraph (A) of appended Article 17 of Turkish Armed Forces Personnel Law number 926 dated 27/7/1967 (only

service compensations corresponding to the ranks of individuals who receive compensation or university benefit pursuant to

Law number 2629 dated 28/2/1982 and Law number 2955 dated 17/11/1983), university benefit payable pursuant to Article 12

of Higher Education Personnel Law number 2914 dated 11/10/1983, additional payment pursuant to paragraph three of Article

106 of Law Number 2802 on Judges and Prosecutors,

b) amount calculated over the factors foreseen in item (a) for insurance holders working on contract corresponding to a staff

position, based on the staff positions they occupy,

c) for insurance holders who are assigned indirectly as proxy, amount payable pursuant to relevant legislation from the factors

foreseen in item (a),

ç) For insurance holders who receive pension or wage by taking as basis or comparing with another staff position or duty

payment factor; amount to be calculated at the rate foreseen in pension or wage payment of this earning, not exceeding the

earning subject to premium of the peer staff position or duty,

d) In the Metropolitan Municipalities, for the ministry general director, and for mayors, the earnings subject to premium in item

(d) of section “VIII. Civil Administration Services Class” of additional indicator table number (I) appended to Law number

657, not exceeding the degree they can be promoted to pursuant to Law number 657 in terms of their education statuses,

e) For the individuals employed as artist lecturer among the lecturers employed on contract pursuant to Article 15 of Higher

Education Personnel Law Number 2914 at conservatories under higher education institutions found in the tables attached to

Decree in lieu of Law Number 78 on Lecturers in Higher Education Institutions, the amount of earning subject to premium

determined according to their education levels and degrees among the individuals employed under the title of lecturer staff

position in the said Law; for those who are employed on contract as artist, craftsman and artist teacher in public

administrations, the amount of earning subject to premium in item (a) for engineers present in the technical services class

subject to Law Number 657 in terms of their education level and degrees; for those who bear minimum associate degree among

the individuals employed on contract at higher education institutions and other public administrations as art practician or stage

practician, earnings subject to premium of technicians under technical services subject to Law Number 657 in terms of their

educational levels and degrees and of technical workers for others,

f) For individuals for whom a connection is established with a certain staff position, title or duty in terms of retirement or

additional indicator in relevant laws, earnings subject to premium of the staff position, title or duty with which connection is

established,

g) For insurance holders out of the scope of items (a) and (f) of this paragraph, earning subject to premium determined for the

same staff position, title, education level and degree of similar duties in classes which they may be included pursuant to Law

Number 657 in terms of the duty they are assigned to,

shall be taken as basis. Payments to be made pursuant to the relevant legislation in return to proxy or second duty shall not be

considered in calculating the earning subject to premium.

–––––––––––––

(1)                                                             With Article 12 of Law Number 5797 dated 31/7/2008 it is ruled

that this item will be in effect on 15/10/2008.

In determining the monthly earning subject to premium for the individuals subject to only universal health insurance; for

individuals listed in items (d) and (g) of paragraph one of Article 60, thirty days amount of the two times the lower limit of

earning subject to premium determined pursuant to Article 82, minimum wage for individuals stated in item (c) of paragraph

one of Article 60, and for individuals in item (e) of paragraph one of Article 60, the minimum earning subject to premium shall

be taken as basis. However, for those individuals who are determined to have, besides applying to become universal health

insurance holders under number (1) of item (c) of paragraph one of Article 60, per capita pension amount in a family to be

determined by using test methods and data to be laid down by the Institution between one thirds of minimum wage to minimum

wage, one thirds of thirty – day amount of lower limit of daily earning subject to premium determined in accordance with

Article 82, for those between minimum wage up to two times minimum wage, the thirty – day amount of lower limit of daily

earning subject to premium determined in accordance with Article 82, for those over two times the minimum wage, two times

the thirty – day amount of lower limit of daily earning subject to premium determined in accordance with Article 82 shall be

taken as minimum earning amount subject to premium.

Procedures and principles on the implementation of this Article shall be regulated by the Regulation to be issued by the

Institution.

Premium rates and contribution of State

ARTICLE 81 – Following are the rates of insurance premiums to be collected pursuant to this Law:

a) The rate of invalidity, old – age and survivors insurance premiums is 20% of the earnings subject to premium of the

insurance holder. 9% of this is insurance holder’s share, 11% is employer’s share.

b) (Amended: 17/4/2008 – 5754/48th Art.) In works to which actual service term increment stated in this Law is applied,

1) the rate of invalidity, old – age and survivors insurance premium applicable for insurance holders working under item (a) of

paragraph one of Article 4, shall be determined by adding 1 point in works where 60 actual service days will be added

pursuant to Article 40; 1.5 points in works where 90 actual service days will be added pursuant to Article 40; and 3 points in

works where 180 actual service days will be added to the 20% rate stipulated in item (a) of this Article,

2) the rate of invalidity, old – age and survivors insurance premium applicable for insurance holders working under item (c) of

paragraph one of Article 4, shall be determined by adding 3.33 point in works where 60 actual service days will be added

pursuant to Article 40; 5 points in works where 90 actual service days will be added pursuant to Article 40; and 10 points in

works where 180 actual service days will be added to the 20% rate stipulated in item (c) of this Article,

and the rate obtained with this method and the entire premium of the difference between 20% stipulated in item (a) of this

Article shall be payable by the employer.

c) Short term insurance branches premium rate shall be determined by the Institution pursuant to Article 83, between 1% and

6.5% depending on the gravity of the danger of the work in terms of work accident and occupational disease. All of this

premium shall be paid by the employer.(1)

d) Premium rate for students in item (b) of paragraph one of Article 5 and trainees in item (e) shall be 1% of their earnings

subject to premium. Lower limit of daily earning subject to premium shall be taken into consideration in calculating the daily

earnings subject to premium of trainees. Earnings subject to premium of candidate apprentices, apprentices and students

receiving vocational education shall be applied as stipulated in relative laws.

e) (Abrogated: 17/4/2008 – 5754/48th Art.)

f) (Amended: 17/4/2008 – 5754/48th Art.) Universal health insurance premium shall be 12.5% of earning subject to premium

calculated pursuant to paragraph one of Article 82 for individuals subject to short and long term insurance branches. 5% of this

premium is insurance holder’s share and 7.5% is employer’s share. Universal health insurance premium for individuals subject

to only universal health insurance and for individuals listed in item (e) of paragraph one of Article 60 and interim Article 13 of

this Law shall be 12% of earning subject to premium.

g) (Amended: 17/4/2008 – 5754/48th Art.) Insurance holders under item (b) of paragraph one of Article 4 shall pay their

premiums over the total of the premium rates in items (a), (c) and (f).

h) (Appended: 17/4/2008 – 5754/48th Art.) In return to duty disability pensions, being or will be paid to insurance holders

under item (c) of paragraph one of Article 4 and to survivors pensions to be granted to their right holders, additional return

premium shall be collected at 20% of the state premium benefits allocated to social security institutions from public

administrations’ budgets for insurance holders in this scope. All of the allocated additional return premium shall be payable in

equal monthly instalments, within six months following the beginning of the month following the effective date of institution

budgets after approval of competent authorities. Additional return premiums of administrations under general budget shall be

covered from the appropriation to be placed in the Ministry of Finance budget.

_______________________

(1)                                                                    Pursuant to Judgment E. 2006/111, K. 20006/112 dated 15.12.2006 of

Main Court is cancelled for insurance holders under item (c) of paragraph one of Article 4 of the Law, and until the publication date of

Cancellation Resolution on Official Journal, its Execution is stayed pursuant to Judgment number E:2006/111, K:2006/36 dated 15/12/2006

(Stay of Execution); for the said cancellation judgment please see Official Journal number 26392(5th Repetition) dated 30/12/2006.

ı) (Appended: 17/4/2008 – 5763/24th Art.) For the private sector employers who employ insurance holders under item (a) of

paragraph one of Article 4 of this Law, the amount corresponding to five points of employer share in the premiums of

invalidity, old – age and survivors insurances pursuant to item (a) of paragraph one of this Article shall be covered by the

Treasury. For the premiums belonging to employer’s share to be covered from the Treasury, it is obligatory that the employers

should submit, within legal period to the Social Security Institution, the premium and service documents pursuant to this Law

regarding insurance holders they employ, that, of insurance premiums of all insurance holders, the amount corresponding to the

insurance holder’s share and the amount belonging to employer’s share not covered by the Treasury should be paid within legal

due time, and that there should not be any premium, administrative fine, and any default fine or default increment debts to the

Social Security Institution. However, the employers, who defer and divide into instalments their premium, administrative fine

and related default fine and default increment debts to the Institution pursuant to Article 48 of Law Number 6183 dated

21/7/1953 on the Procedure for Collecting the Public Claims and who divide into instalments and restructure such debts

pursuant to Social Insurance Institution Law Number 4958 dated 29/7/2003, to Law Number 5458 dated 22/2/2006 on

Restructuring Social Security Premium Claims and on Amending Some Laws, shall benefit from the provision of this

paragraph until such deferral, dividing into instalments and restructuring continues. Provisions of this paragraph shall not be

applicable to Public administration workplaces and to workers subject to social security support premium as per this Law and

to insurance holders working abroad. Premium amounts covered by the Treasury shall not be considered as a factor of expense

or cost in income and corporate tax applications. Employers who benefit separately from support factor regulated with this

paragraph in accordance with other relevant legislation shall not benefit from this support factor for the same period and

repeatedly. In such a case, the application shall be made, considering the preference of employers, limited with only one of the

support factors. Employers who are determined, in controls and inspections carried out due to this Law, not to declare the

individuals as insurance holders, shall not benefit for one year from support factors provided with this paragraph.(Appended

sentence: 31/7/2008 – 5797/2nd Art.) Incentive regulated in this paragraph shall be applicable to personnel subject to the

statuses of funds under interim Article 20 of Law number 506, over taxable values, rates and principles on insurance holders

under item (a) of paragraph one of Article 4 of this Law, excluding public administrations. Procedures and principles regarding

execution of this paragraph shall be determined jointly by Ministry of Finance, Ministry of Labour and Social Security and

Undersecretariat of Treasury.(1)

(Amended second paragraph: 17/4/2008 – 5754/48th Art.) The State contributes to the Institution, at a rate of one fourth of

the invalidity, old – age and survivors insurances and universal health insurance premium collected by the Institution per

month. Amount to be calculation as contribution of state shall be payable to the Institution, by Treasury, within 15 days

following the date of request.

Daily earning limits

ARTICLE 82 – Lower limit of the daily earning subject to premium in calculation of premiums to be collected and benefits to

be granted by is one thirtieth of the minimum wage and the upper limit is 6.5 times the lower limit of daily earning.

Earnings of insurance holders with a daily earning under the lower limit in the above paragraph and of insurance holders

working free – of – charge shall be calculated using lower limit, and the of the individuals with a daily earning over the upper

limit shall be calculated using upper limit.

If the earning of the insurance holder is under lower limit pursuant to paragraph two, then the insurance premiums of the

difference between this earning and the lower limit and the entire insurance premium of insurance holders working free – of –

charge shall be payable by the employer.

If the total of premiums paid to the Institution due to the fact that insurance holders work more than one work subject to the

same insurance status determined pursuant to Article 53 of this Law exceeds the amount to be calculated over the upper limit of

earning subject to premium determined for such insurance status, then, upon request of the insurance holder, all of the

exceeding part shall be refunded to the insurance holder, in single instalment, at a rate of his share, at the latest in the month

following the date of request. A separate default fine and default increment and interest shall not be paid for refunded

premiums.

Premium tariff for short term insurance branches and determining danger classes and degrees of work branches and

works

––––––––––––––

(1)                                                              With Article 2 of Law number 5797 dated 31/7/2008; the

expression ” who restructured pursuant to Law Number 4958 dated 29/7/2003 on Restructuring Social Security Premium

Claims and on Amending Some Laws hall benefit from the provision of this paragraph until such deferral, dividing into

instalments and restructuring continues” in this item is amended as “who divide into instalments and restructure such debts

pursuant to Social Insurance Institution Law Number 4958 dated 29/7/2003, to Law Number 5458 dated 22/2/2006 on

Restructuring Social Security Premium Claims and on Amending Some Laws, shall benefit from the provision of this paragraph

until such deferral, dividing into instalments and restructuring continues” and amendment is applied to the text.

ARTICLE 83 – Short term insurance branches premium shall be determined depending on the gravity of the danger of the

work in terms of work accident and occupational disease. Work branches are divided into classes depending on the gravity of

danger, and these classes are divided into degrees based on special working conditions and on measures taken to prevent

danger. Which work branch is included in which danger class, premium rats of danger classes and degrees and principles

applicable to determining the danger degrees shall be determined by a tariff to be put into force by a resolution of Council of

Ministers, upon proposal of the Ministry asking the opinions of concerned ministries. If necessary, the premium tariff may be

changed using the same procedure.

In which danger class and degree the work is based on the tariff stated in paragraph one and premium rates to be paid for short

term insurance branches shall be determined by the Institution and shall be officially communicated to the employer and to the

insurance holders pursuant to item (b) of paragraph one of Article 4. Individuals who are determined not to be in compliance

with the provisions of legislation on measures to prevent work accident and occupational disease may be placed by the

Institution to higher premium degrees.

The Institution may change the determined danger class and degree of the workplace, acting spontaneously based on the

examinations or upon request of the employer or insurance holders pursuant to item (b) of paragraph one of Article 4. It is

obligatory that the decision on changes to be made by the Institution is notified to the employer minimum one month before the

calendar year of the decision and that the change request of the employer is notified to the Institution minimum two months

before the calendar year of the request.

Changes decided on in this manner shall be in effect at the beginning of the calendar year following the decision or request.

Employers and insurance holders under item (b) of paragraph one of Article 4 may place an objection to the Institution, within

one month following the receipt of the written notification to be made by the Institution regarding danger class and degree, and

premium rate. The Institution shall examine and decide on such objections within maximum three months and shall notify the

objector about the result. The concerned parties, upon decision of the Institution, may resort to competent court within one

month following the notification date of decision. Placing objection to the Institution or applying to court shall not terminate

follow – up and collection of premiums.

If the objection of employers or insurance holders under item (b) of paragraph one of Article 4 is placed within one month

following the receipt of workplace danger class and degree and short term insurance branches premium rate by the employers

or insurance holders under item (b) of paragraph one of Article 4, then the changed work branch code and danger class and

degree shall be applied as of the date of wrong application, and if objection is placed out of this one – month period, then it

shall be applied starting from the beginning of the year following the receipt of the objection in the records of the Institution,

and if time periods in paragraph one are missed, then it shall be applied as of the beginning of the calendar year following the

official notification of the decision on change to be made by the Institution.

Where danger class and degree increases due to such a change, if the premium difference of short term insurance branches of

the period between the date of official notification of the decision to employers or insurance holders under item (b) of

paragraph one of Article 4 and the effective date is paid to the Institution within one month following the official notification

date, then default fine and default increment shall not be charged for this premium difference. Otherwise, the premium

difference shall be collected with default fine and default increment pursuant to Article 89. In case the danger class and degree

decreases, the premium difference of short term insurance branches shall be deducted, if any, from the debts of the employer or

shall be refunded. No interest shall be payable if it is refunded within one month.

Changes that may affect danger classes and degrees

ARTICLE 84 – Employers and insurance holders under item (b) of paragraph one of Article 4 are obliged to notify the

Institution within one month about any kind of change that may affect the danger class and degree. Upon such a notification,

the Institution may, as a result of examinations, change the danger class and degree. If the change that may affect the danger

class and degree is notified within one month, then the decision of Institution on this issue shall be applied starting from the

beginning of the month following the occurrence date of the change.

If the change that may affect danger class and degree is not notified within one month, then the date;

a) of change if the danger class is increasing,

b) of receipt of change information by the Institution, if danger class is decreasing,

shall be considered and the Institution shall reach to a decision, applicable from the beginning of the month following these

dates, and shall officially notify the concerned parties.

Minimum workmanship application and reconciliation (1)

ARTICLE 85 – In case the employer is found to make notification under insurance number, working time and earning subject

to premium necessary for administering the work in terms of peers, quality, scope and capacity, then minimum workmanship

amount necessary for administering the work shall be determined considering issues such as quality of the work done,

technology used, size of the workplace, number of insurance holders employed at peer enterprises, opinion of concerned

professional or public institutions. The said determinations shall be carried out by the officers of the Institution charged with

duties of inspection and control.

The Institution checks whether employers, who carry out works for public administrations, organizations having revolving

funds institutions and organizations established by law and banks, based on tender legislation and for private construction

works, have notified sufficient amount of workmanship. If, as a result of such examination it is found out that sufficient

workmanship is not notified, then the premium amount to be calculated over the missing workmanship amount shall be

officially communicated to the employer, to be paid within one month, including default fine and default increment to be

calculated pursuant to Article 89. The debt shall be finalized when the employer pays or commits in written to pay the officially

communicated premium and default fine and default increment. In case the payment liability, undertaken in the written

declaration to be submitted to the Institution, is not fulfilled, then a transaction shall be applied to the employer pursuant to

Articles 88 and 89. If the officially communicated premium and default fine and default increment is not paid, declaration is

not submitted or the Institution finds it necessary to inspect the workplace, then an examination shall be carried out by the

Institution.

Insurance premiums accrued, sua sponte, by the Institution over the minimum workmanship amount determined by the

Institution that it is not notified under procedures stated in paragraphs one and two of this Article, shall be officially

communicated to the employer considering Articles 88 and 89. The employer may submit an objection against the

communicated premium debt, to the Institution within one month following the date of official communication. Objection shall

suspend the transaction. In case of refusal of objection by the Institution, the employer may apply to competent labour court

within one month following the date of official communication of the decision. Applying to the court shall not terminate the

follow – up and collection of the premium debt.

