Draft Omnibus Bill Affecting Employers and Insured Employees Submitted to the Turkish Grand National Assembly

The "Draft Law on Amendments to the Tax Laws, Certain Other Laws, and Decree Law No. 631" was submitted to the Turkish Grand National Assembly on October 17, 2025.

Commonly referred to by the public as the "Draft Omnibus Bill," the proposal includes several significant amendments to social security legislation that directly affect both employees and employers.

The main changes proposed in the field of social security and their effective dates are detailed below:

Main Amendments Proposed Under the Draft Bill

1. 4-Point Premium Contribution Reduction (Non-Manufacturing Workplaces)

The 4-point reduction applied to the employer's share of disability, old-age, and survivors' insurance premiums, calculated on the employees' earnings included in the social security contribution base, for private sector employers outside the manufacturing industry, has been reduced to 2 points. (Effective Date: Beginning of January 2026)

2. Increase in the Upper Limit of the Social Security Contribution Base

The daily upper limit (ceiling) of the social security contribution base has been increased from 7.5 times to 9 times the current minimum wage. (Effective Date: January 1, 2026)

3. Increase in Long-Term Insurance Branch Premium Rates

Under disability, old-age, and survivors' insurance, the employer's contribution rate has been increased from 11% to 12%, while the employee's contribution rate remains at 9%. Accordingly, the total rate rises from 20% to 21%. (Effective Date: Beginning of January 2026)

4. Increase in Contribution Rates for Service Credit Purchases
• For all types of service credit purchases other than maternity (birth) service credit, the premium rate has been raised from 32% to 45%. (Effective Date: January 1, 2026)
• The contribution rate for insured persons working under part-time employment contracts has been increased from 20% to 39%. (Effective Date: January 1, 2026)
5. Increase in Voluntary Insurance Premium Rate

The premium rate, previously set at 32% of the monthly earnings included in the social security contribution base, has been increased to 33%. (Effective Date: Beginning of January 2026)

6. Additional Article 5 (Agricultural and Forestry Workers)

The premium rate, which is 34.5% of the daily earnings determined by the insured person and included in the social security contribution base, has been increased to 35.5%. (Effective Date: Beginning of January 2026)

7. Additional Article 6 (Commercial Taxi, Minibus, etc. – Part-Time Workers)

The premium rate of 32.5%, calculated on thirty times the daily earnings included in the social security contribution base, has been raised to 33.5%. (Effective Date: Beginning of January 2026)

8. Additional Article 9 (Domestic Workers Employed Less Than 10 Days a Month)

The premium rate of 32.5%, paid for insurance coverage under Article 4/a by individuals working in domestic services for less than 10 days per month and calculated on the social security contribution base, has been increased to 33.5%. (Effective Date: Beginning of January 2026)

9. New Additional Article 24 – Deduction of Contribution Debts from Pensions

With the newly added article to Law No. 5510, it is regulated that up to 25% of the income or pension payments made by the Institution to beneficiaries may be deducted to collect unpaid premiums or service credit debts arising from their own insurance status or that of their dependents. (Effective Date: January 1, 2026)

Conclusion and Recommendations

The Draft Omnibus Bill is still in the legislative process. However, if it is enacted in its current form:

• As of the beginning of 2026, both employees' service credit costs and employers' social security contribution expenses will increase.
• Employers are advised to take these increases into account, particularly in their 2026 budget planning, while insured employees may benefit from a cost advantage by completing their service credit applications within 2025.

You can access the relevant draft law here. (In Turkish)

Should you have any queries or need further details, please contact your customer representative.