Those Affected by the Retirement Age Limit – EYT – 2026

Those Affected by the Retirement Age Limit – EYT – 2026. In the history of social security in the Republic of Turkey, one of the regulations that has most deeply affected the demographic structure, the labor market, and public finance is undoubtedly the process of resolving the issue of “Those Caught by the Age Barrier in Retirement” (EYT). Enacted in 2023 and with its effects multiplying each year, by 2026, this regulation has gone beyond merely being an “early retirement” right and has settled at the center of the country’s macroeconomic balances. This report aims to address the status of retirees under EYT as of January 2026, their salary increases, their roles in working life, the legal struggle of victimized groups excluded from the system (interns and apprentices), and the repercussions in the banking sector, in the light of current data sets and legal regulations, with academic rigor and comprehensive depth.

Social security systems are inherently based on an intergenerational contract. In pay-as-you-go systems where the active working population finances the passive retired population with their premiums, maintaining actuarial balance is vital. However, the age requirement introduced by the reform in 1999 was perceived as a “change of game rules” for those who entered the system before that date, and was reversed with the EYT law after a quarter-century struggle. 2026 is a critical year in which the financial and social bill of this step back is seen most clearly, and the system is trying to find its new balance.

The scope of the report is not limited to describing the current situation, but aims to analyze the second and third-degree effects indicated by the data, examine cause-and-effect relationships, and present projections for 2027 and beyond. Prepared in the light of Ministry of Labor and Social Security data, Turkish Statistical Institute (TÜİK) inflation figures, and banking sector data, this report serves as a reference source for policymakers, market professionals, and academic researchers.

2. Pension Economy and Wage Policies in Fiscal Year 2026

The year 2026 has become a period in which “purchasing power” discussions have peaked in the determination of pension amounts, under the shadow of inflationary pressures brought about by the global and local economic conjuncture. Pensions are the largest transfer expenditure item affecting not only the welfare level of individuals but also aggregate demand and consequently economic growth.

2.1. January 2026 Increase Rates: Dual Structure and Divergence

The January 2026 period increases have once again revealed the gap created by the status differences in the Turkish social security system (SSK, Bağ-Kur, and Emekli Sandığı) in salary increase mechanisms. The different application of inflation data and collective bargaining provisions has caused an “income divergence” among retirees.

2.1.1. Increase Dynamics for SSK (4A) and Bağ-Kur (4B) Retirees

Salary increases for this large group covering worker and tradesmen retirees were directly indexed to the Consumer Price Index (CPI) rate realized in the second half of 2025. As of January 2026, this rate has been finalized as 12.19%. This rate is in the nature of compensation for past 6-month inflation and does not include any welfare share or collective bargaining increase.

In an inflationary environment, the high weight of food and housing in the expenditure basket of fixed-income retirees causes the 12.19% increase to fall short against the felt inflation. Especially for millions of retirees with low root salaries, this rate means an erosion in real income.

2.1.2. Civil Servant Retirees (4C) and Collective Bargaining Effect

For civil servant retirees, the situation was determined by a different arithmetic within the framework of the 8th Term Collective Bargaining provisions. According to this agreement covering the 2026-2027 period, civil servants and civil servant retirees gained the right to an 11% collective bargaining increase for the first six months of 2026. With the addition of the inflation difference from the previous period, the total increase rate reached 18.60%.

Furthermore, although the additional payment of gross 1000 TL (net average 860 TL) made to the base salaries of active civil servants is not reflected in the salaries of civil servant retirees, the increase of the lowest civil servant salary to 56,590 TL shows that the link between retired civil servant pensions and active civil servant salaries retains its importance (in terms of bonus calculations, etc.).

Table 1: Comparison of Pension Increases by Status for January 2026 Period

Retirement Status	Increase Determination Method	Increase Rate
SSK (4A)	6-Month CPI (Inflation Difference)	12.19%
Bağ-Kur (4B)	6-Month CPI (Inflation Difference)	12.19%
Civil Servant Retiree (4C)	Collective Agreement (11%) + Inflation Diff.	18.60%

The 6.41 percentage point difference seen in the table constitutes one of the largest deviations in practice from the “unity of norms and standards” principle in social security law. This situation creates purchasing power inequality among retirees of different statuses shopping at the same market.