Administrative fine pursuant to number (4) of item (d) and (e) of paragraph one of Article 102 shall be applied, by the officers

of the Institution authorized with inspection and control, to the workplaces which are determined not to notify the minimum

workmanship amount to the Institution.

Public administrations, organizations having revolving fund, institutions and organizations established by law, and banks are

obliged to submit information and documents to be requested by the Institution, in written, regarding execution of this Article,

within maximum one month.

In examining whether sufficient workmanship amount is notified to the Institution, a Commission for Determining Minimum

Workmanship shall be established, consisting of totally seven technical members, of which four are technical personnel of the

Institution, two are from worker and employer confederations represented in Board of Directors and one member from Turkish

Union of Chambers and Stocks, in the body of the Institution, with the purpose of determining minimum workmanship rates to

be considered in determining minimum workmanship amounts required for administering the work and of examining and

deciding on the objections that may be submitted against minimum workmanship rates.

If found necessary by the Institution, more than one Commissions for Determining Minimum Workmanship may be established

based on same principles. The commission meets with absolute majority and decisions shall be reached with the same votes of

minimum four members. In case the members out of the Institution do not attend to subsequent three meetings and to five

meetings within last six months, then members from the next confederation in the rank of membership numbers shall be invited

to substitute the non – attending member of the first confederation.

Members assigned to Commission for Determining Minimum out of the Institution shall receive attendance fee, over the

amount found by multiplying the indicator figure of (2500) with the coefficient used in the calculation of public servant

pensions, for each attended day, from the Institution.

(Appended paragraph: 17/4/2008 – 5754/49th Art.) Reconciliation with the employer may be applied in the calculated

insurance premiums, and administrative fines to be applied to these premiums, together with the default fine and default

increment over the taxable value subject to difference insurance premium, which is determined as a result of minimum

workmanship examination carried out by the Institution officers charged with duties of inspection and control at the permanent

workplaces and which cannot be attributed to the insurance holders, before the report on the issue is sent to the relevant unit by

the Institution. In case of reconciliation, this issue shall be written in minutes. Agreed amounts shall be final and no lawsuits

could be brought or no complaints or objections could be submitted to any authority regarding the amounts subject to

agreement. The agreed premiums and administrative fines shall be payable within maximum one month following the

preparation of reconciliation minutes. The employer shall not benefit separately from advance payment discount for the agreed

administrative fine. In case the agreed amounts are not paid fully within this time period, then the agreement shall be annulled

and the agreed amounts shall not be considered as vested rights. In cases where the agreement could not be reached or

agreement could not be found during reconciliation negotiations or agreement is cancelled, the employer may not request on

this issue at a later time.

(Appended paragraph: 17/4/2008 – 5754/49th Art.) In case the insurance premiums not collected due to discount as a result

of agreement are attributed to the insurance holder due to a resolution of the Institution or court, then missing insurance

premiums shall be collected, together with the default fine and default increment, considering the earning subject to insurance

premium and the service term of the insurance holder.

Working procedures and principles of the Commission for Determining Minimum Workmanship, characteristics of technical

personnel to be assigned to the Commission, method to be applied in determining minimum workmanship, determining data,

criteria for on – site determination to be carried out on completed or ongoing works, establishment, working procedures and

principles of reconciliation commissions, and other procedures and principles regarding the execution of this Article shall be

regulated by a regulation to be issued by the Institution

–––––––––––––

(1)                                                                     The title of this Article was “Minimum workmanship application” ;

however, with Article 49 of Law Number 5754 dated 17/4/2008 it is amended as applied to the text and the expression “institutions and

organizations established by law” is appended following the “organizations having revolving funds” in paragraphs four and five of the same

Article, and the expression “establishment, working procedures and principles of reconciliation commissions” is appended following the

expression “on – site determining criteria to be carried out” in paragraph nine, and all these are applied to the text.

                                                                  PART TWO

                                            Premium Documents and Payment of Premiums

Premium documents and workplace records (1)

ARTICLE 86 – The employer is obliged to submit the original and additional premium and service document stating;

a) names and surnames, TR identity numbers,

b) earnings subject to premium to be calculated as per Article 80,

c) paid premium days and premium amounts,

of employed insurance holders subject to Article 4 and 5 and of insurance holders subject to social security support premium,

and of which sample shall be established by a regulation to be issued by the Institution, within one month until the end of the

date to be determined by the Institution for the ones under item (c) of paragraph one of Article 4, and until the end of the date to

be determined by the Institution in the month following the month it belongs to for other insurance holders, or if the employer

does not employ any insurance holders, the employer is obliged to notify the Institution about this issue within fifteen days

following the ending date of employing insurance holders.

Employers and workplace owners are obliged to keep workplace books, records and documents, for a period of ten years

starting from the beginning of the year following the year of such documents, and public administrations are obliged to keep

such for a period of thirty years, liquidation and bankruptcy administration officers are obliged to keep such during their duties,

and these are obliged to present such within fifteen days to the Institution officers charged with inspection and control duties,

upon their requests.

In case the employer temporarily transfers the insurance holder in order to fulfil working for another employer pursuant to

Article 7 of Labour Law Number 4857, then the transferee shall be obliged, jointly with the employer, for submitting to the

Institution, within the same time period, the documents stated in paragraph one regarding the temporary work relation period.

It is obligatory for the employer to add the documents proving that the insurance holders, who are declared not to work and not

to be paid on certain workdays in a month, have worked less than thirty days, to the premium and service document of the

concerned month. This condition shall not be sought for public administrations and for workplaces where collective labour

agreement is signed.

In case information and documents proving that the insurance holders worked less than thirty days are not submitted to the

Institution within the due time for monthly premium and service document or in case submitted information and documents are

not considered valid by the Institution, monthly premium and service document is prepared by the Institution, sua sponte, for

periods declared less than thirty days, and the premiums shall be collected pursuant to the provisions of this Law.

Employers or sub employers who employ insurance holder and employers who are transferees of insurance holders in order to

fulfil work action are obliged to display, at a place possible to be seen by the insurance holders, a copy of monthly premium

and service document approved by the Institution, at the workplace where insurance holders work, or in case of more than one

workplaces, separately at each workplace where insurance holders work, starting from the day following the end of the due

time for submitting the documents to the Institution until the end of the period for submitting the subsequent document.

(Amended seventh paragraph: 17/4/2008 – 5754/50th Art.) In case, as a result of actual examinations or examinations in

workplace records by the Institution’s officers authorized with inspection and control duties or of the investigations, inspections

and examinations carried out by own control officers of public administrations or from the documents or information prepared

by or received from public institutions and organizations and banks, the documents which are found to belong to working

insurance holders and to be submitted to the Institution pursuant to this Law are not submitted or submitted incomplete within

one month in spite of official communication, these documents shall be prepared by the Institution, sua sponte, and the

contained insurance premiums shall be determined and officially communicated by the Institution to employers. The employer

may submit an objection against the premium debt communicated pursuant to this Article, to the concerned Institution unit

within one month following the date of official communication. Objection shall suspend the transaction. In case of refusal of

objection, the employer may apply to competent labour court within one month following the date of official communication of

the decision. Applying to the competent court shall not terminate the follow – up and collection of the premium debt. In case

the court rules in favour of the Institution, then provisions of Article 88 and 89 on premium debts shall be applied.

(Appended paragraph: 17/4/2008 – 5754/50th Art.) For the insurance holders who are determined not to notify, or notify

incompletely, the Institution about their services or earnings subject to premium, although they are found to be working not

based on records and documents from actual examinations or examinations in workplace records by the Institution’s officers

authorized with inspection and control duties or from the investigations, inspections and examinations carried out by own

control officers of public administrations, only the section, which belong to one year before the date on which highest number

is determined, of their past services or earnings subject to premiums shall be taken into consideration.

If insurance holders, for whom monthly premium and service documents are not submitted by employer and who could not be

determined to work by the Institution, can prove that they work, with a written judgment, by applying to labour court within

five years from the end of the year of their services, then monthly earning totals and paid premium days stated in the court

judgment of such individuals shall be taken into consideration.

–––––––––––

(1)                                                                      With Article 50 of Law Number 5754 of 17/4/2008; the expression “by

the end of twenty fifth day of the month following the month it belongs to” present in paragraph one of this Article is amended as “within one

month until the end of the date to be determined by the Institution for the ones under item (c) of paragraph one of Article 4, and until the end of

the date to be determined by the Institution in the month following the month it belongs to for other insurance holders” and is applied to the

text

If the Institution finds out that in one or more works where insurance holders work, necessary monthly premium and service

documents are not submitted by the institution or earnings or paid premium days in the submitted monthly premium and service

documents are incomplete although the conditions stipulated in this Law are fulfilled, then necessary payments shall be made

from sickness and maternity insurances.

Transactions for fulfilling the obligations in this Article shall be carried out pursuant to Article 102.

The Institution is authorized to determine different time periods for submitting premium documents based on the characteristics

of workplace at public administrations. Procedures and principles on the implementation of this Article and the content and

formant of the documents shall be regulated by the Regulation to be issued by the Institution.

Persons obliged to pay premiums

ARTICLE 87 – In terms of short and long term insurance branches and universal health insurance and optional insurances, in

the execution of this Law;

a) (Amended: 17/4/2008 – 5754/51st Art.) for individuals subject to item (a) and (c) of paragraph one of Article 4 and item (a)

of Article 5, their employers,

b) for individuals subject to item (b) of paragraph one of Article 4 and among such individuals, those who are subject to social

security support premium, optional insurance holders and individuals listed in items (d) and (g) of paragraph one of Article 60,

the individuals themselves,

c) for individuals under item (c) of paragraph one of Article 60, the relevant public administrations, provided that premium year

is covered from the central government budget,

d) (Amended: 17/4/2008 – 5754/51st Art.) for individuals under item (e) of paragraph one of Article 60 and under item (e) of

Article 5, Turkish Labour Institution,

e) for candidate apprentices, apprentices and students who receive vocational education at enterprises in item (b) of Article 5

and for students subject to compulsory apprenticeship in vocational high schools, the Ministry of National Education or the

schools in which such students receive education, for students subject to compulsory apprenticeship during higher education,

the higher education institution in which they receive education,

f) (Amended: 17/4/2008 – 5754/51st Art.) for individuals subject to items (c) and (g) of Article 5, either themselves or their

employers,

are persons obliged to pay premiums.

Payment of premiums

ARTICLE 88 – (Amended: 17/4/2008 – 5754/52nd Art.)

An employer who employs insurance holders stated in item (a) of paragraph one of Article 4 shall deduct the insurance holders’

share of premium amounts, to be calculated pursuant to this Law, over the total of earnings subject to premiums of the

employed insurance holders in one month, and shall pay this amount, by adding his/her own share of premium amounts, to the

Institution, before the end of the day to be determined by the Institution.

Provisions in paragraph one shall be applicable to the premiums to be calculated over the earnings deserved but not paid.

For individuals deemed to be universal health insurance holders pursuant to items (b), (c), (d) and (g) of paragraph one of

Article 60, it is obligatory to pay thirty full days of universal health insurance premiums each month. Such that, if the universal

health insurance holders under item (b) of paragraph one of Article 60 has paid premium days under compulsory insurance in

the same month, then universal health insurance premium equal to the number of optional insurance days shall be paid for the

remaining days.

For individuals who are insurance holders under item (a) of paragraph one of Article 4 but work part time or on call pursuant to

Articles 13 and 14 of Law Number 4857 and for insurance holders who work less than 30 days a month at household services

pursuant to this Law, it is obligatory to complete the universal health insurance premiums of missing days to 30 days. Universal

health insurance premiums of such insurance holders related with their missing days shall be payable under number (1) of item

(c) or under item (g) of paragraph one of Article 60. Universal health insurance premiums of insurance holders employed at

workplaces owned by public administrations related with the months in which labour contract is suspended shall be payable by

the concerned public administration, over 30 – day amount of the lower limit of daily earning subject to premium determined as

per Article 82.

For individuals under item (c) of paragraph one of Article 60, the universal health insurance premiums payable by the persons

obliged to pay premiums shall be calculated based on the total number of persons, to be found by adding the number of persons

listed in numbers (3) and (10) of this same item to the number of persons to be found by dividing the total number of persons in

numbers (1) and (2) by three as of the month in which the premium will be accrued. However, among such individuals, who are

also universal health insurance holders under items other than item (c) of paragraph one of Article 60, shall not be included to

the number of persons to be determined as per this paragraph.

Obligated persons in item (b) of paragraph one of Article 87 shall pay their premiums of each month to the Institution until the

end of the day to be determined by the Institution in the following month. Such individuals may pay their premiums in advance,

limited with maximum 360 days. In case of advance payment, for each day in advance payment discount provisions as per

Article 1 of Law Number 6183 dated 21/7/1953 on Procedure for Collecting Public Claims. However, the prepayment discount

shall not be deducted from earning subject to premium. Prepayment insurance term shall be included in the paid premium days,

starting from the first day of each month the insurance premium belongs to. In case optional insurance ends within the period in

which prepayment is made and which is not included in number of paid premium days, premiums of the days not included in

insurance term shall be refunded to the concerned parties.

For insurance holders subject to number (4) of item (b) of paragraph one of Article 4, the Institution is authorized to determine

the premium payment dates or periods, in a manner to collect universal health insurance premiums and short and long term

insurance branches premiums separately or collectively.

Insurance holders under item (b) of paragraph one of Article 4 are obliged to pay premiums for thirty full days for each month.

An employer who employs insurance holders stated in item (c) of paragraph one of Article 4 shall deduct premium amounts to

be calculated pursuant to this Law over the total of earnings subject to premiums of the employed insurance holders, and shall

pay this amount, by adding his/her own share of premium amounts, to the Institution, before the end of the day to be

determined by the Institution.

Liable parties listed in items (c) and (d) of paragraph one of Article 87 shall pay to the Institution the premiums of each month

until the end of next month.

Premium amounts not actually paid to the Institution shall not be included in the expenses in income and corporate tax

applications.

The Institution is authorized to collect the premium debts of individuals registered as insurance holders under number (4) of

item (b) of paragraph one of Article 4, by applying deductions between rates of 1% and 5%, provided that the amount does not

exceeds the debt from agricultural products they sell.

Premium debts may also be paid by deducting from value added tax return claims. In such a case, the right holder of value

added tax return may request deduction for premium debts of themselves, of employers they purchased goods or services, or

with whom they have a partnership or association relation. In case the premium debts before the month, in which such

employers request deduction, are paid in deduction within fifteen days following the payment term stated in paragraph one,

these shall be deemed to be made in due time. However, although a request is submitted for deducting premium debts from

value added tax claims, for premium debts not deducted on time or deducted incompletely, default fine and default increment

shall be applicable starting from the day following the payment terms stated in paragraph one. The Institution is authorized,

upon positive opinion of the Ministry of Finance, to determine the employer who will benefit from this application, based on

their area of activities, enterprise types, and enterprise sizes, and to extend, not longer than thirty days, the premium debt

payment term of employers requesting deduction in favour.

The Institution is authorized to collect premiums and every kind of claims, by deducting from its debts towards employers.

The Institution is authorized to bring the obligation of paying premiums using special payment methods and to determine the

collection organizations to which the premiums will be deposited.

For the collection of premiums and other claims of the Institution not paid in time, Articles of Law Number 6183 on Procedure

for Collecting Public Claims other than Articles 51, 102 and 106. The Institution uses the authorities vested to Ministry of

Finance and other public institutions and organizations and authorities in the execution of Law Number 6183.

The Institution is authorized to accept any kind of guarantee, including commercial enterprise over New Turkish Liras and/or

foreign currency, movable and/or immovable property collateral, for guaranteeing any kind of claim, excluding the claims

followed up under Law Number 6183.

The Institution’s premiums and other claims followed up under Law Number 6183 bear the characteristic of public claim and

are privileged. Indemnity and fines laid sown in Execution and Bankruptcy Law Number 2004 shall not be applicable for the

Institution in case any kind of lawsuit or execution prosecution, to which the Institution is a party, conclude against it.

Labour court at the location where the creditor of the Institution resides shall have authority in resolving disputes that may arise

in the execution of Law Number 6183 on Procedure for Collecting Public Claims in collecting premiums and other claims of

the Institution. Applying to the competent labour court shall not terminate the follow – up and collection of claims.

If the insurance premiums and other claims of the Institution are not paid in the terms laid down in this Law, then public

servants of public administrations charged with duty on accrual and payment shall be responsible, collectively and jointly with

the highest level managers or authorities and legal representatives, including the company board of director members of other

employers having artificial personality, towards the Institution.

The Institution is authorized to determine that the payments are paid at different times due to the characteristic of the workplace

at public administrations. Authorized personnel of the Institution who do not resort to legal execution within maximum one

year following the date of maturity for the collection of premium claims shall be prosecuted pursuant to general provisions.

Procedures and principles on the implementation of this Article shall be regulated by the Regulation to be issued by the

Institution.

Being successor of premium debts, default fine and default increment, and premiums which require refunding

ARTICLE 89 – (Amended first paragraph: 17/4/2008 – 5754/53rd Art.) If the workplace where the insurance holder works

is transferred with all active and passive assets or is moved or joins in or merges with another workplace, then new employer

shall be collectively and jointly responsible for the debts of former employer consisting of premiums and default fines and

other derivatives towards the Institution. Contractual provisions contrary to this provision shall not be applicable for the

Institution. The Institution is authorized to determine procedures and principles regarding execution of this paragraph.

