On January 15, 2025, the Official Gazette (Issue No. 32783) published Law No. 7538, amending Article 81(ı) of Law No. 5510 on Social Security and General Health Insurance. The amendment reduced the employer’s social security contribution discount from five points to four points, except for the manufacturing sector, where the discount will remain five points until December 31, 2026. The President is authorized to extend this period until December 31, 2027.

Additionally, Provisional Article 108 was introduced, stating that the discount rate will vary based on the employer’s sector and that its implementation will be regulated by the Ministry of Labor and the Ministry of Treasury and Finance.

Following this amendment, the 2025/6 General Communiqué was issued on February 13, 2025, outlining the implementation details and procedures for the new regulation.

Implementation Details

According to amendments made to Article 81 of Law No. 5510, the government will now cover four points of the employer’s share in social security contributions for private sector employers starting from February 2025.

For manufacturing sector employers, this coverage will be five points from February 2025 to December 2026, and then revert to four points from January 2027 onwards, unless the five-point reduction is extended by the President.

Employers must comply with existing incentive regulations to qualify for the reduction. The Ministry of Treasury and Finance will oversee its implementation and financial management.

The reduction applies to the total earnings subject to premiums.

Example:
If an employer’s workforce has a total premium-based earnings of 120,000 TL and a premium contribution rate of 37.75%, the employer’s original contribution would be 45,300 TL. However, with the four-point reduction (4% of 120,000 TL = 4,800 TL) covered by the Treasury, the employer’s actual liability would be 40,500 TL.

Changes Based on Economic Activities (NACE Code)

The applicable reduction rate depends on the NACE economic activity classification of the business. If a company changes its NACE code, the premium reduction rate will be adjusted accordingly.

For example:

  • A food manufacturing business that switches to retail trade will see its reduction drop from five points to four points in the following month.
  • If the classification change is made retroactively, the initial premium declaration remains valid, ensuring consistency in the reduction application.

Interaction with Other Incentives

Employers using multiple premium reduction incentives will first apply the four or five-point reduction, followed by any additional incentives.

For instance:

  • An employer in the hospitality sector with investment incentives will first benefit from the four-point reduction, and then apply reductions from Ministry of Industry and Technology incentives.

Regulatory Compliance and Penalties

  • Employers found to misrepresent their NACE classification to gain a higher reduction will have to repay the wrongly obtained amount with penalties.
  • This reduction will be applied automatically under the existing “5510” law code during the declaration process. There will be no separate law number for this reduction; employers must select the “5510” code when submitting their declarations. The NACE classification of businesses will determine the applicable reduction, and the system will automatically assign the correct rate based on the registered business activity.
  • The provisions of the communiqué shall take effect from February 1, 2025, and shall be enforced as of its publication date.

General Communiqué  2025/6

Social Security Institution Presidency
General Directorate of Insurance Premiums

Document No: E-83604451-207.02-111996658
Subject: Four-Point Reduction
Date: February 13, 2025

📥Download Link: General Communiqué 2025/6 (In Turkish)