The short term insurance premium rate is determined by the SSI following registration with the Social Security Institute by taking into account the level of occupational accident and illness risks and applying a rate ranging from 1%-6.5%. Workplaces that have premiums based on the 1% pay a much lower employer premium amount than workplaces that are known to be more dangerous. In a publication of the official gazette on 19.01.2013, it was announced that as of 01.09.2013 the Premium rates will be fixed at 2% and will be independent of danger level. As of result of this change, workplaces that are currently paying premiums at a rate lower than 2% will be faced with an increase in their SSI contribution amount, while workplaces that are paying over 2% will see a decrease in their premium amounts. Organizations that are currently paying a 2% premium will not be affected by this changes. It is important to note that only the employer premium contribution amounts will be affected by this change.
The Cabinet of Minister have the authority to reduce the 2% fixed rate to 1.5% and also to increase it to 2.5%
The changes can be explained using the following example: The short term insurance employer contribution for an organization with a danger level resulting in the 1% rate and who has an employee who earns a monthly gross salary of 5000 TRY is 50 TRY. As of the 1st of September, this figure will be increase to 100 TRY.
As a result of the aforementioned changes and, the SSI sent out a notification stating that the e-declaration system will be out of service and inaccessible due to updates on the dates of August 30-31 2013.