2.2. The “Root Salary” Problem and Minimum Pension Regulation

The most controversial technical issue of the system after the EYT regulation is the subsidization by the Treasury of the difference between the “root salary” and the “salary received”. Monthly Calculation Rates (ABO), which fell after the 2008 reform, left the calculated pensions (root salary) of those with low premium days and earnings well below the minimum subsistence limit.

2.2.1. 2026 Base Pension: 20,000 TL

The government, within the framework of the social protection shield, has updated the regulation stipulating that no retiree should receive a salary below a certain amount, regardless of the calculated root salary, for the year 2026. Accordingly, the lowest pension, which was at its previous level of 18,938 TL (with the increase), has been raised to 20,000 TL with the law proposal.

2.2.2. Cost Reflected to the Treasury and Affected Audience Analysis

The impact of this regulation on the budget is massive. Analyses show that approximately 4.9 million retireeswhose root salaries remain below 17,141 TL are directly affected by this regulation. In other words, about 5 million retirees receive the base salary determined by the state as social assistance, not the salary they deserve in return for premiums.

This situation has two main consequences:

Financial Burden: A transfer of 69.5 billion TL will be made from the Treasury budget in the first 6 months of 2026 (January-July) just to pay the difference between the root salary and 20,000 TL. This figure is more than the investment budget of many ministries.
Systemic Loss of Motivation: Equalizing the salaries of those who pay high premiums and those who pay minimum premiums at the 20,000 TL base damages the principle of “those who pay more premiums receive more salary” and creates a side effect encouraging informal employment (paying premiums from the minimum).

2.3. Central Government Budget and Social Security Deficits

The pressure of these salary increases and EYT costs on the budget in 2026 is clearly monitored in the Ministry of Treasury and Finance reports. In an environment where central government budget expenditures exceeded 10 trillion TL and the budget deficit occurred at the level of 1.2 trillion TL as of September 2025, additional EYT costs and salary increases in 2026 continue to be the largest expenditure item straining fiscal discipline. Considering that the first-year cost of EYT was 724 billion TL, it is likely that the cumulative cost in 2026 will approach the 1.5-2 trillion TL band with the effect of inflation.

3. Post-Retirement Working Life: EYT Effect in the Labor Market

The EYT law presented a model that encourages retired individuals not to break away from working life but to continue production by changing status (retired employee). The “Social Security Support Premium” (SGDP) application has become one of the main factors determining the dynamics of the labor market in 2026.

3.1. Cost of Employing Retirees for Employers (2026)

With the gross minimum wage determined as 33,030.00 TL in 2026, the cost structure of retired employees has also changed. For employers, employing experienced EYT individuals requires a careful calculation in terms of insurance costs, although it is advantageous in terms of productivity.

3.1.1. SGDP Calculation Methodology

“Long-term insurance branch” premiums are not deducted from the salary of a retired employee; instead, SGDP is deducted. The 2026 parameters are as follows:

Employee Share: 7.5% of the gross wage is deducted from the employee’s salary. This deduction does not increase or decrease the employee’s pension.
Employer Share: 24.75% of the gross wage is paid by the employer.
Short-Term Insurance Branch Premium: This rate is 2.25% in 2026 and is covered by the employer.

In the light of these data, the cost table of a retired employee with minimum wage is shaped as follows:

Table 2: 2026 Minimum Wage Retired Employee Cost Analysis

Cost Item	Rate	Amount (TL)	Description
Gross Minimum Wage	–	33,030.00	2026 Base Wage
SGDP Employer Premium	24.75%	8,174.93	Employer cost
Short-Term Insurance Premium	2.25%	743.18	Employer cost
Total Employer Cost	~27%	41,948.11	Gross Wage + Employer Shares
SGDP Employee Share	7.5%	2,477.25	Deducted from gross wage
Net Received (Excluding Tax)	–	30,552.75	Amount paid to worker (Approx.)

Note: The net wage calculation is given as an approximate value considering Income Tax and Stamp Duty exemptions.

The fact that the total burden for the employer is approximately 27% above the gross salary may create a cost difference compared to normal employees (in the absence of incentives). However, whether the 5-point Treasury incentive continues is a factor affecting the employer’s decision. In 2026, these costs appear as a factor increasing the risk of informal employment (employing retirees without insurance).

