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The Committee notes the detailed report of the Government and would like it to supply additional information and explanations on the following points.

1. Part II (Medical care), Article 10, paragraph 2, of the Convention. The report states that, in case of out-patient treatment, a worker insured under Laws Nos. 506 and 2925 has to pay 20 per cent of the cost of the prescribed medicines in respect of himself and 10 per cent in respect of his dependants, as well as 20 per cent of the cost of medical tools and prosthetic appliances, subject to a ceiling which may not exceed the current minimum wage (531 YTL in 2006). Comparable cost-sharing requirements in respect of civil servants insured under Law No. 5434 are much less demanding: the beneficiary pays only 10 per cent of the cost of prosthetic appliances, medical tools and medicines, subject to a ceiling which may not exceed the minimum pension paid by the pension fund covering civil servants (591.47 YTL in 2006). Moreover, the fund pays full cost of medicines in case of outpatient or home treatment of persons requiring long-term treatment for illnesses determined by the Ministry of Health (tuberculosis, cancer, chronic kidney disease, settled insanity, transplantation, etc.). In the light of this comparison, the Committee would like the Government to show that the rules and levels of cost-sharing established for the salaried workers are so designed as to avoid hardship, as well as to indicate whether similar provisions of reducing the burden of cost-sharing as are foreseen for the civil servants exist also for the salaried workers.

2. Part III (Sickness benefit). Article 16, paragraph 1 (in conjunction with Article 68). The report states that daily cash benefits in case of sickness is paid at the rate of one-half for inpatients undergoing treatment in medical establishments and of two-thirds for outpatients. The Committee would like the Government to explain the reason for reducing the rates of sickness benefit in these cases, taking into account that Article 69(b) of the Convention authorizes reduction of benefit to the extent prescribed only as long as the person concerned is maintained at public expense or at the expense of a social security institution or service.

3. Part VIII (Maternity benefit). Article 52. The report states that the daily temporary incapacity allowance is paid for the total period of eight weeks before and after confinement. The Committee would like the Government to explain how effect is given to Article 52 of the Convention, which provides for a minimum duration of the benefit payment of 12 weeks.

4. Reform of the social security system. By Law No. 5502, effective since 22 May 2006, social security agencies were unified into a single Social Security Institution, financially and administratively autonomous public body supervised by the Ministry of Labour and Social Security. The Law regulates in a systemic manner the powers, competencies, functions and organization of the new Social Security Institution. Law No. 5510, effective on 1 January 2007, established common norms and standards for programmes under the social insurance and the general health insurance and formed a universal health insurance. The Law determines the scope of personal coverage under social insurance programmes and the universal health insurance, benefits to be provided, conditions of eligibility, methods of financing, principles and procedures of their operation. The Committee notes these developments with interest and would like the Government to explain their impact on the application of the corresponding parts of the Convention in its next report.

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With reference to its previous comments, the Committee notes the detailed information provided by the Government in its report of 2001, as well as in the 20th and 21st annual reports on the application of the European Code of Social Security (ECSS), and in particular that concerning the revision of the rates of current periodical payments for long-term benefits (Article 65(10) or 66(8) of the Convention) and the statistics on the number of employees covered by social security in relation to the total number of employees in the country (Article 76). The Committee also notes the observations made by the Turkish Confederation of Employer Associations, the Confederation of Turkish Trade Unions and the Confederation of Progressive Trade Unions of Turkey supplied by the Government together with its report.

Part XI (Standards to be complied with by periodical payments), Article 65 or 66 of the Convention. In its 20th annual report on the ECSS, which contains more up-to-date statistics than the report on the Convention, the Government provides detailed calculations of long-term benefits (old-age, invalidity and survivors’ benefits) according to the previous legislation for periods of insurance prior to 1 January 2000 and according to the new rules for periods of insurance after 1 January 2000. These calculations are made "for a manual worker such as a turner" in the private sector of the economy, whose average monthly earnings would correspond to the reference wage of a skilled manual male employee selected in accordance with Article 65, paragraph 6(a), of the Convention. The Committee notes in that respect that the Turkish Confederation of Employer Associations also considers it more appropriate for the Government to provide statistics on the rates of the benefits paid to a typical beneficiary whose earnings are equivalent to a skilled blue-collar male worker, as was previously requested by the Committee. On the basis of these statistics, given on page 85 of the 20th report on the ECSS, the Committee observes however that, in comparison with the reference wage of a turner calculated for the first half of 2001, the amounts of long-term benefits calculated in the report as of 1 July 2001 for the model beneficiaries having accomplished different contributory periods (21 years in the case of old-age and invalidity pension and 7.5 years in the case of invalidity and survivors’ benefits) would not in any of these cases attain the replacement levels prescribed by the Convention for the benefits in question. It further notes that the maximum amount of the old-age pension for private sector employees, together with the social support increment (as indicated in the table on page 35 of the 20th annual report), in June 2001, attained only 36 per cent of the reference wage of a turner, instead of 40 per cent prescribed by the Convention. In view of this situation and the fact that Turkish legislation also guarantees minimum amounts of benefits, the Government may wish in future to consider basing its calculations of the level of long-term benefits on the provisions of Article 66 of the Convention taking as a reference the wage of an ordinary adult male labourer, who may then be represented not by a turner, but by a person deemed typical of unskilled labour in the manufacture of machinery other than electrical machinery, as suggested in paragraph 4(a) of this Article.