If the Institution’s premium and other claims are not paid in due time and fully, then the unpaid section shall be increased

applying a default fine of 3% for each month in the first three months following the end of the payment term. In addition,

default increment shall be calculated by applying, to the amounts found for each month, monthly average interest of domestic

government bonds exported with discount in New Turkish Liras for the previous month to be declared by Undersecretariat of

Treasury separately for each month, starting from the end date of the payment term until the debt is paid out. However, in the

month where the payment is made, default increment shall be calculated daily. Council of Ministers is authorized to increase

default fine rate applicable to the first three months by two folds or to decrease it down to 1%, to restore to the legal rate and to

determine the date of application. Even if a lawsuit and execution prosecution is in progress, default fine and default increment

for the unpaid section of premiums and other claims of the Institution shall be collected.

Premiums which are found to be collected wrongly or inappropriately shall be refunded to employers, insurance holders,

optional insurance holders or universal health insurance holders or right holders, according to their shares, together with legal

interest, unless a period of ten years has not passed since the date they are collected. Legal interest shall be calculated for the

time from the month following the depositing date of the premium to the Institution to the beginning of the month of return.

However, provision of Article 65 of Code of Obligations is preserved.

Pensions, incomes and benefits payable and health – care services provided pursuant to this Law shall be terminated in case the

insurance holders, optional insurance holders, universal health insurance holders lose their conditions to benefit from pensions,

incomes, benefits and health – care services due to refunding premiums. Wrong or inappropriate expenses shall be taken back

from the concerned parties pursuant to provisions of Article 96.

Deduction of premium and administrative fine debts from progress payments, payment and seeking termination of

connection document (1)

ARTICLE 90 – (Amended first paragraph: 17/4/2008 – 5754/54th Art.) Public administrations and organizations having

revolving funds, organizations under Banking Code number 5411 and institutions and organizations established by law are

obliged to notify the Institution about the contractors of any work they open to tender and their addresses within fifteen days.

(Amended second paragraph: 17/4/2008 – 5754/54th Art.) Progress payments of employers shall be paid, provided that they

do not have any administrative fine, premium or premium – related debts to the Institution. Their performance bonds shall be

returned after it is determined that they do not have any debts to the Institution related with the contracted work. Any kind of

transfer, alienation and change of owner over any kind of claims, guarantees and progress payments of employers, excluding

worker wages, related with public administrations and organizations with revolving funds, banks and institutions and

organizations established by law shall be effective on the section remaining after the part covering the claims of Institution is

removed.

(Amended third paragraph: 17/4/2008 – 5754/54h Art.) Procedures and principles for deduction and payment of progress

payments and keeping guarantees as a collateral for premium and administrative fine debts shall be established by a regulation

to be issued by Council of Ministers.

(Amended fourth paragraph: 17/4/2008 – 5754/54th Art.) It is obligatory to request from the concerned parties a document,

which is issued by the Institution and states that the concerned parties do not have any debts to the Institution, because of

construction made before temporary settlement or structure using permission is granted by offices of governors, municipalities,

provincial special administrations and other authorities competent to issue licenses, and in transactions carried determined by

Council of Ministers for other public administrations and organizations having revolving fund, institutions and organizations

established by law and banks.

In cases where progress payment is paid, performance bond is returned or temporary settlement and structure using permission

is issued or other transactions are carried out without fulfilling the obligations stipulated in this Article, administrative and

penal transactions shall be applied to the concerned parties pursuant to the general provisions.

(Appended paragraph: 17/4/2008 – 5754/54th Art.) It is obligatory that before granting state aids, incentives and supports

applied, except non – cash ones which have started previously and is ongoing, at research, development, production,

investment, marketing and in all similar phases, provided with laws, decrees and other legislation in the manner of allocating

resources from public based on special documents and permissions for certain regions or sectors or issued by public institutions

and organizations excluding general regulations applied throughout the country and not based on a special permission or

document, documents and information stating that the employer does not have any matured premiums or administrative fine

debts or have divided into instalments or restructured the existing ones, should be requested. State aids, incentives and support

payments made shall be taken back, together with sanctions under relevant legislation, from those whose agreement is annulled

due to not fulfilling own liabilities regarding deferred and divided into instalments or restructured debts or, other than such

reasons, who are later on found not to benefit from such aids, incentives and supports. Procedures and principles regarding

execution of this paragraph shall be determined by the Institution receiving the options of Ministry of Finance and

Undersecretariat of Treasury.

Submission time for documents in disaster cases and deferring premiums

ARTICLE 91 – Employers and insurance holders under item (b) of paragraph one of Article 4, whose workplaces suffer from

disasters such as fire, flood, landslide, earthquake and whose agricultural activity is damaged due to natural disasters, if they

request in three months from the date of incident and if it is found out in the examination that they are incapable of paying

premiums, provided that they document their situation, then matured existing premium debts before the date of disaster and the

premium debts of three months following the date of disaster may be deferred by the Institution, up to one year from the date of

incident.

In cases stated in paragraph one, if the monthly premium and service documents which should be submitted in the month in

which disaster took place are submitted to the Institution within three months following the month of the disaster, then these

shall be deemed to be submitted in time.

The Institution is authorized to determine and postpone the due date of submitting documents they employers, insurance

holders and right owners, who suffered direct or indirect damages at disaster areas due to disasters decided to affect general life

pursuant to Law Number 7269 of 15/5/1959 on Aids to be Made and Measures to be Taken for Disasters Effecting General Life

, are obliged to submit pursuant to this Law and the payment terms of premiums that need to be paid and other claims of the

Institution, considering the conditions and developments at the disaster area, independent from the time periods in this Law.

Time limit shall not be applied to the postponed premium debt and default fine and default increment shall not be applied to the

deferred section.

–––––––––––––

(1)                                                                The title of this Article was “Seeking termination of connection

document”; however it is amended by Article 54 of Law Number 5754 of 17/4/2008 as applied in the text.

                                                          SECTION FIVE

                                              Common and Miscellaneous Provisions

                                                             PART ONE

                                                        Common Provisions

Compulsory state and termination of insurance, and social security registration number

ARTICLE 92 – (Amended first paragraph: 17/4/2008 – 5754/55th Art.) For individuals under short and long term insurance

it is compulsory to be insurance holders and universal health insurance holders and for individuals under universal health

insurance it is compulsory to be universal health insurance holders. Contractual provisions for removing, reducing, renouncing

or transferring to a third party the insurance rights and obligations stipulated in this Law shall be invalid.

If premium debts and administrative fines are not paid upon notification to be made by the Institution to the employer for

paying insurance premiums and administrative fines to be charged as per this Law, then documents stating the premium debt

and administrative fine, prepared by the Institution, shall be effective as documents prepared duly by public offices.

Insurance status shall be terminated in case the conditions to be deemed to be insurance holder in accordance with this Law are

not fulfilled or in case of death.

As for the social security registration number in registration and all other transactions for insurance holders, optional insurance

holders, and their right holders, universal health insurance holders and their dependants, TR identity number shall be used for

Turkish citizens and identity number to be issued by Ministry of Interior Affairs shall be used for foreigners. (1)

Time limit in transfer, alienation, sequestration and claims of Institution (2)

ARTICLE 93 – (Amended first paragraph: 17/4/2008 – 5754/56th Art.) The incomes, pensions and benefits of insurance

holders and their right holders and claims of health – care service providers from the Institution arising due to universal health

insurance provisions may not be transferred or alienated pursuant to this Law. Incomes, pensions and benefits may be

sequestrated except claims requiring follow – up and collection pursuant to Article 88 and alimony debts.

(Amended second paragraph: 17/4/2008 – 5754/56th Art.) Premiums and other claims of the Institution shall be subject to a

time limit of ten years, starting from the beginning of calendar year following the date on which the payment term is matured.

Time limit for premiums and other claims of the Institution shall be applied as ten years starting from the finalization date of

court judgment if they arise due to court judgment; from the date of report if they are aroused from findings of Institution

officers charged with inspection and control duties; from the date on which the results of investigations, inspections or

examinations are received by the Institution if they arise as a result of investigations, inspections and examinations carried out

by public administrations’ own inspection personnel in accordance with their legislation; from the date of receipt of information

and documents by the Institution, if they arise from information and documents received from banks, organizations having

revolving funds, public administrations and institutions and organizations established by law. Default fine and default

increment to be calculated as per Article 89 for such claims shall be applied starting from the day following the final day of the

payment term stipulated in Article 88.

Compensation and revoking lawsuits to be brought by the Institution based on this Law shall be subject to a time limit of ten

years. Time limit shall start from the approval date of the Institution for income and pensions subject to revoking and from the

date of expense or payment for expenses and payments.

Payments made after the time limit period shall be accepted. However, the period during which insurance holders subject to

item (b) of paragraph one of Article 4 do not pay premiums due to time limit shall not be included in the insurance term and the

insurance rights and obligations for this period shall be cancelled.

Control examination

ARTICLE 94 – Limited with the scope of the investigation carried out, the Institution may request control examination and

analyses in order to determine that;

a) whether universal health insurance holder or their dependants, who receive health – care services, have really received the

said health – care services,

b) whether the insurance holder, optional insurance holder, or their right holders really have the problems stated in invalidity,

incapacity reports.

Insurance holders who are put on invalidity, duty disability pension or permanent incapacity income, may request changes in

their pensions or incomes, setting forth that there is an increase in their disabilities or that they are in need of care of another

person, whereas the Institution may request that the insurance holders who are put on disabled veteran, duty disability,

invalidity pension or permanent incapacity income, and disabled children who have lost minimum 60% of their working power

and are put on pension and income, are held subject to control examination. (3)

–––––––––––––

(1)                                                                     With Article 4 of Law Number 5754 dated 17/55/2008 the expression

“social security registry to be issued by the Institution” present in this paragraph is amended as “identity issued by the Ministry of Interior

Affairs” and is applied to the text.

(2)                                                                    The title of this Article was “Time limit in transfers, alienations and

claims of the Institution”; however it is amended by Article 56 of Law Number 5754 of 17/4/2008 as applied in the text.

(3)                                                                    With Article 65 of Law Number 5754 dated 17/4/2008; the expression

“excluding disabled veterans and individuals disabled of duty” present in this paragraph is amended as “disabled veterans, duty disability”;

and with Article 66 of the same Law, the expression “duty disability” is appended following the term “invalidity” and the amendments are

applied to the text.

Depending on the invalidity status to be re – determined in the control examination carried out by the Institution or the

examination carried out upon request of the insurance holder or at the end of work orientation, the invalidity pension or

permanent incapacity income shall be increased, decreased or terminated starting from the beginning of the payment term

following the date of report on which the new invalidity status is based.

Income and pension granted to disabled children, who have lost minimum 60% of their working power, shall be terminated

starting from the beginning of the payment term following the report date, depending on their invalidity status to be determined

by the control examination.

Invalidity pension and permanent incapacity income of insurance holders who do not have the control examination although

they do not have an acceptable handicap from the date stated in written notification of the Institution until the beginning of the

next payment term, and the income or pension granted to disabled children who have lost minimum 60% of their working

power, shall be terminated at the beginning of the payment term following the date stated for control examination.

However, the terminated income or pension of an insurance holder or disabled children, who have had control examination

within three months from the date stated in written notification of the Institution and whose invalidity or permanent incapacity

status continues, shall be granted again starting from the date it is terminated.

Invalidity pension or income to be re – calculated based on new permanent incapacity degree of an insurance holder, who have

had control examination within three months from the date stated in written notification of the Institution and whose invalidity

or permanent incapacity status found to persist, and income and pension of disabled children who are receiving income and

pension and who are incapable of working, shall be started to be paid again from the beginning of the month following the date

of report.

Procedures and principles on the implementation of this Article shall be regulated by the Regulation to be issued by the

Institution.

Determining procedures and principles of medical reports

ARTICLE 95 – Pursuant to this Law, the Institution is authorized to determine the procedures and principles for transfers to

be made for abroad treatment, for reports on granting working power loss, temporary incapacity benefits, and for health

committee reports which will be the basis for loss of earning in profession or of working power due to work accident or

occupational disease, to determine the criteria that should be fulfilled by the health – care service providers authorized to issue

such reports, and to return the inappropriate health committee reports and their basis medical documents to the issuing health –

care service provider and to request it re – arranged to include determined information.

In the case of objecting to health committee reports prepared duly on transfers for abroad treatment, on duty disability degree,

on loss of earning power in profession or on degrees of loss of earning power in profession, found as a result of work accident

or occupational disease, and to decisions reached by the Institution based on other documents, the issue shall be decided on by

the Social Insurance Health High Committee, by examining the duly prepared health committee report and its basis medical

documents, and other required documents. (1)

Procedures and principles on the implementation of this Article shall be regulated by the Regulation to be issued jointly by the

Institution and the Ministry of Health.

Recalling inappropriate payments

ARTICLE 96 – Any kind of payment under this Law, which is determined to be made in excess or inappropriately by the

Institution to employers, insurance holders, optional insurance holders, individuals receiving income or pension, and to their

right holders, universal health insurance holders and their dependants, together with legal interest to be calculated starting from;

a) the dates of such payments, for the payments made within the past ten years from the date of finding erroneous transaction, if

it arose from intentional or faulty action,

b) without interest for payments to be made within three months following the notification of the concerned party about the

total of payments made in the past maximum five – year period from the date on which the erroneous transaction is found, and

for payments to be made after the end of three months, starting from the end of this period, if this is caused due to an erroneous

transaction of the Institution,

shall be deducted from the credits, if any, of the concerned parties from the Institution or shall be recalled pursuant to general

provisions.

Deducting inappropriate payments from claims shall be carried out on the principal of debts, starting from the oldest one, and

legal interest shall be applicable to the remaining debt. This provision shall be applicable in deducting inappropriate payments

made to another right holder from the same file, provided that concerned right holders consent.

In deducting inappropriate payments from incomes and pensions, the debt amount calculated with the legal interest as of the

beginning of payment term in which deduction will take place shall be applied by deducting at 25% from said incomes or

pensions.

Procedures and principles regarding the execution of this Article and determining and taking back inappropriate payments shall

be regulated by the regulations to be issued by the Institution.

––––––––––––

(1)                                                                      With Article 66 of Law Number 5754 dated 17/34/2008, the expression

“degree of duty disability” is added after the expression “transfers to be made” in this paragraph and is applied to the text.

Time limit, loss of right and advance payment

ARTICLE 97 – Unless otherwise stated in the provisions of this Law, of the incomes and pensions which should be granted in

cases of work accident, occupational disease, duty disability and survivors, the section which is not requested within five years

following the granting date of the right shall be barred by the statute of limitations. (Abrogated final sentence: 17/4/2008 –

5754/57th Art.) (1)

The above provisions shall not be applicable for the individuals who prove, pursuant to general provisions, that not applying to

the Institution is based on justified grounds.

Other rights vested by the short term insurance branches and by survivors insurance shall be lost in five years following the

granting date of the right.

Incomes and pensions of individuals who do not collect their incomes and pensions, payable pursuant to this Law, continuously

for six months following the accrual dates shall be terminated in order to determine whether the conditions for granting income

and pension are still present.

Claims of universal health insurance holders and their dependants shall be barred by the statute of limitations if not requested

within two years after the receipt of information on the incident causing the right and shall be cancelled at the end of five years

following the date of incident causing the right.

The Institution is authorized to pay advance payments in case the claims of insurance holders and their right holders and

general insurance holders and their right holders deserved in terms of execution of this Law are not paid in due time.

(Amended seventh paragraph: 17/4/2008 – 5754/57th Art.) The amount between 75% and 60% of accrued claims shall be

payable as advance payment to the health – car service providers, in order to be deducted from their claims within maximum

forty five days following the date of delivery of the invoices. Within ninety days, examination of invoices and attached

documents shall be completed and the remaining amount shall be paid.

(Appended paragraph: 17/4/2008 – 5754/57th Art.) For the prices of health – care services provided pursuant to Article 66,

advance payment may be payable before the health – care service is provided, upon request of the abroad health – care service

provider.

Not making deductions from wages, provisions on private insurance holders and executing social security contracts

ARTICLE 98 – The employers shall not make deductions from the wages of insurance holders due to the his/her own

liabilities for social insurance and universal health insurance. In cases not included in the provisions in this Law, the provisions

regarding private insurance holders shall not be taken into consideration in applying the provisions of this Law.

Contribution shares, the individuals benefiting from health – care services are obliged to pay pursuant to this Law, shall not be

subject to guarantee or payment by private insurance companies.

(Appended paragraph: 17/4/2008 – 5754/58th Art.) Procedures and principles regarding to annual or longer term

complementary or supportive private health insurances shall be laid down by the Undersecretariat of Treasury, based on

positive opinion of the Institution.

Any kind of transactions and calculations to be made under international social security conventions shall be executed by the

Institution. Reference made to the contact institution in the concerned conventions shall be deemed to be made to the

Institution.

–––––––––––––

(1)                                                                      With Article 57 of Law Number 5754 dated 17/34/2008, the expression

“duty disability” is added after the term “occupational disease” in this article and is applied to the text.

                                                                 PART TWO

                                                          Miscellaneous Provisions

 Regulations and notifications regarding social security

ARTICLE 99 – Any kind of legal regulation regarding social security rights and obligations shall be carried out in this Law.

Provisions of Official Notification Law Number 7201 dated 11/2/1959 shall be applicable on the notifications to be made

pursuant to this Law.

Right to request information and documents, procedure for submitting information and documents to the Institution

ARTICLE 100 – (Amended: 17/4/2008 – 5754/59th Art.)

The organizations under Banking Law number 5411, organizations having revolving funds and other real and artificial persons,

excluding discrete information and document requests, directly, and public administrations and organizations and institutions

established by law, based on protocols entered with the Institution, are obliged to provide any kind of requested information,

continuously and/or periodically, to ensure that the information is viewed on electronic media, to ensure the security of such

viewed information, and to submit any kind of document that they are obliged to keep and any kind of records on microfiche,

microfilm, magnetic tape, diskette, and similar media and to present all of the system and passwords, necessary for rendering

accessible and readable such information, provided that the provisions on cases which would cause grave results for the

security of State and fundamental foreign benefits and on the confidentiality of family life and right to defend are preserved,

not considering the banning and restricting provisions in special laws, even if they are secret, limited with purposes of ensuring

social security of individuals by the Institution, follow – up and collection of Institution’s claims pursuant to Law Number

6183, and other duties charged under this Law.

