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

State Contribution

State contribution is the 25-percent state-paid part of the contributions you pay for your individual or group individual contract. State contribution upper limit shall be 25 percent of the annual gross minimum wage, which is 8,829 Turkish lira for the year 2020. The state contribution shall not be paid for the contributions made on your behalf by your employer.

The Pension Monitoring Center shall calculate the contribution based on the data provided by the pension companies.

The state contribution amount shall be paid into your account on the month following the month when the contribution was sent in cash to your pension company account.

You shall be entitled to state contributions into your individual pension state contribution account in the following ratios:

  • 15 percent, if you stay in the system for at least 3 years,
  • 35 percent, if you stay in the system for at least 6 years,
  • 60 percent, if you stay in the system for at least 10 years,
  • 100 percent in the event of retirement, death or disability.

You can receive state contribution within a limit for all your payments under the categories of regular, additional or initial contribution. The amounts that are sent through accumulation transfer by becoming vested from a foundation and retirement fund, or from another pension company or noncontributory group contract shall not be taken into account in the state contribution account.

You can access detailed information on your state contribution amount on the website of the pension company or Istanbul Settlement and Custody Bank Inc. Go to the Pension Monitoring Center e-State service to view the difference between the maximum state contribution you can receive for the relevant year and the state contribution you are currently receiving.