What is the SSK/SGK Indicator Table? How Is It Calculated? Formerly known as SSK and now called SGK, both SGK and Bağ-Kur pension calculation methods are widely researched by pension applicants who want to know how retirement pay is calculated and how much they will receive. All citizens who are retired or will retire under SGK or Bağ-Kur are eager to learn the expected pension amount and the calculation method. Those who have worked for many years and are nearing the end of their working life are particularly interested in these details.
The Social Security Institution grants retirement rights so that individuals who have contributed to the workforce for years across the country can continue to benefit from social security. Among the most searched topics by those eligible for retirement or counting days to pension are how the pension is calculated and what monthly amount they will receive.
How Is 4/A (SSK/SGK) Retirement Pay Calculated?
Due to recent regulations, 4/A pension calculations now follow three distinct methods based on the worker’s insurance-entry period. Pension amounts are calculated according to these time periods. The periods used to determine the 4/A pension are outlined below.
4/A (SSK/SGK) Pension Calculation for 2000 and Earlier
For individuals who began working under 4/A before 2000, pension calculations used an indicator number and the monthly accrual rate. The calculation applied a relatively complex formula. For example, a person retiring in 2018 would have their pension calculated using values from 2017. The basic steps to determine the indicator value and calculate the pension were:
- Calculate the person’s annual earnings to determine the indicator number.
- The last ten years of earnings are taken into account for the calculation.
- The sum of the last ten years’ earnings is divided by 10 to find the annual average earnings.
- The resulting figure is compared with the indicator table and the closest matching value is chosen as the indicator number.
- The coefficient (katsayı) is taken as 12,000.
- The monthly accrual rate is accepted as 60% for these calculations.
- The pension formula for pre-2000 entrants: 4A Pension = Indicator Number * Monthly Accrual Rate * Coefficient
4/A (SSK/SGK) Pension Calculation for 2000–2008
For those whose 4/A insurance entry was between 2000 and 2008, a different formula is used. The indicator-based method applied before 2000 does not apply to this group. Instead, a revaluation coefficient (güncelleme katsayısı) is used when calculating pension amounts for people who started their insurance between 2000 and 2008.
- When calculating the revaluation coefficient, the growth rate and CPI (TÜFE) figures from the year prior to retirement are used. All earnings from 2000 through 2008 are updated and averaged.
- The monthly accrual rate is applied in stages: for the first 10 years a rate equivalent to 3.5% is used, for the subsequent 5,000 days a 2% rate is applied, and for the following 9,000 days a 1.5% rate is used.
- The pension formula for 2000–2008 entrants: 4A Pension = Revaluation Coefficient * Monthly Accrual Rate
4/A (SSK/SGK) Pension Calculation for 2008 and Later
For those whose insurance entry began in 2008 or later, pension calculations follow different rules. In this period the pension is computed by multiplying the average monthly earnings by the monthly accrual rate. The methods used for 2008 and later entrants include:
- The average monthly earnings are determined using a revaluation coefficient, which is calculated from the prior year’s growth rate and CPI with a weighting (typically 30% of the CPI and growth contributions as applied by the rules governing the coefficient).
- The monthly accrual rate is set at 40% as a base.
- For insured persons with more than 7,200 contribution days, the accrual rate increases by 2 percentage points for each full additional year of contributions beyond that threshold.
How Is 4/B (Bağ-Kur) Pension Calculated?
4/B Bağ-Kur pension calculations also vary by entry period, similar to 4/A, and are grouped into three main methods depending on the dates of contributions. The approaches used in 4/B calculations are summarized below.
4/B Bağ-Kur Pension for Before 2000
For Bağ-Kur starters before 2000, if a full year of contributions was paid at the last bracket, the pension is set at 70% of the paid premium for that step. If the final bracket was not fully paid, the calculation is made based on the previous bracket.
4/B Bağ-Kur Pension for 2000–2008
For Bağ-Kur entry between 2000 and 2008, the pension is calculated using a weighted average and the monthly accrual rate. The basic formula is:
- 4B Pension: Weighted Average * Monthly Accrual Rate
- Weighted Average: Calculated from the total number of contribution days and their distribution over the period in question
4/B Bağ-Kur Pension for 2008 and After
For Bağ-Kur entries from 2008 onward, the pension calculation follows a similar weighted-average approach but relies on updated economic indices:
- 4B Pension: Weighted Average * Monthly Accrual Rate
- Weighted Average: Derived from the average of growth rate and CPI figures applied to contribution periods
- Period Weighting: Determined by the ratio of total contribution days after 2008 to the overall total contribution days