The concerned individuals, institutions and organizations under this Article are obliged to respond to the said request within the

time period to be determined by the Institution and to show necessary convenience.

The Institution is authorized to hold it obligatory for real and artificial persons to send any kind of document or information to

be submitted as per this Law via Internet, electronic medium or similar media, to merge any kind of document, notification and

declaration that should be submitted to the Institution with forms of other public administrations, to receive such documents

from the Internet and electronic information processing media of public administrations, to deem notifications made to such

administrations as submitted to the Institution, to create on information processing media any kind of information and

document, to be prepared by the Institution, a sua sponte or upon requests of concerned employers, insurance holders or other

institutions, organizations or individuals regarding the execution of this Law, to decide on issuing information and documents

to be prepared in this way to the concerned persons only on Internet or similar communication media. Information and

documents to be prepared on electronic media shall be valid as official documents for judicial and administrative authorities.

In cases where real or artificial persons, who are bound to submit documents or information on Internet, electronic medium or

similar media, cannot submit the said documents or information to the Institution before the final time period foreseen in this

Law or cannot pay the premiums contained therein in legal time, due to failure of the Institution’s information processing

systems for any reason, if such individuals submit the documents and information and pay the premiums contained therein

before the end of fifth day following the date on which such problems are resolved, then such obligations shall be deemed to be

fulfilled in the time period foreseen in this Law.

Procedures and principles on the implementation of this Article shall be regulated by the Regulation to be issued by the

Institution.

Place of resolution of conflicts

ARTICLE 101 – Unless otherwise specified in the provisions of this Law, conflicts that may arise due to the execution of the

provisions of this Law shall be resolved in labour courts.

                                                         SECTION SIX

                                      Administrative Fines and Provisions for Dissolution

Administrative fines to be applied by the Institution

ARTICLE 102 – (Amended: 17/4/2008 – 5754/60th Art.)

Even if administrative fine is foreseen for the following actions in laws, of which basis is given by the Institution, in addition;

a) 1) Administrative fine equal to the minimum wage shall be applied to each insurance holder, who does not submit the

notification in paragraph one of Article 8 and in Article 61within the time period stated in this Law or in format and procedure

laid down by the Institution, or who do not send such on Internet, electronic medium or similar media although they are obliged

to submit them on such mediums.

2) Administrative fine equal to two times the minimum wage shall be applied for each insurance holder who is obliged to

submit the notification but are found, based on information and documents received from banks, organizations having

revolving funds, public administrations and institutions and administrations established by law, or on court judgments, or on

examinations carried out by Institution’s officers charged with duty of inspection and control, or on investigations, inspections

and examinations carried out by the control officers of other public administrations pursuant to their legislation, that they have

not submitted the notification stated in paragraph one of Article 8.

3) Administrative fine equal to five times the minimum wage shall be applicable to each insurance holder, in case it is found

out that notification is not submitted again in the cases listed in number (2) pf this item within one year following the receipt

date of information and documents received from banks, organizations having revolving funds, public administrations and

institutions and administrations established by law, or date of examinations carried out by Institution’s officers charged with

duty of inspection and control, or date of investigations, inspections and examinations carried out by the control officers of

other public administrations pursuant to their legislation, regarding the fact that notification is not submitted based on

workplace.

b) to individuals, who do not send the notification in Article 11 of this Law in the time period stipulated in this Law or in

accordance with the format or procedure determined by the Institution or, where it is made obligatory by the Institution to

submit such on Internet, electronic medium or similar media, the ones who do not submit them on said medium;

1) shall be charged with administrative fine equal to three times the minimum wage for public administrations and for those

who are obliged to keep books pursuant to balance sheet principle,

2) shall be charged with administrative fine equal to two times the minimum wage for those who are obliged to keep other

books,

3) shall be charged with administrative fine equal to the minimum wage for those who are not obliged to keep books.

c) for each and every action, to the individuals who do not submit the documents that must be submitted pursuant to Article 86,

in accordance with the format or procedure determined by the Institution or where it is made obligatory by the Institution to

submit such on Internet, electronic medium or similar media, who do not submit them on such media and in the time period

stipulated in this Law;

1) administrative fine equal to one fifth of the minimum wage shall be applicable per registered insurance holder, provided that

the amount is not over two times the monthly minimum wage in case the document is original,

2) administrative fine equal to one eighth of the minimum wage shall be applicable per insurance holder registered in each

attached document, provided that the amount is not over two times the monthly minimum wage in case the document is

attachment,

3) administrative fine equal to half of the minimum wage per insurance holder registered in each attached document, in case the

attached document is issued, sua sponte, by the Institution based on paragraph five of Article 86, provided that the amount shall

not be over two times the monthly minimum wage,

4) administrative fine equal to two times the monthly minimum wage in case it is found out, based on information and

documents received from banks, organizations having revolving funds, public administrations and institutions and

administrations established by law, or on court judgments, or on examinations carried out by Institution’s officers charged with

duty of inspection and control, or on investigations, inspections and examinations carried out by the control officers of other

public administrations pursuant to their legislation, that it is related with insurance holders who have not communicated, or

notified incompletely, their services or earnings to the Institution, independent of the facts whether the document is original, is

attachment or is prepared by the employer, or not,

shall be applied.

d) Administrative fine equal to two times the minimum wage shall be applied for each month attributed to incomplete

workmanship amount determined not to be communicated to the Institution, based on reports prepared by inspection and

control officers authorized to examine books and documents pursuant to Article 59 or by certified public accountants and

chartered accountants stated in paragraph five of Article 59.

e) To individuals who do not completely fulfil the obligation in paragraph two of Article 86 without any force majeure, within

fifteen days, in spite of Institution’s written warning;

1) administrative fine equal to twelve times the monthly minimum wage shall be applied for those who are obliged to keep

books based on balance sheet principle,

2) administrative fine equal to six times the minimum wage shall be applied for those who are obliged to keep other books,

3) administrative fine equal to three times the minimum wage shall be applied for those who are not obliged to keep books,

4) Provided that the amount of fine that should be applied for not presenting books and documents which are compulsory to

keep, besides not presenting all of the books and documents within due time, the section of the books, which are certified after

the legal certification period is over, before the certification date, books in which workmanship expenses are not entered, books

which are kept improperly or incompletely in a manner not to allow determining earnings subject to insurance premiums

accurately, the books of the concerned month in which the earnings and earning payments which will be used in calculating the

insurance premiums of any month are not entered to the books of that accounting year (including cases where earnings subject

to insurance premium is based on payment), shall not be valid and an administration fine equal to half of monthly minimum

wage shall be applied for each calendar day in which such invalidity cases occur; books, which should be certified before being

used but are used without certifications, shall not be valid and, considering the type of book that is obliged to be kept, an

administration fine pursuant to numbers (1) and (2) of this item; books which are kept pursuant to enterprise account principle

instead of balance sheet principles pursuant to Tax Procedure Code shall be invalid and an administrative fine shall be applied

pursuant to number (1) of this item;

5) Registration number of workplace, concerned month of the payroll, name and surname of insurance holder, social security

registration number of insurance holder, number of paid wage days, wage of insurance holder, amount of paid wage and

signature of insurance holder proving that the wage is received must be present on monthly wage payment payroll presented by

employers. Wage payment payrolls which do not include any one of the stated issues (excluding payments made in return to

receipt or via bank transfer for signature condition) shall not be valid and administrative fine equal to half of monthly minimum

wage shall be applied for each invalid wage payment payroll,

Administrative fines shall not be applied separately for invalidity actions for books and documents found to be invalid, partially

or fully, among the ones submitted to examination after the end of the presentation period; administrative fine shall be applied

pursuant to numbers (1), (2) and (3) of this item considering only the type of book.

f) Administrative fine equal to two times the monthly minimum wage shall be applied to individuals who do not fulfil their

obligations stated in paragraph five of Article 85 and in paragraph six of Article 86, within stated time period.

g) Administrative fine equal to monthly minimum wage shall be applied to institutions and organizations and artificial persons,

who do not fulfil the obligations stated in paragraph three of Article 8, in paragraph three of Article 9 for the ones stated in item

(b) of paragraph one the same Article, in paragraph three of Article 47 and paragraph one of Article 90. Administrative fine

equal to one tenth of monthly minimum wage per insurance holder shall be applied to public administrations and banks which

do not fulfil the obligations stated in paragraph seven of Article 8.

h) Administrative fine equal to monthly minimum wage for each notification obligation not fulfilled, to trade registry offices

which do not fulfil their notification obligations stated in paragraph three of Article 11 in legal time period and to institutions

and organizations which do not fulfil their obligation stated in paragraph six of the same Article in legal time period.

ı) Institution officers charged with duties of inspection and control;

l) cannot be hindered by the employers, insurance holders, workplace owners and other individuals related with this work when

they carry out their inspection and investigation duties arising from this Law; even if their actions constitute another offence,

administrative fine at five times monthly wage shall be applied to the hindering parties.

2) are forced or threatened by employers, insurance holders, workplace owners and other individuals related with this work in

order to hinder them from carrying out their duties, shall be sentenced in accordance with paragraph two of Article 256 of

Turkish Criminal Code, in case the action does not require a heavier punishment. In addition, administrative fine equal to ten

times minimum wage shall be applied to the committers of such offence.

i) Administrative fine equal to five times monthly minimum wage shall be applied to public administrations, banks,

organizations having revolving funds, institution and organizations established by law, and other real and artificial persons,

who does not submit information and documents requested by the Institution in accordance with Article 100 of this Law

without any force majeure, and to two times the monthly minimum wage shall be applied in case of late submission.

Penalties foreseen in items (a) and (b) of paragraph one of this Article shall be applied at a rate of two thirds in case the

notifications are submitted by the concerned parties after the legal time period of the notification, excluding the ones prepared

based on court judgments, on examinations carried out by Institution’s officers charged with duty of inspection and control, or

on investigations, inspections and examinations carried out by the control officers of other public administrations pursuant to

their legislation.

Administrative fine application shall not relieve the obligation of submitting documents stated in Articles 8, 11 and 86 to the

Institution.

Administrative fines shall accrue upon notification to the concerned party. These shall be deposited to the Institution or to

relevant accounts of the Institution; within fifteen days following the date of notification or an objection may be placed to the

Institution within the same period. Objection shall suspend the transaction. Individuals whose objections are refused by the

Institution may apply to the competent administrative courts within thirty days following the date of notification of the

decision. Administrative fine shall be finalized in case application is not made in this time period.

Where the administrative fines are paid in advance within fifteen days following the date of notification, without placing any

objection to the Institution or resorting to courts, three fourths of this amount shall be collected. Advance payment shall not

affect the right to apply to courts against administrative fine. However, in case the Institution or the court reaches to a decision

in favour of the Institution, then the one fourth fine amount not collected before shall be collected considering the provision of

paragraph two of Article 89.

Applying to the court shall not terminate the follow – up and collection of the administrative fine. Administrative fines not paid

within fifteen days following the date of notification shall be collected with the default fine and default increment to be

calculated pursuant to the provision of Article 89.

Administrative fines shall be subject to a time limit of ten years. Time limit shall start on the committal date of action.

Provisions of Offences Law 5326 dated 30/3/2005 shall be applied to administrative fines in cases where no provisions are

found in this Law and in Social Security Institution Law Number 5502 dated 16/5/2006.

Administrative sanctions and dissolution

ARTICLE 103 – (Amended: 17/4/2008 – 5754/61st Art.)

As a result of the examination to be carried out by the Institution about the health – care service provides who are determined;

a) to issue health – care service invoices although not provided the health – care service,

b) to prepare false invoices and documents on which invoice is based,

c) to show health – care services held out of the scope pursuant to Article 64 as if the health – care services included in the

scope,

d) to provide health – care service to the individuals who do not have the right for health – care services and to invoice it to the

Institution,

e) to charge additional fee above the upper limit determined as per Article 73,

shall hold subject to legal proceedings pursuant to general provisions. Inappropriate amount paid by the Institution due to such

actions shall be taken back pursuant to Article 96. In addition, contracts between the Institution and such health – care service

providers who determined to have committed such actions or have acted in violation of the provisions in the contracts for

purchasing health – care services may be annulled and a subsequent contract may not be entered for a period to be determined

by the Institution.

Damages caused by the health – care service providers who cause damages to the Institution due to not fulfilling the obligation

of identifying pursuant to Article 71 and to providing health – care services to another person shall be taken back.

                                                       SECTION SEVEN

                                     Abrogated, Amended, Final and Interim Provisions

                                                           PART ONE

                                              Amended and Abrogated Provisions

References in other laws

ARTICLE 104 – (Amended first paragraph: 17/4/2008 – 5754/62nd Art.) Provided that the provisions, non abrogated with

this Law, are preserved, references made to Law Number 506 dated 17/7/1964, Law Number 1479 dated 2/9/1971, Law

Number 2925 dated 17/10/1983, Law Number 2926 dated 17/10/1983, and Law Number 5434 dated 8/6/1949, and references

made to rights, aids and obligations of retirement, invalidity, incapacity and social insurance, partnership and insurance status,

conditions for widows, orphans and right holders, retirement bonus, additional payments, health – care services or payments on

treatment prices shall be deemed to be made to the relevant Articles of this Law.

Reference to the TR Pension Fund regarding the payment of out – of – permanent staff compensation in Turkish Armed Forces

Personnel Law Number 926 dated 27/7/1967, and references to TR Pension Fund, Social Insurance Institution and to Bağ – Kur

in other laws shall be deemed to be made to the Institution.

Non applicable provisions (1)

ARTICLE 105 – (Amended: 17/4/2008 – 5754/63rd Art.)

Provisions of other laws contrary to this Law shall not be applied excluding Article 30 of Law Number 5335 dated 21/4/2005,

Article 4 of Law Number 3671 dated 26/10/1990, and paragraph eleven of Article 5 of Decree in lieu of Law number 285 dated

10/7/1987.

Abrogated provisions

ARTICLE 106 – (Amended: 17/4/2008 – 5754/64th Art.)

1) Articles of Social Insurances Law Number 506 dated 17/7/1964, excluding Articles 142 and 143, appended Article 36,

provisional Article 20, provisional Article 81 and provisional Article 87,

2) Articles of Traders and Artisans and Other Independent Works Social Insurance Institution Law Number 1479 dated

2/9/1971, excluding Articles 83, 84, provisional Article 10 and appended provisional Article 6,

3) Article 5 of Headmen Benefit and Social Security Law Number 2108 dated 29/8/1977,

4) Individuals Working on Own Name and Account in Agriculture Social Insurance Law Number 2926 dated 17/10/1983,

5) Law Number 2829 dated 24/5/1983 on Joining Services Subject to Social Security Institutions,

6) Articles 1 through 5, 13 through 17, 24 and 33 of Agricultural Workers Social Insurances Law Number 2925 dated

17/10/1983,

7) Articles 107, 209 and appended Article 22 of Public Servants Law Number 657 dated 14/7/1965,

8) Articles 12 through 19, 23, 30 through 39, 41 through 55, 57 through 59, 61 through 64, 66 through 71, first, second and

third paragraphs of Article 72, Articles 73 through 80, 82 through 88, 90 through 100, 102 , 104 through 124, 127 through 129,

131 through 135, appended Article 2 through 4, appended Articles 8 and 9, 11, appended Articles 13 through 19, 21 through

23, 25 through 27, 29 through 30, items (a) and (b) of appended Article 31, appended Articles 32 through 39, 46 through 49, 56

through 57, 59, 67 through 70, 72 through 76, 78, 80, provisional Articles 8, 15, 16, 54, 65, 85, 86, 88, 96 through 98, 103, 104

, 109 through 113, 115 through 118, 120, 139 through 140, 146, 147, 150 through 151, 153, 157, 159, 161 through 166, 170,

171, 173, 176, 180, 182 through 186, 190 through 192, 195 through 200, 203, 204, 207 and 208, 210 through 212, 216, 218

through 220, appended provisional Articles 1, 2, 7, 8, 11, 19, 20, 22 and 23,

9) Provisional Article 1 of Law Number 3841 dated 1/10/1992, Provisional Article 1 of Law Number 4049 24/11/1994 and

Provisional Article 1 of Law Number 4677 dated 13/6/2001,

10) Provisional Article 3 of Decree in lieu of Law number 311 dated 14/1/1988 on Civil Servants and other Public Servants and

on Amending Certain Laws,

11) paragraph five and sentence two of paragraph of Article 50 and six item (C) of Article 56 of Unemployment Law Number

4447 dated 25/8/1999,

12) Articles 186 through 188 and 191 of Law on Practice of Law number 1136 dated 19/3/1969,

13) Articles 201 through 203 of Law on Notaryship number 1512 dated 18/1/1972,

14) item (d) of Article 3 and provisional Article 3 of Health – Care Services Fundamental Law Number 3359 dated 7/5/1987,

15) The Law number 399 dated 22/1/1990 on Regulating the Personnel Regime in State Economic Enterprises and the

“expression inpatient and outpatient treatments at public and private health organizations” in Article 32 of Decree in lieu of

Law number 233 on Abrogating Certain Articles,

16) Article 89 of Police Organization Law Number 3201 dated 4/6/1937,

17) Article 18 of Public Intelligence Services and National Intelligence Organization Law Number 2937 dated 1/11/1983,

18) The expression “and are treated” in item (f) and the expression “and are treated” in item (g) of Article 21 of Law Number

3713 dated 12/4/1991 on Fighting Against Terrorism,

19) The expression “and treatment expenses of injured or disabled” in paragraph one of Article 4 of Law Number 2453 dated

23/4/1981 on Granting Chas Compensation and Pension to Personnel Assigned to Abroad Duties,

20) Paragraphs three and four of Article 10 of Law Number 7269 dated on 15/5/1959 Aids to be Made and Measures to be

Taken for Disasters Effecting General Life,

21) Article 7 of Law Number 2022 on Putting Needy, Weak and Forlorn Turkish Citizens Over the Age of 65 on Pension dated

1/7/1976,

––––––––––––––––

(1)                                                                The title of this part was “Amended, appended and not applicable

provisions”; however it is amended by Article 63 of Law Number 5754 of 17/4/2008 as applied in the text.

