Retirement Due to Disability
People with a certain degree of disability can be eligible for earlier retirement compared with those fully fit for work. This is explicitly addressed in various provisions of the Labor Law and the Social Insurance Law. However, in practice there are difficulties caused by implementation problems and regulatory shortcomings. While solutions are being explored and some regulations updated, many people with qualifying disabilities lose the opportunity to retire early because the rules are not consistently applied.
Legal Framework for Retirement Due to Disability or Incapacity
a. Disability (Maluliyet) Retirement
Under social insurance law, individuals who have lost two-thirds of their working capacity are entitled to disability retirement. According to Article 34, if institutional physicians determine after treatment that the person is not fit for work, a decision for disability retirement is made. Workers who cannot continue working because of work accidents or similar causes and who have lost around 60% of their earning capacity may also qualify for disability retirement. New workers who become disabled after starting insured employment must meet specific conditions to fall under disability insurance coverage. Additional eligibility requirements for receiving a disability pension include the following:
- According to Article 53 of the Social Insurance Law, persons who have lost 60% of their earning capacity,
- Having accumulated 1,800 days of insured employment since first becoming insured, or alternatively having been insured for five years and having paid at least 180 days of premiums for death, old-age or disability.
b. Retirement Due to Disability
Article 60 of the Social Insurance Law sets the conditions for receiving an old-age pension as of September 8, 1999. These conditions are listed below:
- For those who were first insured and entered the workforce after that date, women must be 58 and men 60 to receive an old-age pension, and they must have completed at least 7,000 insured days.
- Alternatively, women aged 58 and men aged 60 who have worked as insured employees for 25 years and completed at least 4,500 days.
- These individuals must have paid the required death, disability or old-age insurance premiums.
Separate from the age-based requirements, persons who qualify for retirement because of disability are entitled to a pension regardless of age provided they have at least 15 years of insured service or at least 3,600 days of paid death, old-age or disability insurance contributions. Civil servants covered by the pension fund may also benefit from these disability-related retirement provisions. As shown, the ability to retire due to disability is linked to eligibility for tax allowances; if the conditions under the social insurance law are met, employees can retire within 15 years irrespective of gender.
Eligibility for disability-related tax reductions is governed by Article 31 of the Income Tax Law. Under that law, a person who has lost at least 80% of their working capacity is considered first-degree disabled, someone who has lost 60% is second-degree disabled, and someone who has lost 40% is third-degree disabled. The tax reductions are applied as follows:
- First-degree disabled persons receive an 8-times allowance,
- Second-degree disabled persons receive a 4-times allowance,
- Third-degree disabled persons receive a 2-times allowance.
The regulations that govern medical reports issued by healthcare institutions for disabled persons are drafted according to these degrees. Under the regulation, a claimant applies for the disability allowance and is referred by authorized health institutions as described in Article 5. The referred institution prepares a written report that includes laboratory results, disability details, clinical examination findings and a clear diagnosis. Article 10 of the regulation outlines how physicians determine the degree of disability. Based on the finalized medical reports, the administrative decision about whether the individual qualifies for disability retirement is made.
In practice, the key determinant for early retirement due to disability remains whether the person qualifies for the disability allowance under the Income Tax Law. The social security system needs ongoing review to ensure clarity and fairness in applying tax allowances and early retirement conditions for disabled persons.
Retirement Conditions for Bağ-Kur Insured Persons
- Those with 60% or greater disability may retire after 15 years and 3,960 days of contributions.
- Those with 50% to 59% disability may retire after 16 years and 4,320 days of contributions.
- Those with 40% to 49% disability may retire after 18 years and 4,680 days of contributions.
Previously, Bağ-Kur members had no formal disability retirement provision, but recent regulations have introduced early retirement rights for disabled contributors.
Individuals with congenital disabilities and at least 40% disability who obtain medical reports from authorized health institutions can also qualify for retirement after a minimum of 5,400 days of contributions.