Voluntary Participation (IPS) Auto Enrollment System (AES) Funds Legislation Data Center

State Contribution

Employees are provided with the following within the scope of AES:

  • State contribution at a rate of 30 percent of the paid contributions
  • An additional 1,000-Turkish lira state contribution, if employees choose to remain in the system at the end of the two-month withdrawal period
  • An additional state contribution that equals 5 percent of the accumulations, in case of opting to receive the right of pension as a 10-year annuity

State contribution shall be calculated as commitment, and the committed amounts shall be recorded in the employee's state contribution account. Committed amounts shall be paid in cash to the relevant state contribution account based on the following progressive rates according to the length of time the contract remains in the system.

Employees shall be entitled to the amounts in their automatic participation state contribution account in the following ratios:

  • 15 percent by staying in the system for at least 3 years,
  • 35 percent, by staying in the system for at least 6 years,
  • 60 percent by staying in the system for at least 10 years,
  • 100 percent in the event of retirement, death or disability

However, there is an upper limit to the state contribution that will be calculated for the contributions. The state contribution amount an employee can receive within a calendar year shall not exceed 30 percent of the total annual gross minimum wage that is calculated based on the gross minimum wage determined for the relevant year. Contribution payments exceeding the aforementioned limit will be considered in the calculation of the State contribution as carryover contribution shares transferred to the company accounts on the first day of each year. The limit shall be calculated per each participant. The 1,000-Turkish lira state contribution shall not be included in the annual state contribution limit.

Separate State contribution limits have been set for the contracts within the scope of AES and IPS, respectively. In other words, based on the State contribution upper limits of the year 2024, an individual that is in both the voluntary IPS and automatic participation system can benefit from the maximum annual State contribution amount by paying a contribution of 240,030 TL for both contracts separately.

You can learn your remaining State contribution limit for the relevant year via the BES Mobile application provided by the Pension Monitoring Center or the e-State service.