22) Paragraph two of Article 2 of Law Number of 1005 of 24/2/1968 on Putting Individuals Awarded with medal for Service in

the Turkish War of Independence on Honorary Pension from Military Service Planning,

23) Item (c) of Article 18 and Article 20 of Allowance Law Number 6245 dated 10/2/1954,

24) Articles 7, 11, provisional Articles 1 through 4 of Law Number 3201 dated 8/5/1985 and “foreign currency” expressions in

the same Law

25) Article 4 of Law Number 5458 dated 22/2/2006,

26) In Labour Law Number 4857 dated 22/5/2003, in paragraph five of Article 65, the expression “Premiums for sickness and

maternity insurance of the worker in the period where short working benefit is received shall be transferred to the Social

Insurances Institution, by Unemployment Insurance Fund, at a rate of 2/3. Such premiums shall be calculated over the lowest

earning limit used in the calculation of insurance premiums.”,

27) Article 23 of Banking Law Number 5411 dated 19/10/2005,

are abrogated.

Law Number 3816 dated 18/6/1992 shall be abrogated two years after the effective date of this Law, and appended Article 36

and provisional Article 20 of Law Number 506 shall be abrogated following the completion of transfer transactions stated in

provisional Article 20 of this Law.

Regulations

ARTICLE 107 – Regulations stated in this Law shall be issued within one year following the effective date of this Law. The

Institution has the authority to regulate procedures and principles on the execution of other Articles of this Law.

                                                          CHAPTER TWO

                                                    Provisional and Final Clauses

Certain provisional clauses concerning invalidity, age and survivors insurance

PROVISIONAL ARTICLE 1 – (Amendment: 17/4/2008 – 5754/68 art.)

Individuals who were subject to Social Security Act number 506 and Agricultural Workers Social Insurance Act before the

effective date of this Act are considered in the scope of sub clause (a) of first clause of article 4 of this Act; Act 1479 on Social

Security of Craftsmen and Artisans and Others who Work Independently, and abrogated by this Act, those who are subject to

Act 2926 on Individuals who Work on their Own Behalf and Own Account in Agriculture are considered in the scope of sub

clause (b) of first clause of article 4 of this Act; individuals who are subject to Act 5434 on Republic of Turkey Retirement

Fund are considered in the scope of sub clause (c) of first clause of article 4 of this Act.

Pensions, income and other allocations assigned or entitled in accord with Act 506, dated 17/7/1964, Act 1479, dated 2/9/1971

and Act 1479, dated 17/10/1983 and Act 2925, abrogated by this Act, Act 2926, dated 17/10/1983; and supplementary payment

paid in accord with article 1 of Act 5454, dated 8/2/2006 continue to be paid. Clauses of this Act and the abrogated act that has

become ineffective are implemented in the increase, decrease, cut off or reassignment of these incomes and allocations due to

status change.

As of the effective date of this Act, social welfare increase and restitution allocation amounts that are paid upon Act 506, dated

17/7/1964 and Act 1479, dated 2/9/1971 are paid as supplements to incomes and allocations of concerned people, based on

amounts that were paid on the effective date of this Act. Shares of title holders in income and allocations are taken as a base as

such the entirety of it will be distributed in the supplement of social welfare increase.

Allocations and incomes assigned to individuals who are considered to be insured upon sub clauses (a) and (b) of the first

clause of article 4 of this Act and to their survivors are increased in accord with the second clause of article 55. Insurance term,

actual service period and number of premium payment days mentioned in the scope of Acts 506, 1479, 2925, 2926 and 5434

are taken into consideration in insurance term required for universal health insurance application and number of premium

payment days.

Estimation of allocations to be assigned to works which are subject to social security acts, which were in effect prior to

this Act

PROVISIONAL ARTICLE 2 – (Amendment: 17/4/2008 – 5754/68 art.)

Old age pension to be assigned to individuals who are subject to Act 506, dated 17/7/1964, Act 1479, dated 2/9/1971, Act

2925, dated 17/10/1983, and abrogated by this Act, Act 2926, dated 17/10/1983 before the effective date of this Act are

estimated as follows:

a) Pension of insurance holder based on premium payment days until the effective date of this Act or pension belonging to

actual service period is estimated in accord with clauses of acts that were effective before this Act has taken effect, number of

total premium payment days or actual service period; proportion of pension that is to be estimated as of the effective date of

this Act or actual service period is estimated by multiplying update coefficient of each year for each year that passes until the

pension claim date.

b) Pension of insurance holder belonging to premium payment days in periods after the effective date of this Act that is to be

estimated based on total premium payment days in pension claim date in accord with article 29 clauses is as much as the part in

proportion to the number of premium payment days after the effective date of this Act. However, in ratio estimation of old –

age assistance assignment of insurance holders who have not completed 3,600 premium days before the effective date of this

Act, for each 360 days of service periods completing premium day numbers to 3,600 days before the effective date of the Act

and passing after the effective date of the Act, 3% ratio is taken as the basis.

c) Pension is made of partial pensions that are estimated in accord with sub clause (a) and (b). Pensions are also determined by

increasing them in accord with the last clause of article 29.

As of the effective date of this Act, principal criterion based on partial pension that are to be estimated within the criteria

system according to Act 506, dated 17/7/1964, provisional article 82 is determined based on the criterion, to be prepared based

on the number of calendar years in average annual income of the insurance holder, and on upper criteria setting tables.

Amount of minimum pension that is taken as the basis in pension calculation pertaining to pension for periods elapsing until

the effective date of this Act and previous total monthly amount, determined according to Act 506, dated 1777/1964,

provisional article 82, the second clause is based on the amount corresponding to the ratio of the number of premium payment

days that elapse until the effective date of this Act within the total premium payment days.

Pensions of individuals who make foreign service debt are estimated in accord with the clauses specified above.

New pensions of individuals who are considered as insured upon this Act, article 4, first clause, sub clause (a) and (b), of

individuals whose pensions are discontinued after assignment of old – age pension according to clauses of the pertaining act

before the effective date of this Act, of individuals who leave work and claim assignment of old – age assistance in writing is

estimated in accord with article 30 of this Act, sub clause three.

Invalidity benefits and survivors pensions are estimated based on the provisions that are specified in the clauses above for

insurance holders in the scope of this Act, article 4, first clause, sub clause (a); for insurance holder in the scope of sub article

(b), by considering periods that were taken as a base before the effective date of this Act, are estimated based on provisions of

article 27 or article 33.

The Act, which is to be taken as a base in monthly pension assignment to individuals who were insured or were participants

before the effective date of this Act, individuals who claim pensions after the effective date of this Act, individuals who are

subject to different social security institutions or more than one insurance states specified in this Act, is determined in accord

with provisions of Act 2829 pertaining to this Act and provisions of provisional articles of this Act are implemented in regard

to them. However, provisions of Act 5434 are not implemented to individuals who are not included in the scope of provisional

article 4 of this Act. Among the individuals to whom provisions of Act 5434 are to be implemented in accord with Act 2829

abrogated by this Act, for the individuals who are not covered in the scope of sub clauses (a) and (b) of first article of

provisional article 4 of this Act are taken as a basis.

The act that is to be taken as a base in the implementation of provisions of sub clause (a) is determined in accord with the

provisions of Act 2829 abrogated by this Act, excluding periods that elapse in the scope of sub clause (c) of first clause of

article 4 of this Act. In the unification of services that are subject to this Act and services made in insurances that are subject to

provisional article 20 of Act 506, provisions of Act 2829, abrogated by this Act and provisions of this clause are taken as a

base.

Implementation of previous legislation provisions (1)

PROVISIONAL ARTICLE 3 – (Amendment: 17/4/2008 – 5754/68 art.)

Provisions of current regulations and guidelines that are not contradictory to this Act continue to be implemented until

regulations and other formulations which are to be issued take effect.

Transitional provisions concerned with Act 5434

PROVISIONAL ARTICLE 4 – (Amendment: 17/4/2008 – 5754/68 art.)

As of the effective date of this Act, in accord with Act 5434, dated 8/6/1949; payment to individuals who are granted with

monthly pension, indemnity, war invalidity increase, other payments and assistance and who are granted with supplementary

payment is continued to be paid, as long as they have the conditions specified in Act 5434 for themselves, including provisions

abrogated by this Act. However, pensions and other payments of individuals who receive widow and orphan pensions due to

participants who have actual service period between 5 and 10 years are continued to be paid as long as they have the conditions

specified in articles 32, 34 and 37 of this Act.

Procedures are carried out in accord with provisions of Act 5434, including its provisions that are abrogated with this Act, for

individuals whose participations ended before the effective date of this Act and who claim allotment and individuals who claim

allotment in accord with provisions of Act 5434 before the date this Act has taken effect.

Procedures are carried out in accord with the first clause of article 47 of this Act for individuals who are participants in accord

with Act 5434 after this Act has taken effect and has started to work as subject to sub clause (c) of the first clause of article 4 of

this Act and who are in the scope of duty disability.

Unless there is no contradictory provisions exist in this Act; procedures are carried out in accord with provisions of Act 5434,

including its provisions abrogated with this Act, for individuals who are included in sub clause (c) of the first clause of article 4

of this Act as of the effective date of this Act while they were participants, individuals who worked as being subject to

provisions of Act 5434 before this Act has taken effect and restarted to work as being subject to sub clause (c) of the first

clause of article 4 of this Act and their widows and orphans.

Procedures are carried out in accord with provisions of Act 5434, including provisions that are abrogated by this Act

concerning granting, increasing, decreasing, discontinuing, re – starting, single payment, action continuation, recreate and

borrowing, other payments and assistance and retirement premiums of individuals who are in the scope of this article, and

provisions of abrogated Act 2829 are taken into consideration thereto in the implementation of this article.

––––––––––––––

(1)                                                                     Title of this article “Implementation of provisions of previous

legislation, state assistance and provisional payment for disability for service” has been modified as it is written in the text, with article 68 of

Act 5754, dated 17/4/2008.

For individuals who started to work as being subject to provisions of Act 5434 before the effective date of this Act and who

were hired according to the pertaining legislation before they started to work and individuals who have a medical board report

displaying that they are at least 40% disabled and individuals who document that they are at least 40% disabled from birth and,

among these individuals, those who are insured in the scope of sub clause (c) of the first clause of article 4 of this Act at the

pension claim date; old – age pension is granted based on provisions of this article, when they claim, with the condition of

declaration of at least 5400 days of long term insurance branch premium or retirement deduction payment. However, after

starting to work, as a result of investigation of reports which are to be issued duly by medical boards of health service

providers, authorized by the Institution, and of supporting medical documents, with the condition of assessing a ratio of work

strength loss of;

a) 50% to 59%, at least 5760 days,

b) 40% to 49%, at least 6480 days,

of long term insurance branch premium is declared for insurance holders, provisions of this clause are implemented on their

behalf.

Among individuals who work in public organizations with service contract or by agreement as of the effective date of this Act;

as long as individuals who are related with Act 5434 based on pertaining acts continue to work in the same statute, they are

considered to be insured in accord with sub clause (c) of first clause of article 4 of this Act and provisions of this article are

implemented on their behalf.

Procedures are carried out regarding deductions and compensations, actual service increase and nominal service period

compensations and 100% increase differences of individuals who were participants before the effective date of this Act and

who are included in the scope of sub clause (c), clause one, article 4 of this Act based on provisions of Act 5434, before this

Act has taken effect. (Amended second sentence:31/7/2008 – 5797/3 art.) An additional universal health insurance premium

is paid in the ratio of 12% of their pensions, which are the basis of their retirement deductions each month, for insurance

holders who are in this scope by public administrations from the date their duty, pertaining health service providing by public

administrations, is taken over by the Institutions based on the second clause of provisional article 12. General health premium

is paid thereto to retirement deductions each month from the date the assignments of public administrations, concerning health

service provision based on second clause of provisional article 12, are taken over by the Institution, in 12% ratio of their main

pensions to insurance holders in this scope by public administrations. Universal health insurance premium amounts are not

taken into account in the estimation of supplementary compensations that are to be paid for these, based on article 81, clause

(h) of the Act.

Pensions paid according to Act 5434 and pensions that are to be granted with this article are increased based on increases in

civil servant salary coefficients. In addition, civil servant salary increases that are to occur as a result of amendments in salary

scale, organization, permanent staff and similar acts after the effective date of Act 5434 are to be implemented for the old age,

invalidity, duty disability and survivors pensions allocated at the same service rank / grade and cadre title.

Successful education terms of individuals schooling in Police Academy and faculty and colleges on the account of Security

General Directorate as of the effective date of this Act or students who continue schooling on the account of Security General

Directorate while they were schooling on their own account and individuals who work in Security Services Class in the scope

of article 4, clause one, sub clause (c) are considered, if they request, as service by debiting the entirety of premium of

insurance holder and employer share belonging to these periods, according to their relevance on the debit claim date, based on

the minimum police officer or sergeant monthly salary subject to contribution.

The entirety of debit amount that is to occur as a result of this is paid by them within two years from the debit declaration date.

In addition, successful education terms of individuals who are nominated as regular petty officer following schooling on their

own account in faculty, college or vocational college of universities before the effective date of this Act are considered as

service, if they request, by debiting based on criteria in this clause based on retirement deduction of petty officer sergeant

receiving the least amount of monthly salary as of the debit request date.

Before the effective date of this Act, excluding individuals who served as mayor as a result of elections, individuals who get

paid position compensation, and depending on this, those who are paid representation or duty compensation in accord with

supplementary article 68 of Act 5434, abrogated by this Act before the effective date of this Act, among individuals who

receive retirement or old – age pension according to social security acts, those who hold monthly pension assignment based on

article 39 of Act 5434 abrogated by this Act, from the effective date of this Act, as of the effective date of this Act, and on the

other hand, to individuals who don’t hold conditions for monthly pension assignment in accord with article 39 of Act 5434

abrogated by this Act, from the date they hold these conditions, by considering conditions specified in supplementary article 68

of Act 5434, abrogated by this Act, are paid position compensation which a precedent mayor receives, and depending on this,

representation or duty compensation amount, by adding retirement or old – age salaries that they receive. The said

compensations are paid by adding to salaries of individuals who served as a mayor as a result of elections before the effective

date of this Act and among the individuals who are granted with old – age pension while they are insured according to this Act

those who hold conditions for monthly pension assignment according to article 39 of Act 5434 abrogated by this Act, within

the conditions specified in this clause, by considering provisions of provisional articles 2 and 4 of this Act. When individuals

who served as a mayor as a result of the effective date of this Act and those who passed away hold the conditions specified in

article 32 of this Act, by considering the conditions specified in supplementary article 68 of Act 5434 abrogated by this Act as

well, according to provisions of article 34, provisional article 1, 2 and 4 of this Act, the said compensations are paid by adding

to their survivors pension from the effective date of this Act for those who passed away before the effective date of this Act,

and from the death date for those who passed away after the effective date of this Act. Among individuals who served as a

mayor as a result of elections before the effective date of this Act, those who receive invalidity pension and those who are to

hold right for invalidity pension, without any regard to conditions for pension allocation specified in article 39 of Act 5434

abrogated by this Act, are benefited from compensation rights specified above. As compensation amounts are paid according to

this clause, they are collected from the Treasury.

Follow up and collection processes of claims emanating from Act 5434 and belonging to terms before the effective date of this

Act are conducted in accord with pertaining provisions of Act 5434, abrogated by this Act by the Institution. However, follow

up and collection processes initiated by associated units of the Ministry of Finance before the effective date of this Act are

finalized by them.

In case insurance holders in the scope of sub clause (c) of clause one, article 4 of this Act who have debits, with their recreated

services, are entitled to monthly pension in accord with this Act and apply for it, they are granted with a monthly pension

starting from the beginning of the month after the money payment date. However, periods for which retirement compensation

is paid are not taken into consideration in retirement compensation.

In case survivors of the insurance holder who passed away before the effective date of this Act and do not have sufficient

number of premium payment days for a monthly pension assignment according to pertaining provisions abrogated by this Act

earn the right for a survivors pension in terms of number of premium payment days in accord with provisions of this Act, their

salaries to be estimated according to provisions of Act 5434, abrogated by this Act are paid at the beginning of the month

following the application date in accord with articles 32, 34 and 37 of this Act.

In case individuals who were partners before the effective date of this Act in accord with Act 5434 and did not hold insurance

in the scope of clause one, article 4 of this Act after the effective date of this Act become indebted, with their recreated services

and earn right for a monthly pension according to clause one, article 4 of this Act and apply for it, they are granted with a

monthly pension at the beginning of the month after the payment of the money indebted according to this article and belonging

to their recreated services, by estimating in accord with provisions of Act 5434, abrogated by this Act. In case survivors earn

the right for a monthly pension by the implementation of provision of this clause, their estimated pensions are paid in accord

with article 32, 34 and 37 of this Act. However, these terms are not taken into account in retirement compensation.

Eliminated periods of individuals, whose services are eliminated due to a statutory of deductions or full payments, are regarded

as services that are to be unified in accord with this Act.

