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In this article we examine, in light of the relevant statutory provisions, the claim of private bank retirees bayram ikramiyesi for holiday bonuses. There are many private bank retirees in Türkiye. However, private banks refrain from paying retirees holiday bonuses (Eid al-Adha and Eid al-Fitr bonuses). In this case, private bank retirees have the option of bringing an action to recover their unpaid holiday bonuses together with interest.
Currency note
This article was prepared in accordance with the legislation and practice in force on its date of publication. Holiday bonus amounts and the rules concerning bank funds may have changed since then. You are advised to consult a lawyer for the current position.
As is known, private bank retirees are persons who have retired from these institutions and who at the same time receive a monthly pension from foundations established by private banks. These foundations are social security institutions established under Provisional Article 20 of the Social Insurance Law No. 506 in order to provide social security for their staff.
A new statutory provision was introduced by Additional Article 18, which was added to the Social Insurance and General Health Insurance Law No. 5510 by Article 23 of Law No. 7143 on the Restructuring of Tax and Certain Other Receivables and on Amendments to Certain Laws, published in the Official Gazette on 18.05.2018.
“Persons to whom the Institution pays income and pensions under this Law and the relevant legislation shall be paid a holiday bonus of TL 1.000 each at Eid al-Fitr and Eid al-Adha, provided that they are receiving income or a pension on the date of payment.”
Law No. 5510, Additional Article 18
Under this statutory provision published in the Official Gazette dated 18.05.2018, all retirees are to be paid a holiday bonus of TRY 1,000 each (TRY 1,100 as of 29.04.2021) at the Ramadan Feast and the Feast of Sacrifice.
Looking at Provisional Article 20 of the Social Insurance Law No. 506:
“Funds established as foundations or associations, up to the date of publication of this Law, to provide assistance in the event of the invalidity, old age and death of the personnel of banks, insurance and reinsurance companies, chambers of commerce, chambers of industry, exchanges or the unions formed by them shall, within six months at the latest from the date of publication of this Law: a) cover all staff of the bank, insurance company, reinsurance company, chamber of commerce, chamber of industry, exchange or their unions to which they relate, b) PROVIDE AT LEAST THE BENEFITS SET OUT IN THIS LAW to such staff in the event of work accidents and occupational diseases, sickness, maternity, invalidity, old age and death, maternity of their spouses, and sickness of their spouses and children”
Social Insurance Law No. 506, Provisional Art. 20
This is the wording of the provision. As can be understood from this, these funds/foundations, which have the character of social security institutions, are obliged TO PROVIDE AT LEAST THE BENEFITS PROVIDED FOR IN THE SSK LEGISLATION / AT LEAST THE RIGHTS ENJOYED BY SGK RETIREES.
Assessment in the article
Accordingly, under the statutory provisions cited above, it is a legal obligation for the said foundations/funds to pay a holiday bonus to their retirees. However, as matters currently stand, private banks are avoiding making these payments. In these circumstances, private bank retirees need to seek their rights by bringing an action against the funds/foundations that fail to pay.
Related legislation: Social Insurance Law No. 506 (mevzuat.gov.tr)
The article argues that the funds and foundations covered by provisional Article 20 of Law No. 506 are obliged to provide at least the benefits provided for in the SSK legislation, that holiday bonus payments are therefore a legal obligation, and states that if payment is not made, it may be claimed through legal action.
18.05.2018 tarihli Resmî Gazete’de yayımlanan 7143 sayılı Kanun’un 23. maddesiyle 5510 sayılı Kanun’a eklenen Ek Madde 18 ile getirilmiştir. Bu maddeye göre Kurumca gelir ve aylık ödenenlere Ramazan ve Kurban bayramlarında bayram ikramiyesi ödenir.
They are funds established to provide benefits in cases of disability, old age and death to the personnel of banks, insurance and reinsurance companies, chambers of commerce and industry, exchanges or their unions. The article states that they are in the nature of social security institutions.
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