A New Era in Retirement With Abroad Borrowing

The Omnibus Bill numbered 7186, published in the Official Gazette numbered 30836 on 19.07.2019, has increased borrowing premium rates and aggravated retirement of the Turkish nationals abroad through abroad borrowing by changing the insurance coverage status of borrowed period with the recent amendments in “the Law on Evaluating Duration Abroad of Turkish Nationals Residing Abroad numbered 3201”.

Abroad borrowing is considered as submitting Turkish citizens’ and Turkish citizens by birth, who lost their citizenship by obtaining an exit permit, for a certain duration of working abroad to the SSI for retirement by being indebted to SSI.

With the new amendment made on the Law numbered 7168, there are quite significant changes in regard to being indebted with Turkish citizens’ duration of working abroad and working as a housewife, as of 01.08.2019.

Amendments came into effect with the Law are as follows:

• As of 01.08.2019, borrowing amount has been set as a daily borrowing payment of insurance premium collected from citizens working abroad with the ratio equal to %45 of the daily income determined by the application owner, with the condition to remain within min. and max. limits of the daily income as a basis of the premium. In the previous application, this ratio was implemented as %32.
• As of 01.08.2019, abroad duration borrowing applications will be resulted within the scope of 4/b (Bağ-Kur) regardless of their insurance coverage status. In case it is not requested to retire through 4/b abroad borrowing, after being indebted, one can retire by working in an insured job in Türkiye and by paying premiums for at least 1261 additional days within the scope of 4/a (SSK).
• With the amendment, starting date of insurance coverage in abroad will not be accounted for the starting date of insurance in Türkiye.

You can access the relevant circular in Turkish from here.