With the new employment package approved by the Turkish Grand National Assembly’s Plan and Budget Committee, a new group of affected people has come into focus after those blocked by retirement age: now the spotlight is on those blocked by days of contributions, often referred to as “stuck on days” in retirement. This newly used term, abbreviated EGT in some discussions, refers to people who have reached the required age and service period but have not accumulated the necessary paid contribution days.
What Does “Stuck on Days” in Retirement Mean?
For many years, people who completed their contribution and service time but could not meet the retirement age requirement have been described as those “stuck on age,” and their numbers have grown steadily. Since 1999, Turkey has increasingly discussed issues around retirement eligibility. Under the EYT framework, women who have 20 years and men who have 25 years of insured service and whose paid contributions reach up to certain thresholds could, in earlier arrangements, qualify for retirement. However, progressive increases in age thresholds over subsequent years have left many unable to retire. In other words, because they wait for the retirement age and to avoid reductions in their contribution amounts, they often cannot take other jobs and thus endure a difficult period.
A recently passed omnibus bill in Parliament signals the emergence of a new form of hardship similar to the age-stuck group. Known as the flexible work practice, its stated aim is to reduce unemployment or, more precisely, to lower the unemployment rate in statistical reports. Under this system, those who shift from full-time to part-time work are offered incentives to work fewer hours, including tax exemptions. Yet the flexible work model carries significant risks for future retirement rights.
Unlike EYT claimants, those who are “stuck on days” (EGT) will face a different problem under the new regulations: even if they meet the retirement age, they may still lack the required contribution days and therefore be unable to claim retirement.
Hard Times for Retirement
The group known as “stuck on days,” which will include people working under the accepted flexible work provisions, could face serious hardship unless further regulatory changes are made. Because under flexible work arrangements contributions are not paid by the employer or the state in some cases, workers may continue to work without contributions being recorded. As a result, they will encounter shortfalls in contribution days when they reach retirement age and may be forced to settle outstanding contribution debts.
Retiring is already becoming more difficult under current rules. For employees who began work before 8 September 1999 under the 4A/SSK system, the maximum required contribution days were set at 5,975. For those who started between 8 September 1999 and 30 September 2008 the threshold is 7,000 days, and for those who began after 1 October 2008 it is 7,200 days. If contribution payments are missed, individuals aiming to retire will face significant obstacles.
Pay Attention to Contribution Days Not Being Counted
Flexible or part-time work schemes include certain tax exemptions. For example, part-time workers may be exempt from income tax for up to 12 months. However, this creates risks: in part-time arrangements, if a person works fewer than 10 days in a given month, contributions that count toward retirement may not be registered for that month.
Consequently, part-time workers whose contributions are incomplete will face difficulties qualifying for retirement later. Without specific corrective measures, they may also be unable to make a lump-sum buyback for periods such as military service or childbirth, and paying a single large sum to cover missing contributions may not be permitted.
Under the new law, fixed-term contracts will also be used for workers under 25 and over 50. When fixed-term contracts end and there are gaps before a new job, contributions may not be paid during those intervals, making it harder to qualify for unemployment benefits and causing loss of contribution days for those idle periods.