Individuals whose appointments are ended between 23/4/1999 and 14/2/2005 due to disciplinary action according to personnel

legislation and whose disciplinary punishments, given in accord with Act 5525, dated 22/6/2006 are lifted with all of their

outcomes apply to the Institution within six month from the effective date of this Act, periods of unpaid premium or deductions

between the date they leave their appointment and the date they start work, if they request, by assigning a class to each three

years and a degree for each year of the period, for which no premium or deduction are paid to classes and grades regarding the

appointment they quit, or of the period they want to be indebted for, and based on their education levels, are considered as

service, by taking the amounts as a base which are to be figured by multiplying class, grade and supplementary scales, to be

determined not to exceed the classes that they can reach in article 36 of Act 657 on Public Sector Employee, with the total of all

elements of monthly estimation which is the basis for retirement deduction, and by indebting deductions and corresponding

ratios again at that date. The entirety of the debt amount to arise from this is paid by them in equal instalments or in a single

payment within two years from the date the debt is communicated.

Single payment and transitional provisions of regeneration

PROVISIONAL ARTICLE 5 – (Amendment: 17/4/2008 – 5754/68 art.)

Part of full payments belonging to service terms before the effective date of this Act, to be made according to this Act, to

insurance holders who are in the scope of sub clause (a) and (b), clause one, article 4 of this Act, is paid an amount that is

figured by multiplying update coefficient of each year, in accord with some provisions of the pertaining act, abrogated by this

Act, by estimating it as of the effective date of this Act, for years that elapse from the effective date of this Act until the written

claim date regarding full payment, by adding to total payment amount that is estimated in accord with this Act for the periods

after the effective date of this Act.

Full payment is made to insurance holders in the scope of sub clause (a) and (b), clause one, article 4 of this Act, before the

effective date of this Act and in regeneration or indebting of eliminated services in accord with article 31, 36 and 41, as of the

effective date of this Act, the amount that is estimated according to pertaining provisions of the act, abrogated by this Act, by

multiplying update coefficient of each year is taken into account for years that elapse between the effective date of this Act and

the written request date regarding the regeneration claim.

Transition provisions concerned with Act 506

PROVISIONAL ARTICLE 6 – Provision that is concerned with the start of insurance period from the completion of 18 years

of age specified in clause two, article 38 of this Act is not implemented for individuals whose invalidity, old – age and survivors

insurances are registered before 1/4/1981 in accord with Act 506, dated 17/7/1964.

Social assistance increases unpaid to the Institution by institutions and organizations which are specified in abrogated

supplementary article 24 of the Social Security Act, 506 are paid to the Institution by the Treasury to be collected from the

relevant institutions and organizations.

(Amended third clause: 17/4/2008 – 5754/69 art.) Workplace registrations made according to provisions of Act 506, dated

17/7/1964 is considered to be done according to provisions of this Act.

Work accident, occupational disease, motherhood, invalidity, old – age and survivors insurance premiums paid by individuals

who are subject to group insurance in accord with abrogated article 86 of the Social Security Act, 506, including universal

health insurance, are considered to be paid according to this Act. These periods are regarded as initiation period and number of

premium payment days in terms of insurance branches they are paid to.

States of individuals who continue group insurance in terms of invalidity, old – age and survivors insurances in accord with

abrogated article 86 of the Social Security Act, 506 as of the effective date of this Act are evaluated in the scope of article 4 of

this Act and they are regarded as insured in the scope of the sub clause pertaining to their states. Documents that are to be filed

by them or their employers have to be filed at the Institutions within three months the latest.

Total amount of retirement, ordinary invalidity or duty disability pensions granted in accord with provisional article 2 of Act

991, dated 23/1/1968 from funds that are turned over to Social Security Institution in accord with abrogated clause two, article

96 of the Social Security Act, 506, and pensions granted according to provisional article 1, clause one of Act 991, dated

23/1/1968, and survivors pensions (even if the receiver is only a single person) shall not be lower than 70% of the net minimum

wage.

For individuals who are to be considered as insured and granted with monthly pension in the scope of sub clause (a), clause

one, article 4 of this Act in terms of monthly pension assignment conditions;

a) (Abrogation: 17/4/2008 – 5754/69 art.)

b) (Amendment: 17/4/2008 – 5754/69 art.) A period of 5400 days specified in clause three, article 28, for the first time is

implemented as;

1) 4600 days for individuals who are considered to be insured between 30/4/2008 and 31/12/2008,

2) for individuals who are considered to be insured from 1/1/2009, by adding 100 days to 4600 days at the beginning of each

calendar year, not to exceed 5400 days,

c) (Amendment: 17/4/2008 – 5754/69 art.) A period of 3960 days specified in clause four, article 28 is implemented for the

first time as;

1) 3700 days for insurance holders who are considered to be insured between the effective date of this Act and 31/12/2008,

2) not to exceed 3960 days, by adding 100 days to 3700 days at the beginning of each calendar year for insurance holders who

are considered to be insured from 1/1/2009,

d) (Amendment: 17/4/2008 – 5754/69 art.) A period of 4320 days specified in sub clause (a), clause five, article 28 is

implemented for the first time as;

1) 3700 days for insurance holders who are considered to be insured between the effective date of this Act and 31/12/2008,

2) by adding 100 days to 3700 days at the beginning of each calendar year, not to exceed 4320 days, for insurance holders who

are considered to be insured from 1/1/2009,

e) (Amendment: 17/4/2008 – 5754/69 art.) A period of 4680 days specified in sub clause (b), clause five, article 28 is

implemented for the first time as;

1) 4100 days for insurance holders who are considered to be insured between the effective date of this Act and 31/12/2008,

2) by adding 100 days to 4100 days, not to exceed 4680 days for individuals who are considered to be insured from 1/1/2009.

(Supplementary clause: 17/4/2008 – 5754/69 art.) Insurance of Turkish workers; who are taken to countries which do not

have a social security agreement by employers, conducting business at such countries, to be employed and continuing their

group insurance that is subject to only invalidity, old – age and survivors insurances, before the effective date of this Act; and

insurance of covered individuals who are taken to the said countries as voluntarily covered individuals, in the scope of sub

clause (g), article 5 of this Act, are made within three months from the effective date of this Act by their employers and

liabilities pertaining to this are exercised.

Conjoint transitional provisions of Acts 506, 1479, 5434, 2925 and 2926

PROVISIONAL ARTICLE 7 – (Amendment: 17/4/2008 – 5754/68 art.)

Insurance initiations and service periods, increases for actual service period, nominal service periods, indebted and revived

periods and insurance periods in accord with Act 506, dated 17/7/1964 and Act 1479, dated 2/9/1971 and Act 2925, dated

17/10/1983, and Act 2926, dated 17/10/1983, abrogated by this Act, 8/6/1949 and Act 5434, dated 17/7/1964 and provisional

article 20 of Act 506 are evaluated according to provisions of acts they are subject to until the effective date of this Act.

Terms spent by individuals who work at appointments worthy of actual service terms before the effective date of this Act

according to Act 635, dated 24/6/1965, Act 3269, dated 18/3/1986, Act 644, dated 22/7/1965, Act 2937, dated 1/11/1983, Act

6940, dated 25/3/1957 and Act 3671, dated 26/10/1990 and article 32 of Act 5434 are taken into account in the completion of

3600 days, sought in accord with article 40 of this Act. In the evaluation of terms spent before the effective date of this Act at

works, which are specified in the scope of nominal service period of supplementary article 5 of Act 506, dated 17/7/1964 and

not specified in article 40 of this Act, 3600 premium payment condition is not sought.

In case there is an unpaid portion remaining from indebted amounts that belong to insurance holders who are in the scope of

sub clause (c), clause one, article 4 of this Act due to their indebted services, these are continued to be collected from their

pensions in the ratio of retirement deduction.

In the estimation of monthly salaries, gaining of debts belonging to the effective date of this Act which are made in accord with

article 41 of Act 3201, dated 8/5/1985 is evaluated according to provisions of pertaining acts, abrogated by this Act. However,

when periods belonging to terms before the effective date of this Act are indebted, provisions of article 41, Act 3201, dated

8/5/1985 are implemented for insurance holders who are in the scope of sub clause (a), clause one, article 4 of this Act.

In case income or monthly pension is received from more than one file before the effective date of this Act, and in case income

or monthly pension is received from the new file after the effective date, including income and monthly amount in the file that

is to be granted, comparisons are made and the file with the lower amount is removed from the file scope.

Number of premium payment days of individuals who are regarded as mandatorily covered in the scope of acts specified in the

first clause and who benefit from health insurance voluntarily is also assessed as number of premium payment days for

universal health insurance.

Terms of individuals prior to the initiation of insurance who are covered for the first time in accord with sub clause (c), clause

one, article 4 after the effective date of this Act, if they become indebted in accord with article 41 and 46 of this Act,

supplementary article 31 of Act 5434 and Act 3201, this does not mandate the insurance initiation date to be carried back and

the implementation of provisional articles of this Act for them.

Implementation of provisions of this Act, before its effective date, is continued regarding nominal service terms of individuals

who were in position and appointment worthy of nominal service term, in accord with pertaining provisions of Act 5434 before

the effective date of the Act and who continue to work in the scope of sub clause (c), clause one, article 4 of this Act.

 Provisions of second and third clauses of article 28 of this Act are implemented for individuals who become insurance holders

or participants for the first time in accord with acts 506, 1479, 5434, 2925 and 2926 after 30/4/2008. Provision of last sentence

of sub clause (b) of the first clause of provisional article 2 is not implemented for them.

Transitional provisions of Act 1479

PROVISIONAL ARTICLE 8 – (Amendment: 17/4/2008 – 5754/68 art.)

Insurance right and liability of individuals, who are not registered and recorded until the effective date of this Act, even though

they hold the attribution for insurance in accord with other sub clauses of this Act, other than sub – sub clause (4) of sub clause

(b) of clause one, article 4 of this Act, start from the effective date of this Act. Right and liability of individuals who are

considered as covered in accord with sub – sub clause (4) of sub clause (b) of clause one, article 4 of this Act start in accord

with sub clause (b) of first clause of article 7.

However, indebted amount over 32% of prime earning at the claim date is estimated in accord with sub clause (a) of the second

clause, article 80, for individuals who are considered as covered in accord with sub – sub clauses (1) and (3) of sub clause (b) of

the first clause, article 4 of this Act and also whose insurance was initiated from the effective date of this Act, with the

condition of having tax liability periods elapsing between the effective date of this Act and 4/10/2000, for the entirety of tax

liability periods, and this is communicated to the insurance holder. In case insurance holder pays the indebted amount

communicated to them within 6 months from the communication date, these terms are considered as insurance periods. In case

the indebted amount communicated to the insurance holder is not paid within this period in full, these terms are not evaluated

as insurance period and the paid amount is reimbursed in accord with article 89 of this Act.

Execution proceedings which were initiated before the effective date of this Act and in accord with article 53 of Act 1479 and

2004 Execution and Bankruptcy Law are finalized by implementing provisions of the said Act.

Some transitional provisions pertaining the retirement age (1)

PROVISIONAL ARTICLE 9 – Among individuals who are considered as covered for the first time between 8/9/1999 to

30/4/2008, those who are in the scope of sub clause (a), clause one, article four are benefited from old – age monthly pension

with the condition of completing 58 years of age if they are women and completing 60 years of age if they are men, and with

the condition of payment of 7000 days of invalidity, old – age and survivors insurance premium, or completing 58 years of age

if they are women, 60 years of age if they are men and being insured for 25 years and with the condition of payment of at least

4500 days of invalidity, old – age and survivors insurance premium.

(Amended second clause: 17/4/2008 – 5754/70 art.) Individuals who are in the scope of sub clause (b), clause one of article 4

and also considered to be covered for the first time between 8/9/1999 and 30/4/2008 are benefited from partial old – age

monthly pension, with the condition of completing 58 years of age if they are women, completing 60 years of age if they are

men and payment of exactly 25 years of insurance premium or with the condition of completing 60 years of age if they are

women, completing 62 years of age if they are men and payment of at least exactly 15 years of invalidity, old – age and

survivors insurance premiums.

(Supplementary clause: 17/4/2008 – 5754/70 art.) Individuals who are in the scope of sub clause (c), clause one of article 4

and also considered as insured for the first time from 8/9/1999 to 30/4/2008 are benefited from partial old – age monthly

pension, with the condition of completing 58 years of age if they are women, 60 years of age if they are men and payment of

exactly 25 years of insurance premium or with the condition of completing 61 years of age and payment of at least exactly 15

years of invalidity, old – age and survivors insurance premium.

Individuals who are insured in the scope of Act 2925, dated 17/10/1983 and also who are considered to be covered for the first

time from 8/9/1999 to 30/4/2008 are benefited from old – age monthly pension; with the condition of completing 58 years of

age if they are women, 60 years of age if they are men and having been insured for fifteen years and payment of 3600 days of

invalidity, old – age and survivors insurance premium.

Among individuals who are considered to be insured according to the Social Security Act, 506 with some of its provisions

abrogated before the effective date this Act;

a) Individuals who work permanently in underground work places of mining work places determined by the Ministry for at

least 20 years and with the payment of at least 5000 days of invalidity, old – age and survivors insurance premium at these

works are granted with old – age monthly pension with their written claims, without seeking age conditions specified in sub

clause (a), clause two, article 28.

b) Individuals who work permanently in underground work places of mining work places determined by the Ministry for at

least 25 years and with the payment of at least 4000 days of invalidity, old – age and survivors insurance premium at these

works are granted with old – age monthly pension with their written claims, without seeking age conditions specified in sub

clause (a), clause two, article 28, same as insurance holders who paid 8100 days of premium.

c) Individuals who complete 50 years of age and spend at least 1800 days of their work which is subject to invalidity, old – age

and survivors insurances in underground work places of mining work places determined by the Ministry also are benefited

from old – age monthly pension with the other conditions specified in the first clause.

––––––––

(1)                                                                   “Effectiveness of the Act” statement included in article 70 of Act 5754,

dated 17/4/2008 and in clause one and three of this article has been modified as “30/4/2008” and it has been entered into the text.

(Amended fifth clause: 17/4/2008 – 5754/70 art.) In case work terms of insurance holders who started to work in works

specified in the fifth clause before the effective date of this Act is at least 1800 days, spent in these works before or after the

effective date of this Act, one fourth of these works is added to the number of premium payment days. Invalidity, old – age and

survivors insurance premium for them is 23% of prime earning of insurance holder. 9% of this is insurance holder share and

14% of it is employer’s share. Provisions of this Act pertaining price increases in actual service period are implemented for

individuals who started to work in underground works or in works alternated with underground works for the first time after the

effective date of this Act.

Transitional provisions pertaining to invalidity and injury provisions of Act 506 (1)

PROVISIONAL ARTICLE 10 – Among individuals who are in the scope of sub clause (a), clause one, article 4 and also

insured for the first time before the effective date of this Act those who had an illness or disability to be considered as invalid

upon abrogated article 53 of the Social Security Act, 506 before the date they start to work as insured and therefore cannot

benefit from invalidity pension are benefited from old – age pension regardless of their age and with the condition of being

covered for at least fifteen years and payment of at least 3600 days of invalidity, old – age and survivors premium.

(Amended second clause: 17/4/2008 – 5754/71 art.) Procedures are carried out according to sub clause (b), clause (c),

abrogated article 60 of the Social Security Act, 506 and provisional article 87 for individuals who are insured before the

effective date of this Act and also have earned the right to benefit from tax reduction due to their invalidity before or after the

effective date of this Act.

In the cut off and reassignment of pensions, provisions of this Act before its effective date are effective for individuals who

benefited from tax reduction due to their invalidity before the effective date of this Act and who are also assigned with old – age

pension.

Replacement rate for pensions allocated according to the first and second clauses shall not be lower than the ratio estimated

over 5400 days.

(Supplementary clause: 17/4/2008 – 5754/71 art.) Invalidity pension is granted to individuals who make a request for

determination of their invalidity state before the effective date of this Act and to individuals who are determined that they were

disabled after the effective date of this Act with the condition of carrying other conditions in acts 506 and 2925 as well.

Lower limit of invalidity pension specified in clause four of article 55 and lower limit of invalidity pension specified in clause

two, article 33 is implemented in invalidity and survivors pensions that are to be assigned according to Act 2925, dated

17/10/1983 and Act 2926, dated 17/10/983, abrogated by this Act, by comparing the limits with old – age monthly pension

assigned upon the same acts.

(Supplementary clause: 17/4/2008 – 5754/71 art.) Pensions assigned to insurance holders who are insured since 1/1/2000 and

request monthly pension for invalidity and pensions granted to rightful beneficiaries of insurance holders who passed away

upon Act 506, dated 17/7/1964 are re – estimated based on the lower limit specified in provisional article 89 of Act 506 and as

of the initiation date of monthly pension. The differences that are to arise are paid to concerned individuals within four months

from the effective date of this article.

In the calculation of lower limits specified above, half determined according to the second clause of abrogated article 92 of the

Social Security Act, 506, and pensions for which no lower limit for pensions is applied according to clause five of abrogated

article 96 of the same Act and partial pensions granted according to social security agreements are not taken into account.

(Abrogated last clause:17/4/2008 – 5754/71 art.)

––––––––––––––

(1)                                                                  Whilst the title of this article was “Transitional provisions of invalidity,

impairment and transitional provisions of social security support premium payment of Act 506”, it was modified with article 71 of Act 5754,

dated 17/4/2008 as it was entered in the text.

Transitional provisions pertaining registration of insurance holders, insurance registry number and employees working

at international representative offices

PROVISIONAL ARTICLE 11 – (Modified first clause: 17/4/2008 – 5754/72 art.) A conjoint data bank is formed for

insurance holders who are registered in the current social security institution before the effective date of this Act and for

insurance holders who are going to be registered for the first time and for their rightful beneficiaries. In the registration of these

insurance holders, Turkish Republic identification numbers are accepted as social security numbers.

Previous security registry numbers of insurance holders are continued to be used until they are registered according to this Act.

