Policies and Objectives for Employees and Employers in the Medium-Term Program

The 2026–2028 Medium-Term Program (MTP), published in the 1st Duplicate Official Gazette dated September 7, 2025 and numbered 33010, is the main strategic document that outlines Türkiye's macroeconomic policy framework for the next three years. The program sets out in detail the macroeconomic targets for the 2026–2028 period as well as the policies to be pursued in economic and social fields.

This study explains the objectives and planned regulations in the MTP regarding labor relations, employment, and industrial relations.

In the MTP, macroeconomic goals and programs are examined under eight main headings:

1. Growth
2. Employment
3. Price Stability
4. Balance of Payments
5. Financial Stability
6. Public Finance
7. Business and Investment Climate
8. Matters Relating to Central Government Budget Appropriation Ceilings and the Budget Process

While the other sections also include objectives and policies that can be evaluated within the scope of workforce structure and industrial relations, it is observed that the priority reform areas, policies, and measures prominent in public debate and directly affecting labor relations such as workforce quality, working arrangements, and labor force participation are mainly addressed under the Employment and Financial Stability headings.

As of 2024, with the unemployment rate at 8.7%, the target is to reduce this rate over the years by creating an average of 842,000 additional jobs annually, bringing the unemployment rate down to 7.8% by 2028. It is also noted that the aim is to adapt to the evolving dynamics of the labor market and to strengthen secure flexibility.

Within this target, it is anticipated that new regulations may be introduced regarding part-time work arrangements, temporary employment relationships, and private employment agencies. In addition, it is understood that the eligibility conditions for passive labor market policies such as unemployment benefits, short-time working allowance, wage guarantee fund, and partial working allowance will be eased. The details of these regulations will become clear once the relevant laws and regulations are enacted.

It is further stated that the scope and effectiveness of active labor market policies will be expanded to increase the participation in employment of groups facing difficulties in entering the labor market; particularly women, young people, and persons with disabilities.

In this context, it is envisaged that vocational training courses, labor market adaptation programs, and entrepreneurship programs will be implemented, primarily under the leadership of the Turkish Employment Agency (İŞKUR).

The program also outlines policies aimed at reintegrating the inactive labor force into the economy and increasing both social welfare and labor force participation.

To ensure work-life balance and enhance employee productivity, the introduction of flexible working-time models and adjustments to working days are planned. However, since no details are provided, it is worth noting that there is currently insufficient information to conclude whether weekly working days and hours will actually be reduced.

Another critical policy area concerns increasing women's employment. To promote women's participation in the labor force, it is targeted to implement after-school cultural and skills programs for children and to expand access to daycare and institutional childcare services. If realized, these policies could significantly boost women's labor force participation in large cities through after-school programs, while the expansion of daycare and childcare services could increase women's employment rates in the medium term.

Supplementary Pension System (TES)

Within the framework of financial stability targets and policies aimed at increasing savings, it is planned that the Automatic Enrollment System (OKS) will be strengthened through employer contributions and transformed into a second-pillar pension system under the name of the Supplementary Pension System (TES). In this context, the system's appeal is expected to be enhanced by simplifying deduction rates and ensuring OKS–Private Pension System (BES) integration, as well as by expanding partial withdrawal options to meet employees' flexible financial needs.

This regulation is particularly noteworthy as it directly affects both employees and employers. Although legal provisions regarding the conditions of the Automatic Enrollment System (OKS) currently exist, as of today there is no binding regulation concerning the future evolution of the system into the Supplementary Pension System (TES). The details will become clear once the relevant legislation is enacted, at which point we will conduct a detailed assessment.

At the same time, employees' awareness of savings and retirement will increase, enabling them to make long-term plans. Systems such as TES may also encourage employees to remain with the same employer for longer periods, since accumulated savings can directly influence decisions about leaving a job. On the other hand, as employer contributions to OKS/TES will create additional costs, the restructuring of salary and benefits packages may come onto the agenda.

With the MTP, the "Regulations for Priority Reform Areas" are detailed in the program annex. Within the scope of our review, the key objectives, the actions planned to achieve these objectives, and the implementation timeline are presented below:

You can access the Medium-Term Program here. (In Turkish)