Procedures and Principles Established for the 4-Point Insurance Premium Discount Application

As is well known, the 5‑point portion of the employer’s share of disability, old‑age, and death insurance premiums calculated based on the insured’s premium‑related earnings was applied as a discount to employers under certain conditions. However, with the new regulation, except for private sector employers operating in the manufacturing industry, starting from February 2025 the support provided for the employer’s share of disability, old‑age, and death insurance premiums will be applied as 4 points.

The procedures and principles regarding the implementation of this change have been defined by the Social Security Institution (SSI) in Circular No. 2025/6, and the key points are outlined below:

1. From Which Month/Period Will the 4‑Point Discount Application Begin?

Starting from February 2025, for insureds employed by private sector employers, the 4‑point portion of the employer’s share for the long‑term insurance branches—known as disability, old‑age, and death insurance premiums—will be covered by the Ministry of Treasury and Finance.

2. For Which Sectors Will the 5‑Point Discount Continue?

Private sector employers operating in the manufacturing industry will continue to benefit from the 5‑point premium discount for their insured employees during the period from February 2025 to December 2026.

From January 2027, however, this discount will be applied as 4 points.

In addition, the President is authorized to extend the duration of the 5‑point premium discount for the manufacturing sector until December 31, 2027.

3. Is Any Application Required to Benefit from the Discount?

No. The discount rate will be automatically determined by the system based on the establishment’s NACE code, and employers will be able to benefit from the discount without having to submit an application.

4. How Are Manufacturing Sector Establishments Determined to Benefit from the 5‑Point Discount?

The manufacturing sector that will benefit from the 5‑point discount is determined based on the NACE code. Accordingly, the business activities classified under Section “C (Manufacturing)” in the NACE Rev.2 Statistical Classification of Economic Activities will continue to benefit from this discount.

5. How Will a Change in the Establishment’s NACE Code Affect the Premium Discount?

If an establishment’s NACE code changes, the discount rate will become effective from the month/period following the change. Accordingly, the new discount rate will be calculated based on the establishment’s current business branch code as indicated in the monthly premium and service certificate as well as in the withholding tax and premium service declaration.

6. How Will the Premium Discount Be Calculated if the Establishment’s NACE Code Is Changed Retroactively?

If the NACE code is changed retroactively, the discount rate will be applied based on the business branch code that was valid on the date the first document—issued within the legal period for the effective month/period of the NACE code change—was issued.

7. Will the Premium Discount Continue to Be Applied in Conjunction with Other Incentives?

Yes, the premium discount will continue to be applied together with other incentives. In cases where the employer’s share discount for disability, old‑age, and death insurance premiums is applied concurrently with other insurance premium supports for the same period, establishments will primarily benefit from this discount.

After applying the 4‑/5‑point discount on the insured’s premium‑related earnings, the remaining employer’s share will then be taken into account for the application of other insurance premium supports.

8. Is It Necessary to Select a Specific Law Number to Benefit from the 4‑/5‑Point Premium Discount?

No, a separate law number will not be created to benefit from this discount. Employers will continue to benefit from the discount by selecting Law No. 5510.

9. What Happens If an Establishment Falsely Declares Its NACE Code to Benefit from a Higher Premium Discount?

If it is determined that an establishment has registered its business branch code falsely in order to benefit from a higher premium discount, the amount covered by the Treasury will be reclaimed from the employer along with a late fee and interest for the delay.

10. Have the General Conditions for Benefiting from the 5/4‑Point Discount Changed, and What Are the Conditions?

There have been no changes to the general conditions for benefiting from the 5‑/4‑point discount. To benefit from the discount, the following conditions must be met:

• The monthly premium and service certificate (or the withholding tax and premium service declaration) must be submitted within the legal period, and the premiums must be paid within that period.
• There must be no outstanding debts for premiums, administrative fines, or related late fees and penalties—or if such debts exist, they must have been restructured or paid in installments in accordance with the relevant laws, with the restructuring/installment process continuing.
• There must be no employment of uninsured workers or submission of false insurance notifications.

You can reach the Circular via that link. (In Turkish)