In the estimation of daily earnings of insurance holders according to article 17 of this Act who are in the scope of sub article (b)

of clause one, article 4 of this Act; criteria that are taken into account in the estimation of earnings, base of premium of periods

after the effective date of this Act are also taken into account in the estimation of earnings, base of premium of periods before

the effective date of this Act. (1)

(Supplementary clause: 17/4/2008 – 5754/72 art.) In the estimation of earnings as of the last calendar month of individuals

who work under service agreement and whose earnings for the three month – period are before the effective date of this Act,

which are the basis in daily earning estimation that is to be determined according to article 17 of the Act, provisions of Act 506,

abrogated by this Act are implemented.

Individuals who have permanent residence permission of a country in which the representative office is located or who have the

citizenship of this state among individuals who were appointed in international representative offices as insured at the effective

date of this Act or personnel with universal health insurance can be communicated with social security institutions of the

country they are in, without prejudice to provisions of international social security agreements and with the condition of

receiving positive opinion of the Ministry of Foreign Affairs.

(Supplementary clause: 17/4/2008 – 5754/72 art.) Public administrations which employ participants according to provisions

of Act 5434 before this Act has taken effect and which continue to employ individuals who are considered to be insured in the

scope of sub clause (c), clause one, article 4, after the effective date of this Act have to submit a workplace report in accord

with article 11 within a period that is to be determined by the Institution. In case a workplace report is not submitted during the

period that is to be determined by the Institution, monetary penalty is implemented according to sub clause (b) of article 102.

Transitional provisions of universal health insurance

PROVISIONAL ARTICLE 12 – (Amendment: 17/4/2008 – 5754/68 art.)

Until the formation of an infrastructure necessary for the start of insurance check of health service providers and other

provision processes in the implementation of this Act, health data are started to be recorded in writing and health certificates or

health cards are continued to be issued by the Institution.

Duties of public administrations concerned with the provision of health services, relevant recordings and processes in the

framework of rights and liabilities in abrogated acts continue until the date of takeover by the Institution. Takeover process is

completed within three years. (2)

In case health services of individuals earned upon abrogated provisions of the act are not included in the scope according to

provisions of this Act, they are continued to be provided by the Institution according to abrogated provisions of the Act until

the treatment is completed. In the estimation of 30 days estimated according to article 67, the state for the individual’s favour is

implemented. Treatment expenses of universal health insurance holder and individuals they are liable to care for which had

started before the effective date of this Act however which are invoiced after the effective date of this Act are covered by the

Institution.

––––––––––––––

(1)                                                                      With article 72 of Act 5754, dated 17/4/2008; the statement “(b) and (c)

sub clauses of the first clause” which is included in this clause has been modified as “(b) sub clause” and it is entered into the text.

(2)                                                                      With article 11 of Act 5797, dated 31/7/2008, the statement “However

this period shall not exceed six months” included in this clause has been modified as “Turnover period is completed within three years” and it

has been entered into the text.

Sub – sub clause (1) of sub clause (c) of first clause of article 60 of this Act is not implemented within two years from the

effective date of this Act. Within this period, with the condition of no changes in the states of individuals who have a green

card and individuals who are to receive a green card in the scope of Act 3816, dated 18/6/1992, without any need for another

process, are considered as universal health insurance holders within the scope of sub – sub clause (1), sub clause (c), clause one,

article 60 of this Act.

With the application to receive a green card in the scope of Act 3816, for individuals whose monthly income amount per person

in the family determined in accord with provisions of Act 3816 is determined to be between one third of minimum wage up to

minimum wage, one third of thirty day amount of lower limit of daily earning which is the basis of premium, determined

according to article 82, is accepted as the minimum wage amount, which is the basis of premium; for individuals whose

monthly income amount is determined to be between minimum wage up to twice as much as minimum wage, thirty day amount

of lower limit of daily income, which is the basis for premium, determined according to article 82 is accepted as minimum

wage amount, the basis of premium; for individuals whose monthly income amount is determined to be more than twice as

much as minimum wage, two times as much as thirty day amount of lower limit of daily income, which is the basis for

premium, determined according to article 82 is accepted as the minimum wage amount.

Individuals who are accepted as insured according to sub clauses (d) and (g), clause one of article 60, shall make their

declarations within two years after the effective date of this Act. Within this period, among individuals who are considered as

universal health insurance holders according to sub clauses (d) and (g), clause one, article 60; those who do not have a registry

claim and whose children under the age of 18 are benefited from health services, registry of these people’s children is done as

of the date of application to the health service provider. However, in provinces in which family physician implementation is

initiated, these people are included in the scope as universal health insurance holder and person they are liable to care for,

without any regard for the two year – period.

In health services received apt to the forwarding chain, initiated by family physicians, participation shares specified in clause

two, article 68 may be applied by decreasing them in a 50% ratio for a period of three years.

Determinations that are to be made according to the first clause of article 70 are completed within one year the latest from the

effective date of this Act. Within this period, Ministry of Health is authorized to delay the implementation of the second clause

of article 70 on province and county basis.

Individuals whose treatment assistances are met according to the pertaining acts are considered as universal health insurance

holder or the person to be taken care of by the universal health insurance holder, in the light of this Act. Female children for

whom there is a liability of care as of the effective date of this Act are considered as individuals to be cared for according to

this Act. However, when there is a change in their states, benefit conditions from health services are redefined in accord with

the provisions of this Act. Information regarding insurance holders and individuals for whom the insurance holder is liable to

care for is submitted to the Institution within three months the latest after the effective date of this Act.

Provisions of 211, Turkish Armed Forces Internal Service Act that are contradictory to this Act are implemented for a period of

two years after the effective date of this Act.

Insurance holders whose insurance states continue in the scope of Act 2925, dated 17/10/1983 and their spouses and children

who are worthy of health assistance hold the right to benefit from health services and other rights according to provisions of

universal health insurance.

Until the determination of costs of health services with their health service financing to be met by the Institution according to

article 63 and daily wages, transportation, hotel and meal expenses to be paid according to article 65, according to provisions of

article 72, which are to be paid by the Institution and until they are published, and until agreements are made with health

service providers according to provisions of article 73, procedures and forms which have been determined by the Institution

and health service costs and protocol and agreements are effective.

Transition elements regarding the implementation of Act 4046

PROVISIONAL ARTICLE 13 – (Amendment: 17/4/2008 – 5754/68 art.)

Individuals who receive work loss compensation in the scope of article 21 of Act 4046, dated 24/11/1994 are considered to be

insured and universal health insurance holder according to sub clause (a), clause one of article 4, however, they are not subject

to short – term insurance branches.

Insurance holders are not liable to report to the Institution thereto that they are insured.

As of the end of month after the payment of work loss compensation by Turkish Labour Placement Office, as soon as the

premiums of individuals who have received work loss compensation are transferred, it is considered that insurance holder

report and registry is done.

Insurance of individuals in this scope ends at the date their work loss compensation period ends. Provisions of article 9 of this

Act are not implemented for individuals whose work loss compensation ends.

Even though Turkish Labour Placement Office is liable for premium payment for individuals who benefit from work loss

compensation, they are not considered as work place and employer in the scope of this Act.

Transition provisions regarding social security support premium

PROVISIONAL ARTICLE 14 – (Supplement: 17/4/2008 – 5754/73 art.)

For individuals who were participants or insurance holder before the effective date of this Act, who were granted with duty

disability, invalidity and old – age or retirement pensions and individuals who pay social security support premium and

continue to work at the effective date of this Act, implementation of pertaining act provisions, abrogated by this Act, continues

regarding being subject to social security support premium. However;

a) For individuals who work in the scope of sub clause (a), clause one, article 4 of this Act, ratio of social security support

premium is the total that is figured by adding 30 percent ratio to the premium ratio which is determined in sub clause (c), clause

one of article 81, based on earnings that are the basis of premium, determined according to article 80. One fourth of 30 percent

ratio is the share of insurance holder and three fourth is the share of employer. Liable party for the premium payment for

individuals, who are subject to social security support premium and are considered in this scope, is their employer. Only work

accident and occupational illness insurance provisions are implemented for them.

b) For individuals who are considered to be insurance holders in the scope of sub clause (b), clause one, article 4 of this Act,

provisions that are specified in sub clause (b), clause three, article 30 of this Act are implemented, with the condition of

verification by receiving documents from the relevant public institutions and organizations, for the work periods, excluding the

periods in which they were inactive. This ratio is implemented as 12% in the year this article has taken effect, by increasing one

point in the following January of each year. However this ratio does not go over 15%.

c) Provisions of sub clause (c), article 5 of this Act are implemented, without implementing social security support premium,

for war disabled, for individuals whose pensions are estimated and paid upon the Prevention of Terrorism Act, 3713, dated

12/4/1991, the Act on Pecuniary Compensation and to Put People on Monthly Pension, numbered 2330, dated 3/11/1980 or for

people who receive duty disability pension according to pertaining acts concerned with provision of public order and security

and meanwhile, for individuals who continue to work as of the effective date of this Act and then to start to work afterwards by

being subject to this Act.

d) Regarding individuals who receive duty disability pension according to Act 5434 and continue to work upon sub clause (a)

and (b), clause one, article 4 of this Act as of the effective date of this Act, with their written request within one month from the

effective date of this Act, provisions of this Act on work accident and occupational illness insurance and long term insurance

branches or social security support premium are implemented. Among these individuals, the ones who pay long term insurance

premium and do not file a written request within the specified period, provisions on work accident and occupational illness are

implemented and no social security support premium is deducted. Regarding individuals who were participants before the

effective date of this Act and were granted duty disability pension after the effective date of this Act according to provisions of

Act 5434 and of these individuals those who start to work upon sub clause (a) and (b), clause one, article 4 of this Act, with

their written request, processes are carried out. No universal health insurance premium is taken thereto form individuals who

are included in the scope of these sub clauses. Duty disability pensions are assigned and paid to individuals who receive

according to Act 3713, participants who change class or work and continue to work, individuals who receive duty disability

pension due to events included in the scope of the same Act and individuals who work upon sub clause (c), clause one of article

4 of this Act or soldiers and non-commissioned officers who start to work afterwards, starting from the beginning of the month

following their application dates after the effective date of this Act, without any need for them to leave their works according to

provisions of Act 5434, including provisions that are abrogated by this Act, upon retirement sending approval that is to be

submitted. Procedures are carried out according to provisions of Act 5434 including provisions abrogated by this Act, regarding

individuals who are in this scope and retire from their appointments.

Transition provision concerned with report of earnings that is the basis for premium

PROVISIONAL ARTICLE 15 – (Supplement: 17/4/2008 – 5754/73 art.)

                                                                                                                                  87

In case independent insurance holders who work on their own behalf and account, excluding sub – sub clause (4) of sub clause

(b) of clause one, article 4 of this Act, the ones who register and record as insurance holders before the effective date of this

Act do not declare their earnings that are the basis of premium, which is determined according to article 80 of this Act, monthly

premiums that are to be paid are taken over amounts that correspond to income steps to which they pay until they make a

declaration.

However, these amounts shall not be lower than earning amount which the basis for monthly premium, estimated according to

the lower limit of minimum daily earning, specified in article 82.

Transition provisions regarding insurance holders who operate in agriculture on their own behalf and account (…)(2)

and female insurance holders who benefit from artisan exemption (1)(2)

PROVISIONAL ARTICLE 16 – (Supplement: 17/4/2008 – 5754/73 art.)

For village administrative officers who are included in sub clause (b), clause one, article 4 of this Act and individuals specified

in sub – sub clause (4) and the expression “thirty” specified in sub clause (a), clause two of article 80 and individuals who are

specified in sub – sub clause (4), the expression “thirty” specified in sub clause (ı), clause one, article 6 of this Act is

implemented as “fifteen” for the year this article has taken effect and it is increased with one point for the following each year,

not to exceed thirty times of the daily earning, which is the basis of the premium.

(Supplementary clause:17/4/2008 – 5763/25 art.; Abrogation: 31/7/2008 – 5797/11 art.)

–––––––––––––

(1)                                                                With article 25 of Act 5763, dated 15/5/2008, the title of this article

“Transitional provision regarding insurance holders who operate in agriculture on their own behalf and account” has been modified as it is

entered into the text to be effective from 1/10/2008.

(2)                                                                With article 11 of Act 5797, dated 31/7/2008; the phrase “Individuals

who are employed at courses, arranged by the Ministry of Education as experienced educators” included under this title has been removed

from the text.

(Supplementary clause: 17/4/2008 – 5763/25 art.) Female voluntary insurance holders who are determined to be doing the

works with the same conditions after the effective date of this article, according to procedures and forms, determined by the

Institution, by receiving the comments of the Ministry of Finance, individual who do the works specified in sub clause (6),

clause one, article 9 of Income Tax Act, 193, dated 31/12/1960, before the effective date of this article under service contract

without being subject to any employer permanently and in an income earning nature; make payments of invalidity, old – age,

survivors and health insurance premiums by increasing one point for each following year, not to exceed thirty times of it, by

starting from fifteen times of the lower limit of daily income amount, basis of premium that is determined according to article

82 for the year this article has taken effect.

Provisions concerned with the termination of insurances of individuals who work on their own behalf and account

PROVISIONAL ARTICLE 17 – (Supplement: 17/4/2008 – 5754/73 art.)

In case individuals who work on their own behalf and account and individuals who work in agriculture on their own behalf and

account are registered according to acts 1479 and 2926, and individuals who have premium debts regarding the five year –

period as of the effective date of this article, fail to pay their premium debts belonging to these periods within 6 months from

the beginning of the month following the issue of a general declaration by the Institution regarding premium debt payments,

insurances of insurance holders with premium payments are terminated as of the end of the month, in which previous premiums

are exactly paid, and insurances of insurance holders who do not have any premium payment are terminated as of the registry

date. Insurance periods concerning premium debts are not evaluated and Institution claims belonging to these periods are not

followed up and they are included in Institution claims.

However, in case insurance holders or survivors pay the debt amount in full; which is to be estimated over the earning amount,

the basis for premium which is to be determined according to clause two of article 80 at the date of the application; within three

months from the announcement date of the debt, these periods are evaluated as insurance periods.

Second clause of this article is implemented for individuals whose insurances are terminated according to previous acts.

Transitional provisions concerned with certain monthly compensations and assistances

PROVISIONAL ARTICLE l8 – (Supplement: 17/4/2008 – 5754/73 art.)

Until rectifications are made in the pertaining acts;

a) Implementation of provisions of this Act before the effective date of this Act is continued regarding pensions to individuals

themselves who are to be considered as war disabled according to Act 5434 including its provisions abrogated by this Act and

their widows and orphans and individuals who do not work as being subject to long – term insurance branches at the date they

are employed by Turkish Armed Forces and individuals who are specified in sub clause one, article 56 of Act 5434, dated

8/6/1949.

b) An additional difference is paid separately to individuals specified in first clause of supplementary article 77 of Act 5434

and in clause eight of article 47 of this Act in case the total of pensions; that are to be assigned in the framework of pertaining

acts and this Act, and are increased according to supplementary article 77 of Act 5434 of their equivalents; is lower than

pensions for which they earned their right.

c) Pertaining provisions of Act 5434 are continued to be implemented including its articles abrogated by this Act regarding

individuals who are included in tables supplemented to yearly budget acts upon supplementary article 16 of Act 442, dated

18/3/1924, Act 1005, dated 24/2/1968, Act 2330, dated 3/11/1980, Act 2913, dated 11/10/1983, Act 3292, dated 28/5/1986, Act

3713, dated 12/4/1991 and regarding assignment of pensions, compensations and supplementary payment based on Act 2330

due to references made in other acts and regarding assistance procedures.

Additional expenses to be undertaken by the Institution upon clauses specified above for individuals who are included in the

scope of this article are collected by the Treasury against invoice within two months the latest from the payment date.

Health insurance premium to be deducted from individuals who receive pensions

PROVISIONAL ARTICLE 19 – (Supplement: 17/4/2008 – 5754/73 art.)

General insurance premium is deducted from individuals who receive pensions according to acts 1479 and 2926, and

individuals for whom pensions are going to be assigned upon provisional article 2 of this Act due to their working in the scope

of sub clause (b), clause one, article 4 of this Act, and individuals who are considered as having failed to pay health insurance

or universal health insurance premiums for a period of ten years from their relevant files, with the condition of decreasing

periods for which health insurance and universal health insurance premiums are deducted, as to complete 10 years and in the

ratio of 10% from their pensions.

Funds in the scope of provisional article 20 of Act 506 and pertaining provisions

PROVISIONAL ARTICLE 20 – (Supplement: 17/4/2008 – 5754/73 art.)

Participants of funds which are established for personnel of banks, insurance and reassurance companies, trade chambers,

industrial chambers, stock exchanges or unions that they form, and individuals who are granted with pensions or incomes, and

their survivors are included in the scope of this Act without any need for any procedure by transferring them to the Social

Security Institution within three years from the issue date of this article. The period of three years may be extended by two

years the longest by the Cabinet decision. Fund participants are considered as insured in the scope of sub clause (a) of article 4

of this Act as of the turnover date.

Cash value of the liability is estimated by taken into account income and expenses of insurance branches of the funds in the

scope of this Act, including participants for each fund who left the fund, regarding turned over individuals as of the turnover

date, by a commission to be formed with a member as a representative from each funds of Social Security Institution, Ministry

of Finance, Treasury Under – secretariat, Under – secretariat of State Planning Organization, Banking Arrangement and

Inspection Organization, Saving Insurance Fund and a member to represent institutions employing fund participants. Technical

interest rate to be used in cash value estimations is taken as 9.8 percent.

Determined cash value is collected, not to exceed fifteen years, in equal annual instalments, for each year separately, in New

Turkish Lira to be explained by the Treasury Under – secretariat, over the annual average nominal interest of exported,

discounted State internal indebt bonds, and from institutions employing participants of these funds, according to provisions of

this Act by the Institution successively.