3.2. Substitution and Experience Transfer in the Labor Market

A significant portion of the 3.1 million people who retired with EYT continued to work in their current jobs. Although this situation prevented “experience loss”, it is debatable whether it created a “crowding-out effect” on youth employment. While the retention of retired employees in the labor market allows firms to preserve corporate memory, it can also create a barrier limiting new graduates’ access to entry-level positions. The continued shortage of “masters” (skilled tradesmen), especially in the industrial sector in 2026, increased the value of EYT masters and moved them to a position with high bargaining power.

4. The Unresolved Knot: Internship and Apprenticeship Victims (2026 Status)

While the EYT law became a milestone for those with insurance entry before September 8, 1999, it turned into a great disappointment for hundreds of thousands of citizens who stepped into working life as “interns” or “apprentices” before this date but whose entries were not counted in the retirement calculation. In 2026, “Internship and Apprenticeship Victims” platforms continue their pursuit of rights at the highest level.

4.1. Technical and Legal Distinction: Short-Term vs. Long-Term Insurance

At the root of the problem lies the distinction of insurance branches in the Social Insurance and General Health Insurance Law No. 5510.

Current Practice: Insurance made during vocational high school internship or apprenticeship training covers only “Work Accident and Occupational Disease” and “Sickness” (Short-Term Insurance Branches) risks. During this period, “Disability, Old Age and Death” (Long-Term Insurance Branches) premiums required for retirement are not paid.
SGK’s Stance: SGK accepts the date on which the long-term insurance premium (MYÖ) was deposited for the first time on behalf of the person as the beginning of the retirement service period. For this reason, even if an entry date before 1999 (e.g., 1996) appears in the e-Government system, this date is not accepted as a “start” in the retirement account.

4.2. Demands and Law Proposals in 2026

The main demand of the victims is that the insurance registration number given during the internship and apprenticeship period be counted as the start of retirement and that the missing premium days be paid through borrowing.

Demand for Borrowing Right: While lawyers and doctors have the right to borrow internship periods, the denial of this right to vocational high school graduates is defended with the claim of violation of the principle of equality in the Constitution. With the requested regulation, it is desired to operate the provision “In case of borrowing for periods after the start date of the insured, it is added to the insurance period”.
Scope: A possible regulation is expected to cover vocational high school students, university interns, apprentices within the scope of Vocational Education Law No. 3308, and candidate apprentices.

4.3. Political Will and Budget Constraints

As of January 2026, although law proposals regarding counting internship and apprenticeship insurance for retirement given by opposition parties have come to the agenda of the Parliament, a “green light” has not been given by the ruling wing and the economic administration. The main reason for this is the desire not to add a new early retirement cost on top of the heavy financial burden brought by EYT. It is understood from the attitudes in the 2026 budget negotiations that the Ministry of Treasury and Finance stands distant from this regulation by observing budget balances. However, local election processes or changes in the political conjuncture have the potential to bring this issue to the negotiation table at any moment.

5. Gradual Retirement: Search for Justice and 2000-2008 Entrants

The determination of September 8, 1999, as a definite limit by the EYT regulation has produced dramatic results such as “retirement 17 years later due to one day”. Those who started working on September 9, 1999, and later (especially between 2000-2008) have organized under the roof of non-governmental organizations such as “EMADDER” (Association for Justice in Retirement) and carried the “Gradual Retirement” demand to the 2026 agenda.

5.1. Gradual Retirement Expectation and Realities in 2026

The model requested for this group is to increase the age requirement gradually according to the date of employment (e.g., 43, 44, 45 years) instead of suddenly increasing to 58/60. However, as of 2026, there is no concrete work on gradual retirement on the government’s official agenda and the Parliament’s agenda.

Defense of the System: The economic administration argues that maintaining the current age conditions is essential for the sustainability of the actuarial balance of the social security system until the 2040s. For those entering after 2000, the condition of 58 years for women, 60 years for men, and 7000 days of premium (or 25 years of insurance and 4500 days) remains valid in 2026.

6. Partial Retirement and the 3600 Days Formula (2026 Practices)

The EYT law has also kept the door of “partial retirement” (retirement due to age) open for insured persons who cannot meet the full retirement conditions but are advanced in age. In 2026, the retirement process for those who meet the condition of 15 years of insurance and 3600 days of premium payment operates depending on the gradual age condition.

6.1. Retirement Conditions with 3600 Days and Age Scale

Those with insurance entry before September 8, 1999, can retire at ages varying according to the date they completed at least 15 years of insurance period and 3600 days of premium payment.

