AUTOMATIC PARTICIPATION AGREEMENT (OKS)
Public and private sector employees under the age of 45 can be automatically enrolled in the Private Pension System through their employers.
What are the Details of Automatic Enrolment Contract (OKS)?
As of 01.01.2017, the automatic enrolment period started in the PPS. Employees working in the public and private sectors and newly hired employees under the age of 45 have started to be automatically included in the Private Pension System through their employers. Employees over 45 years of age can be included in automatic enrolment if they request.
The innovations brought by automatic enrolment, which aims to encourage employees to save:
- The contribution share is 3% of the employee's earnings based on the premium or pension deduction,
- In addition to the 30% state contribution, a one-off initial state contribution of 1,000 TL,
- An additional 5% state contribution in case the savings are transferred to income insurance for at least 10 years during retirement.
- OKS contracts are separate from private pension contracts and can benefit from state contribution up to the annual minimum gross wage amount in the state contribution calculation.
