With changing times and advancing technology, the needs of people — including workers — have begun to vary in the workplace and daily life. Over time, the government in our country has introduced conveniences in many areas. As in other countries, there are specific rules and actions required for insurance coverage here as well. In addition to these requirements, there are certain debts that individuals can calculate themselves. One such obligation is the Bağ-Kur reinstatement debt, commonly referred to as “Bağ-Kur İhya Borcu” or Bağ-Kur reinstatement debt calculation.
Those who do not have the opportunity to work in the private or public sectors are covered under Bağ-Kur insurance in Turkey. This allows individuals who do not work for private employers or the state to still make contributions and qualify for retirement.
Recently enacted omnibus legislation introduced a Bağ-Kur amnesty that brought relief to many Bağ-Kur contributors with outstanding debts. Thanks to this amnesty, contributors with arrears can restructure those debts based on their incomes and gain easier payment options. Of course, certain conditions apply to benefit from the amnesty. Those with contribution debts of 12 months or more are eligible. In addition, tradespeople and artisans, as well as agricultural and farming Bağ-Kur contributors, have the right to take advantage of the amnesty. To apply, the insured person can visit their local Social Security Center with a photocopy of their ID and the completed application form.
People enrolled in compulsory Bağ-Kur or agricultural Bağ-Kur who had 12 months or more in arrears as of April 30, 2015, have the right to have those debts forgiven. Those who previously owed Bağ-Kur contributions can restructure their debts under Law No. 6552. If, after restructuring, a person wishes to cancel that arrangement, they may cancel the restructuring and have their debts cleared. If needed or requested, erased Bağ-Kur service periods can be reinstated later, and the Bağ-Kur reinstatement debt calculation will be carried out as part of that process.
For Bağ-Kur reinstatement debts, the amount to be paid for reinstatement is calculated based on Bağ-Kur contribution rates that were in effect on the requested date. The calculation method for reinstatement debts differs between agricultural Bağ-Kur contributors and other Bağ-Kur contributors.
Bağ-Kur Reinstatement Debt Calculation for Agricultural (Tarım) Bağ-Kur Contributors
Reinstatement Amount = Number of Stopped Days × Declared Earnings Subject to Contribution × 34.5% × 23 / 30
As is known, agricultural Bağ-Kur contributors pay contributions for 23 days of the gross minimum wage for 2016. In subsequent years, one day is added to that 23-day base each year, reaching 30 days by 2023. For agricultural Bağ-Kur contributors, the day basis is accepted as 23 days in current calculations.
Bağ-Kur Reinstatement Debt Calculation for Other Bağ-Kur Contributors
For other Bağ-Kur contributors, the reinstatement debt calculation does not include the 23/30 ratio used for agricultural contributors; the calculation proceeds with three factors instead.
Reinstatement Amount = Number of Stopped Days × Declared Earnings Subject to Contribution × 34.5%
An example helps to clarify the calculation process.
For example, suppose Veli Bey had an agricultural Bağ-Kur contribution debt as of April 30, 2015. Assume Veli Bey’s Bağ-Kur coverage was deemed stopped on April 30, 2010, for various reasons. Veli Bey submitted a written request to the Social Security Institution (SGK) on March 9, 2016, asking for the reinstatement of the stopped insurance period and to initiate the process. Based on these dates, we calculate Veli Bey’s Bağ-Kur reinstatement debt as follows:
We write the formula used for the reinstatement calculation.
Reinstatement Amount = Number of Stopped Days × Declared Earnings Subject to Contribution × 34.5% × 23 / 30
Reinstatement Amount = 1,800 × 54.90 × 34.5% × 23 / 30
As a result of the calculation, the reinstatement amount is determined to be 26,137.89 TL.