Law no. 6740, which was published in the Official Gazette on 25 August 2016, has amended Private Pension Savings and Investment System Law no. 4632 within the scope of two new articles, namely Annex 2, which is titled as "The Automatic Inclusion of the Employees Within A Pension Plan"; and a Provisional Clause, which sets forth the automatic inclusion of the employees, who have not yet turned forty-five years old as of the date 1 January 2017, into a pension plan in compliance with the Annex 2.

The Regulation on the Procedures and Principles Regarding the Automatic Inclusion of the Employees By Their Employers, which was published in the Official Gazette on 2 January 2017, entered into effect as of 1 January 2017.

Within the scope of the Regulation, which sets out separate provisions for the employees in public and private sectors, individual participation dates based upon the number of the employees of an employer were designated for the employees working within the scope of private sector. Accordingly, the below-mentioned employees shall be deemed to have automatically participated into a pension plan as of the below-mentioned dates:

  • 1 January 2017 for the employees of an employer who employs one thousand and more employees;
  • 1 April 2017 for the employees of an employer who employs two hundred and fifty and more employees, however less than one thousand employees;
  • 1 July 2017 for the employees of an employer who employs one hundred and more employees, however less than two hundred and fifty employees;
  • 1 January 2018 for the employees of an employer who employs fifty and more employees, however less than one hundred employees;
  • 1 July 2018 for the employees of an employer who employs ten and more employees, however less than fifty employees;
  • 1 January 2019 for the employees of an employer who employs five and more employees, however less than ten employees.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.