Women: They retire between the ages of 50 and 58 according to the date they complete 3600 days and 15 years. For women who meet the conditions after 24.05.2011, the age requirement is 58.
Men: Similarly, they are subject to a gradual age between 55 and 60. For men who meet the conditions after 24.05.2014, the age limit is 60.

This situation shows that the perception of “immediate retirement with 3600 days” is wrong, and an age gradation (unlike the EYT law) operates here as well.

6.2. Severance Pay Right and “Conditions Other Than Age for Retirement”

One of the most important rights for employees in 2026 is the possibility to resign and receive severance pay without retiring. An employee (entrant before 08.09.1999) who completes the 15-year insurance period and 3600 days of premium payment can resign and receive their severance pay by submitting the “Can Receive Severance Pay” letter obtained from SGK to the employer.

This right serves as both a financial assurance and a lever for career change for employees. The increase in the severance pay ceiling with the 18.60% increase in the civil servant salary coefficient in 2026 has also increased the amount of compensation to be received for employees who choose this path.

7. “Promotion Wars” in the Banking Sector: 2026 Market

Pension salaries are of strategic importance for banks because they are a regular, guaranteed, and demand deposit (or low-cost) source. In January 2026, the “race to grab pension salaries” among banks carried promotion amounts to historical peaks.

7.1. Promotion Amounts and Marketing Strategies

Banks aim to increase cross-selling revenues by selling credit cards, overdraft accounts (KMH), and automatic payment orders to these customers, in addition to acquiring salary customers. According to January 2026 data, the market is as follows:

Ceiling Promotions: Some private banks offer total cash promotion packages of up to 24,000 TL with additional product usage conditions (credit card spending promise, bill instruction, etc.).
Base/Standard Payments: Amounts paid in return for only a 3-year salary commitment without additional conditions vary between 8,000 TL and 12,000 TL depending on the salary bracket.

Table 3: January 2026 Bank Promotion Market Analysis

Salary Bracket	Standard Promotion (Average)	Maximum Promotion with Additional Conditions
10,000 – 14,999 TL	8,000 TL	17,000 TL
15,000 – 19,999 TL	10,000 TL	21,000 TL
20,000 TL and Above	12,000 TL	24,000 TL

These figures mean almost 1-1.5 months of salary bonus for a retiree. The ease of changing banks without going to the branch thanks to e-Government integration keeps customer mobility (churn rate) among banks at the highest level in 2026. Banks resort to financing this high-cost customer acquisition with high-interest consumer loans offered to retirees.

8. Macroeconomic and Sociological Inferences: Future Expectations

In this final section of the report, a holistic analysis of the data presented above will be made, and the effects of EYT on Turkey for 2026 and beyond will be discussed.

8.1. Sustainability Risk and Actuarial Balance

SGK’s 2026 budget balance shows that the burden brought by EYT (annual cost exceeding ~1 trillion TL) cannot be managed without Treasury transfers. The regression of the Active/Passive ratio (number of employees financing one retiree) to levels of 1.5 is an indication that the system is giving an alarm. While this ratio should be 4 in an ideal system, in Turkey, this ratio has fallen below the critical threshold after EYT.

This situation may necessitate the following policy options in 2027 and beyond:

Raising the Retirement Age: Beyond the current gradual age increase, a new reform to fix the retirement age at 65 or 67 for women and men may be discussed.
Complementary Pension System (TES): Based on the fact that the state cannot sustain the system based solely on SGK, it is a strong possibility that it will make a second-pillar pension system mandatory, where a portion of the severance pay is transferred to the fund.

8.2. Income Distribution and Social Justice

In 2026, the salary increase difference between SSK/Bağ-Kur and Civil Servant retirees (12.19% vs 18.60%) and the root salary victimization damage the perception of social justice. Social pressure on the government to enact a comprehensive “Adjustment Law” (İntibak Yasası) that will close this gap between different statuses will increase. Otherwise, income inequality among retirees will continue to be a source of social unrest.

8.3. Conclusion

2026 is a year in which the results of the EYT process have fully crystallized. Over 3.1 million new retirees, promotions up to 24,000 TL, a base pension of 20,000 TL, and an additional cost of 27% in the labor market are the parameters of this new period. However, the unresolved problems of internship victims and those waiting for gradual retirement show that the EYT file has not been fully closed yet. Turkey will be busy managing the financial and social consequences of this step taken in 2023 for the next decade. Finding a sustainable balance in this area where economic reason and political choices conflict is one of the most critical tests for the country’s fiscal future.

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