Enacted in the Official Gazette on May 18, 2018, Law No. 7143 on Restructuring covers unpaid social security debts (SGK) accrued through March 2018 and earlier. This restructuring applies to debts that existed before the law’s publication date and provides specific relief and payment options for a range of SGK liabilities.
Which Contribution Debts Are Covered?
The restructuring under the law addresses various SGK receivables. In summary, it covers:
- Contributions arising under insurance branches 4/a, 4/b and 4/c, including employer portions, retirement deductions and unemployment insurance contributions, as well as social security support contributions accumulated during the insured period;
- Voluntary insurance premiums and group insurance premiums that are voluntarily paid and still eligible for payment if an application is submitted;
- Stamp taxes, special transaction taxes and educational contributions that SGK pursues within its authority.
If these receivables were past due, amounts are recalculated up to the law’s publication date using monthly Yİ-ÜFE (domestic producer price index) differences. When taxpayers follow the specified payment plan and make scheduled payments, penalties and late-interest charges arising from delayed SGK receivables are waived. The restructuring also permits installment plans for social security support contributions paid between 2003 and 2016 for those previously covered by BAĞ-KUR, SSK, Bank Pension Fund or Public Servants’ Pension Fund.
Adjustment for Employers with Minimum Staff
Under the new law, debts existing as of March 31, 2018 that were calculated as SGK contributions and related late charges — particularly those tied to construction projects or public tenders — are recalculated using monthly Yİ-ÜFE rates. If these recalculated amounts are paid within the restructuring schedule and deadlines, no additional late-interest or punitive collection will be enforced and the recalculated amounts will be considered settled.
50% Amnesty on Administrative Fines
As of May 18, 2018, administrative fines that were finalized and unpaid prior to March 31, 2018 become eligible for restructuring. The recalculation uses monthly Yİ-ÜFE changes for the period from the original due date to the law’s effective date. When debtors follow the structured payment plan, half of the administrative fine is forgiven and no additional collection is made for the waived portion or related late penalties.
Debts with Principal Already Paid
Where principal amounts were paid prior to the law but ancillary charges (fer’î) remain unpaid, the restructuring allows those remaining ancillary debts to be resolved by paying 40% of their outstanding amount; the remaining 60% is cancelled in accordance with the restructuring provisions.
Health Coverage for BAĞ-KUR Contributors
For BAĞ-KUR contributors (including tradespeople, agricultural contributors and drivers), the law provides that if outstanding debts are restructured and there are no other premium debts older than 60 days beyond the restructured debt, and regular installment payments are maintained, eligibility for general health insurance (GSS) will be granted.
GSS (General Health Insurance) Restructuring
Individuals registered for general health insurance who have not completed an income test may apply for the income test between May 18, 2018 and November 30, 2018. GSS premiums will be assessed from the GSS registration date based on the income test result. Unpaid GSS premiums accruing through April 2018 and recognized up to May 18, 2018, if paid by December 31, 2018, will have their delay penalties and interest canceled. Under Article 67, those with pre-existing GSS debts who meet health-assistance criteria may receive health benefits without considering prior premium arrears; however, payments made toward GSS premiums before May 18, 2018 are not refundable. Individuals receiving health assistance will not be paid any personal amounts related to penalty or interest cancellations.
BAĞ-KUR Revival (İhya)
Tradespeople and agricultural contributors whose BAĞ-KUR registrations were valid but whose coverage was suspended due to unpaid premiums can apply to reactivate their insurance by August 1, 2018. Applicants may request that debt recalculation use Yİ-ÜFE indexes when determining amounts owed. Once the total debt is calculated and the first installment is paid, the suspended insurance period will be restored. If the first installment is not paid in its term, the revival is invalidated.
Incorrect Payments Not Included
Erroneous payments made to beneficiaries or insured persons due to SGK error, or payments resulting from false declarations by beneficiaries or insured persons, are not altered by the restructuring. Such improper payments remain subject to existing collection rules and are not included in the restructuring relief.
Holiday Bonus Payments
Retirees who become eligible for a pension before religious holidays, and current pensioners, received a one-time holiday bonus of 1,000 TL before the holiday. If a beneficiary receives multiple pensions, the bonus is paid only once. When beneficiaries receive a combined pension amount, the 1,000 TL bonus is divided equally among their entitlements.
Overall, Law No. 7143 provided broad relief and installment options for many SGK-related debts existing before its effective date, conditional on following application procedures and adhering to approved payment plans. Taxpayers and contributors seeking to benefit from these measures must comply with application deadlines and payment schedules specified in the restructuring regulations.