Until the turnover process is completed, health and social insurance assistance provision and premium collection from fund

participants, individuals who receive pensions and incomes and their survivors is continued according to pertaining legislation

provisions by the funds and institutions employing fund participants.

If pensions and incomes paid after the completion of turnover process are above the pensions and incomes that are to be

estimated by the implementation of provisions of Act 506 for the periods before the effective date of this Act, and for the

periods after the effective date of this Act, by the implementation of provisions of this Act; the said differences are taken into

account in cash value estimation and is continued to be paid to the concerned individuals by the Social Security Institution.

Estimations to be made according to trust bills during processes of increase, decrease, discontinuation and reassignment due to

state changes in income and pensions of these persons after the turnover date are carried out under the control of the Institution

by the organizations which employ relevant funds or fund participants.

Pensions of participants, who become participants at funds as of the turnover date, and individuals who leave the funds, cannot

receive pensions or incomes and earn rights against the funds, are estimated according to provisions of provisional article 2 of

this Act. In the implementation of sub clause (a), clause one, provisional article 2, estimations are made under the control of the

Institution by organizations which employ funds, related by the Institution and according to trust bills, and fund participants,

upon provisions of Act 506, for the term before the effective date of this Act. In case there are differences between pensions to

be estimated in the scope of provisional article 2 and pensions that are to be estimated according fund provisions by

considering periods that elapsed in the fund, the said differences are taken into account in cash value estimations and continued

to be paid to the concerned parties by the Social Security Institution. Estimations to be made according to trust bills during

processes of increase, decrease, discontinuation and reassignment due to state changes in income and pensions of these persons

are made by the institutions employing relevant funds or fund participants under the control of the Institution.

Other social rights and payments of fund participants and individuals who have pension and/or income and their survivors,

which are not met even though they are in the bill of trust which these persons are subject to, are made after their turnover to

the Social Security Institution, by the funds and by the institutions which employ the fund participants.

Forms and procedures regarding the implementation of this article, and payment of cash value concerning the differences

specified in clause five and six of this article, within the first instalment, in a single payment or in instalments is determined by

the Cabinet by referring to comments of Social Security Institution, Ministry of Finance, Treasury Under – secretariat, Under –

secretariat of State Planning Organization, Banking Arrangement and Inspection Institution, Savings Security Fund, institutions

employing fund participants. Parties submit their comments and suggestions in writing until the date that is to be determined by

the Social Security Institution.

Turkish Union of Chambers and Commodity Exchanges, established upon Turkish Union of Chambers and Commodity

Exchanges Act, numbered 5174, dated 18/5/2004, represent organizations which employ personnel of Turkish Union of

Chambers and Commodity Exchanges and participants of Security and Retirement Fund Trust participants in the processes and

procedures regarding the implementation of this article.

Institutions which employ the said funds and fund participants and the Institution are exempt of any type of tax, duty and

charge that is to arise due to all processes pertaining the implementation of this article.

In case there are provisions contradictory to this Act in trust bills regarding other provisions, excluding short term insurance

branches and universal health insurance provisions of this Act, provisions of this Act are implemented as of the effective date

of this Act.

Increases to be made in incomes or pensions that are assigned/to be assigned by the funds from 30/4/2008 shall not exceed

increases that are made in income or pensions assigned according to Act 506.

Forms and procedures, which are to be determined regarding the turnover in the framework of this article and differences in

pensions and incomes that are to be paid by the Social Security Institution according to clause five and six of this article, may

not be implemented for funds which are turned over or continuing to be turned over before the issue of this article according to

supplementary article 36 of Act 506.

Provisions of article 58 of Banking Act, 5411 may not be implemented for turnover and other processes to be made in the scope

of this article.

Transitional provisions of Act 2108

PROVISIONAL ARTICLE 21 – (Supplement: 17/4/2008 – 5754/73 art.)

Among village administrative officers whose registrations and records are made according to Act 1479 as of the date they are

elected as officers according to article 4 of Act 2108 before the effective date of this Act, officers who wish to continue their

insurances according to provisions of sub – sub clause (1), clause (b), article 4 of this Act and who apply in writing within six

months from the effective date of this article, their insurances are continued exactly the same. Provisions of this Act are

implemented for individuals who do not make any requests within this period.

Transitional provisions regarding founding partners of joint stock companies

PROVISIONAL ARTICLE 22 – (Supplement: 17/4/2008 – 5754/73 art.)

If founding partners of joint stock companies specified in sub – sub clause (3), sub clause (b), clause one, article 4 of this Act

and who are insured as being subject to article 24 of Act 1479 and who wish to continue their insurances apply in writing

within six months from the effective date of this article, their insurances are continued exactly the same. Insurances of

individuals who do not apply within this period are terminated as of the effective date of this Act.

Provisions regarding individuals whose social security premium structuring is deformed

PROVISIONAL ARTICLE 23 – (Supplement: 15/5/2008 – 5763/26 art.)

(1) Even though individuals who restructured their debts, which are in the scope of article 1 and 2 of the Act, according to

article 1 and 2 of Act on Restructuring of Social Security Premium Credits and Making Amendments in Certain Acts,

numbered 5458, dated 22/2/2006, and who have lost their restructuring rights upon article 3 of the same Act until the end of the

month following the effective date of this article, if they apply to the Institution in writing within two months after the effective

date of this article, their deformed restructuring agreement are regenerated by considering the date of the application, which is

made according to Act 5458, and instalment period.

(2) Payments of debtors, whose restructuring agreements are regenerated, made for their debts included in the scope of Act

5458, are deducted according to their instalment amounts in the same debt type for those who are in the scope of article 1 of the

said Act, and according to article 10 of the said Act for those who are in the scope of article 2.

(3) In case instalment amounts, which are not paid on their due date or paid incompletely before the date of the application

made according to this article as a result of regeneration or deduction processes, are paid until the payment date, along with the

amount of the interest which is to be estimated as a result of the application of the interest ratio on a compound basis which is

to be figured by adding 1 point to the monthly average of interest ratio of exported, discounted State internal debt bills in New

Turkish Liras (YTL) belonging to the previous month that is to be explained by the Treasury Under – secretariat for each month

delayed, separately until the payment date, they are benefited from restructuring provisions of Act 5458. In case, payment

liabilities specified in this clause are not exercised fully within the said six month – period, restructuring right is lost and

restructuring processes are cancelled and paid amounts are deducted according to pertaining provisions of the social security

legislation.

(4) In terms of instalments that are going to be due from the date of the application made according to this article, provisions of article 3 of Act 5458 are implemented for debtors who are benefited from the provisions of this article. In terms of debtors who are in the scope of article 1 of this Act, provisions of article 3 of Act 5458 are implemented from the end of the third month following the date of the application made according to this article, and in terms of debtors who are in the scope of article 2, they are implemented by looking backwards from the end of the six – month period specified in clause three of this article.

(5) Individuals whose debts, in the scope of article 1 and 2 of Act 5458, are restructured and who have lost their restructuring right upon article 3 of the same Act, and who have paid these debts that are in the scope, in full according to relevant provisions of the social security legislation, provisions of this article are not implemented. Individuals who have paid their debts partially and applied to benefit from this article are not reimbursed with the amounts that they paid previously and deduction process is not carried out with the condition of no prejudice against the first and second clauses of this article.

(6) Confiscations and collected cautionary from absolute property and real property due to debts included in the scope of Act 5458 before the effective date of this article are removed in proportion to payments that are made after the payment of overdue installations, and confiscations regarding rights and claims in front of third persons are removed after the payment of overdue instalments in full.

(7) In case, insurance holders or their rightful beneficiaries in the scope of Acts 1479 and 2926 pay their premium debts belonging to the period after 1/4/2006 with their overdue instalments and they fulfil payment liabilities regarding instalment and current month premiums after the effective date of this article, they start to benefit from health insurance.

(8) It is mandatory for debtors who apply to benefit from provisions specified in this article, to relinquish appeals to the Social Security Institution and law suits by court due to their debts that are included in the scope, and not to generate dispute.

(9) The Social Security Institution is authorized to determine forms and procedures regarding the implementation of this article.

Social security receivables

PROVISIONAL ARTICLE 24 – (Supplement: 15/5/2008 – 5763/27 art.)

(1) Excluding the debts that are decided by the Accord Commission and approved by the Cabinet and published in the Official Gazette, followed up according to the Social Security Act, numbered 506, dated 17/7/1964 and upon provisional article 3 of the Metropolitan Municipality Act, numbered 5216, dated 10/7/2004 and provisional article 7 of abrogated Municipality Act, numbered 5272, dated 7/12/2004 and provisional article 5 of the Municipality Act, numbered 5393, dated 3/7/2005, insurance premium, unemployment insurance premium, administrative monetary penalty, social aid increase that are not collected until the date of the application made according to this article and belonging to 2008/March and the previous terms, and with the condition of application until the end of the month following the effective date of this Act, debts of individuals, who are figured that they did not declare sufficient workmanship report as a result of pre evaluation, investigation or determination about private building construction and works of tender matter that are completed until 31/3/2008, premium debts of voluntary insurance holders between 2003/May and 2008/March periods, premium debts of individuals who are subject to group insurance regarding invalidity, old – age and survivors insurances belonging to 2003/March and the previous terms, premium and social security support premium debts of insurance holders until 31/3/2008 according to Artisan and Craftsman and Other Independent Workers Social Security Institution Act, dated 2/9/1971, numbered 1479 and Act on Social Security of People Working in Agriculture on their Own Behalf and Account, dated 17/10/1983, numbered 2926, with the condition of a written application within two months following the effective date of this article, are paid in equal instalments with the conditions specified in this article or until twenty four months.

(2) In case, advance payment means is preferred and payment is made for the principal amount of the debt and late charges estimated according to social security legislation provisions until the end of the month in which the application is made and payment is made for fifteen percent of the late charge within one month following the application date, late charge and remaining eighty percent of late charge is pledged.

(3) If payment in installations is preferred, fifty five percent of late charges and late fees are pledged, which are estimated according to social security legislation provisions, in installation up to twelve months until the end of the month the application is made for debt principal which is included in the scope of the first clause, and thirty percent is pledged in instalments exceeding twelve months and the remaining part is added to debt principal and the debt is estimated, which is the basis of the principal amount. This amount is divided into instalment period and the monthly instalment amount is figured. Liability for the payment of the first instalment starts within the month following the application made according to this article. When payment with instalment means is selected at the beginning and then the remaining of the debt is desired to be paid in full, the pledge ratio which is dependent on the instalment period chosen at the beginning is not changed.

(4) If debtors do not fulfil their liabilities regarding their instalments on the basis of their debt type more than three times within a calendar year or if they fulfil them incompletely or if they pay the amounts unpaid within a calendar year up to three times or incompletely paid instalment amounts until the end of the month following the latest instalment, along with the interest amount to be estimated as a result of application of the ratio in compound base, by adding 1 point to monthly average interest ratio of discounted, exported State internal debt bills in New Turkish Lira (YTL) belonging to the previous month that is to be explained by the Treasury Under – secretariat for each delayed month until the end of the month following the latest instalment, these debtors lose their instalment rights according to this article and they return to their state before the instalment and paid amounts are deducted according to the pertaining provisions of the social security legislation.

(5) Late charges and late fees collected before the effective date of this Act is not reimbursed and not deducted, except for the amounts taken wrongly or baseless.

(6) Confiscations and collected cautionary on real and absolute property due to debts, in the scope of this article, before the effective date of this Act are removed in full in the ratio of the made payments, and confiscations regarding rights and receivables by third persons are removed in full after the payment of the first instalment.

(7) When a written application is made within the application period of advance payment or instalment according to this article for debts that are included in the scope of the first clause, by deforming delay and instalment or restructuring processes, which were delayed and installed or restructured by debtors upon the pertaining Acts concerning debts that are in the scope of this article, amounts which are restructured previously and their delay and instalment or restructuring processes are deformed and the paid amounts are deducted according to relevant social security legislation and their remaining debts in the scope of the first clause are paid in advance according to this article or installed.

(8) Provisions of this article are implemented for debts included in the scope of this article however excluded in the scope of Act 5458 and belonging to debtors whose restructuring agreements are continuing according to Act on Restructuring of Social Security Premium Credits and Making Amendments in Certain Acts, numbered 5458, dated 22/2/2006, or that they are regenerated.

(9) If metropolitan municipalities, municipalities and institutions of these municipalities request instalment of their debts, included in the scope of the first clause, deduction amounts made according to relevant acts for debts that are included in the scope of provisional article 5 of the Metropolitan Municipality Act, dated 10/7/2004, numbered 5216 and provisional article 6 of the Municipality Act, dated 3/7/2005, numbered 5393, are deducted from the instalment amounts that are to be paid according to this article. When deduction amounts are not deducted from monthly instalment amounts, entirety of the monthly instalment amounts is paid by debtors and when deduction amounts do not cover monthly instalment amounts, balance instalment amounts are paid by debtors.

(10) When insurance holders or their rightful beneficiaries in the scope of acts 1479 and 2926 do not have debts other than the ones included in the scope of this article, or when they have debts other than the ones included in the scope of this article and have restructured these debts according to special acts and fulfil their payment liabilities, and with the condition of payment of first four instalments of their total debts estimated according to the first clause, they start to benefit from health insurance.

(11) It is mandatory that debtors who apply to benefit from provisions specified in this article, they have to relinquish appeals that they made by the Social Security Institution due to their debts included in the scope and relinquish law suits that they filed at court and not generate any disputes.

(12) The Social Security Institution is authorized in determination of forms and procedures in the implementation of this article.

PROVISIONAL ARTICLE 25 – (Supplement: 31/7/2008 – 5797/4 art.)

If employers and insurance holders, whose debts, included in the scope of provisional article 24 of Act 5510, are structured upon provisions of the said article provisions, apply in writing within twenty days from the effective date of this article, their debts included in the scope of the said article are paid in full with the conditions specified in this article or paid in instalments up to twelve months.

If advance payment means is selected and the entirety of the debt principal and twenty percent of late charges and late fees, estimated upon the relevant legislation provisions, are paid until the end of the month during which the application is made, eighty percent of the remaining late charge and late fee is cancelled.

If payment with instalment means is preferred, and the entirety of the debt principal and fifty percent of late charges and late fees, estimated upon the relevant legislation provisions, are paid in equal instalments up to 12 months, fifty percent of the remaining late charge and late fee is cancelled. Payment liability of the first instalment starts in the month following the month in which the application is made. If instalment means is selected at the beginning and then the rest of the remaining installed debt is requested to be paid in full, cancellation ratio depending on the selected installation period is not changed.

Fourth, fifth, sixth, seventh, eighth, ninth, tenth and eleventh clauses of provisional article 24 are implemented for applicants who applied to benefit from this article.

The Social Security Institution is authorized in determination of forms and procedures in the implementation of this article.

Enforcement

ARTICLE 108 – (Amendment: 17/4/2008 – 5754/74 art.)

Of this Act;

a) Last clause of provisional article 20, takes effect on 1/1/2008,

b) article 72 and 73, sub clause (b) of clause 7 of provisional article 6, last clause of provisional article 7, clause one to four of provisional article 9 and provisional article 17, twelfth clause of provisional article 20 take effect on 30/4/2008,

c) Pertaining implementation of universal health insurance provisions for individuals who are considered in sub – sub clauses (3) to (8) and (10) of sub clause (c) of clause one of article 60 and sub clause (f); sub clauses (1), (2), (8), (9), (10), (16), (17), (20), (22), (23), (24), (25), (26) and (27) of clause one, article 3, articles 63, 64, 66, 67, 68, 69, 70, 71, 72, 74, 75, 77, 78, 79, fourth clause of article 80, sub clause (f) of clause one of article 81 and clause two, clause one, two and three of article 82, articles 87 to 89, last clause of article 97, last clause of provisional article 1, provisional article 3, fourth clause of provisional article 6, second clause of provisional article 11, provisions of provisional article 12 take effect on 1/7/2008,

d) Its other provisions take effect at the beginning of October, 2008.

Enforcement

ARTICLE 109 – The Cabinet enforces provisions of this Act.

LIST OF EFFECTIVENESS DATE OF LEGISLATION, MAKING AMENDMENTS AND SUPPLEMENTS TO ACT 5510

No. Amended articles of Act 5510

Effectiveness dates of legislation

5655                         69 and 108

20/05/2007

5754 

a) Last clause of provisional article 20 on 01/01/2008,

 b) articles 72 and 73, sub clause (b) of clause seven of provisional article 6,

           last clause of provisional article 7, clause one to four of provisional article 9,

           and provisional article 17, clause twelve of provisional article 20 take effect on                30/04/2008,

       c) Regarding the implementation of universal health insurance provisions for

          individuals specified in sub – sub clauses (3) to (8) and (10) of sub clause (c) of

          clause one of article 60 and sub clause (f); sub clauses (1), (2), (8), (9), (10), (16),

          (17), (20), (22), (23), (24), (25), (26) and (27) of clause one of article 3, articles 63,

                                                                                                                                    93

        64, 66, 67, 68, 69, 70, 71, 72, 74, 75, 77, 78, 79, clause four of article 80, sub clause

       (f) of clause one and clause two of article 81, clause one, two and three of article 82,

        articles 87 to 89, last clause of article 97, last clause of provisional article 1, provisional

        article 3, clause four of provisional article 6, clause two of provisional article 11,

        provisions of provisional article 12 take effect on                                             01/07/2008,

    d) Other provisions take effect                                                                     01/10/2008.

                      5763                      Provisional articles 23 and 24

26/05/2008

    81 and provisional article 16                                                                       01/10/2008

                      5797                      Provisional article 4, 12 and 25

19/08/2008

    81                                                                                                  01/10/2008

    80                                                                                                  15/10/2008