Implementation of the Social Security Institution’s 5-point Premium Incentive

 

“5-Point Discount on Employer’s Share on Disability, Old Age and Death Social Insurance Premiums” is one of the social insurance premium incentives applied by the Social Security Institution.

5-points of the employer’s share in invalidity, old-age and survivors’ insurance, which is calculated over the premium earnings of the insured and payable by the private sector employers, is covered as a discount within this incentive. The five-point premium reduction has been applied since 01.10.2008 and as this is a continuous incentive all the private sector employees can benefit from this opportunity regardless of scale of the workplace of the economic sector in which it is operating.

Benefit conditions:

In order for employers to benefit from this incentive, employers must fulfill the following conditions:

• The workplace is not one of the institutions and organizations that fall within the scope of the second paragraph of Article 30 of the Law No. 5335. In other words, this incentive is specifically implemented for private sector employers.
• The work done should not be one of the procurement and construction works within the scope of the Law No. 2886, Law No. 4734 and Article 3 of the Law No. 4734 or pursuant to international agreements.
• Submitting the monthly premium and service documents or concise and premium service declarations to the Social Security Institution within the legal period as envisaged by the Social Insurance and General Health Insurance Code No. 5510.
• Payment of accrued premiums within the legal period (till the end of the relevant month).
• The workplace does not have any overdue premiums, unemployment insurance premiums, administrative fines and related delay penalties and late payment debts to the Social Security Institution, although these debts are structured or paid in installments.
• Structured or installment debts to the Social Security Institution are paid on time and on a regular basis.
• Not employing unregistered insured or not reporting fictitious employment to the Social Security Institution.