To ascertain whether the level of the benefits in Turkey meets the replacement levels established by this Article, the Committee would ask the Government to include in its next report detailed information on the wage of an ordinary adult male labourer selected under paragraph 4 or 5 of Article 66, as it chooses, as well as on the amount of the benefit due to a standard beneficiary for each contingency in the manner required in the report form under Article 66 (Titles II to IV). Moreover, in view of the monthly adjustment of benefits to the inflation rate in Turkey, both sets of figures - for the reference wage and for the level of benefits, including minimum and maximum benefits - should be given on a monthly basis for the whole reporting period, accompanied by the corresponding data on the changes made by the Council of Ministers to the minimum and maximum limits of the daily earnings taken into account for the calculation of benefits. The Government should also continue to supply the data necessary for the calculation of benefits under the old rules, indicating in particular the wage taken into account for the calculation of pensions and corresponding to the highest index in the table of indices, as well as the changes in the applied coefficient. The task of the Committee would be greatly facilitated if, in the Government’s next report, the above statistical information for the calculation of the benefits under the joint (old and new) system were presented in a consistent form for the whole period since the introduction of the new rules, that is since 1 January 2000. The Committee considers the production of these statistics particularly important in view of the allegations made by the Confederation of Progressive Trade Unions of Turkey that it has not been possible to protect persons receiving periodical payments from the negative effects of the economic crisis and the high rate of inflation in the period from 1997 to 2001.

Finally, as regards the examples of the calculation of the amount of long-term benefits given in the 20th report on the ECSS, as well as in the report on the Convention, the Committee notes that these calculations have been established for an insured person without dependants who has completed different contributory periods (7.5 and 21 years). The Committee wishes to point out that, to comply with the methodology set out in the Convention, such calculations should: (1) refer not to a single beneficiary, but to the standard beneficiary, namely, a man with a wife of pensionable age for old-age benefit, a man with a wife and two children for invalidity benefits and a widow with two children for survivors’ benefit; (2) include the corresponding allowances for a dependent wife and children payable during employment, as well as during the contingency; and (3) be established for a beneficiary who has completed the qualifying period of contribution or employment authorized by the relevant provisions of the Convention (30 years for old-age benefit and 15 years for invalidity and survivors’ benefits).

Part XII (Equality of treatment of non-national residents), Article 68. In reply to the Committee’s previous comments, the Government refers to the information provided in the report submitted under Convention No. 118. The Committee would therefore also like the Government to refer to its observation concerning Convention No. 118.

[The Government is asked to reply in detail to the present comments in 2004.]

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With reference to its previous comments, the Committee notes the information provided by the Government in its report, in particular that relating to the accumulation of resources for the different insurance schemes and to the measures taken to ensure that they are administered properly (Part XIII (Common provisions), Articles 71 and 72, of the Convention). The Committee also notes the information provided by the Government in its 14th annual report on the application of the European Code of Social Security, also ratified by Turkey, together with the information in the appendix to this report. The Committee also notes the observations made by the Turkish Confederation of Employer Associations and the Confederation of Turkish Trade Unions supplied by the Government. The Committee wishes to draw the Government's attention to and to receive additional information on the following points:

Part XI (Standards to be complied with by periodical payments), Article 65 or 66 of the Convention (in relation to Articles 16, 28, 36, 50, 56 and 62).

1. As regards the review of the rates of current periodical payments for long-term benefits (Article 65, paragraph 10, or Article 66), the Committee notes the detailed information provided by the Government in its various reports on the application of the Convention and of the European Code of Social Security, and in particular the statistics relating to the changes in consumer prices. The Committee also notes the new revaluation coefficients adopted during the periods covered by the various reports. In this regard, the Committee observes that during the period from April 1996 to April 1997, the coefficient used to determine the increase in pensions rose from 1,695 to 3,315, i.e. an increase of 96 per cent. During the same period the increase in consumer prices was 77.2 per cent. The statistics supplied by the Government on the changes in the rates of minimum, average and maximum pensions also confirm that the increase in the cost of living was taken into account, although the rate of the social assistance benefits paid in addition to pensions, was not amended. In order to allow it to verify the manner in which the above-mentioned provisions of the Convention relating to the review of long-term benefits are applied, the Committee requests the Government to continue to provide all the necessary information, including the statistics reflecting the changes in the cost of living, in the coefficients and in social assistance benefits in the manner required by the report form under Article 65 (Title VI). The Committee also asks the Government to provide all these data for a single period of reference and to submit statistics on the changes in minimum, average and maximum pensions, on the one hand with, and on the other hand without, the assistance benefits.

Furthermore, the Committee wishes to observe that, despite a particularly high inflation rate, the coefficient for the adjustment of pensions was only increased once in 1996, while in 1995, a year when the inflation rate was comparable, it was increased three times. Consequently, the Committee expresses the hope that the Government will be able to re-examine the possibility of raising the coefficient for the adjustment of pensions at more regular intervals so as to limit the negative impact which any discrepancy between the readjustment of pensions and the increase in the cost of living inevitably has. The Committee requests the Government to indicate, in its next report, any developments in this respect.

2. As regards the rate of benefits, the Committee recalls that it requested the Government to provide, for each of the parts accepted, all the statistics required in the report form. In its report, the Government provides a very large amount of information on the rates of old-age, invalidity and survivors' pensions in terms of the levels and categories to which the beneficiaries belong, and on minimum and maximum pensions. The Government does not specify, however, the information requested on the rate of benefits paid to a typical beneficiary whose earnings are equal to the wage of a skilled manual male employee selected in accordance with Article 65, paragraph 6. As regards the wage paid to such an employee, the report on the Code refers to the results for Turkey of the survey conducted in October 1994 concerning the statistics on wages and number of working hours by occupation published in the special supplement of the 1996 ILO Bulletin of Labour Statistics, which are largely outdated given the inflation rate. The Committee considers that the fitter in the manufacture of machinery other than electrical machinery (heading No. 69 of the economic activities and occupations in the survey in question) could be considered as a skilled manual male employee, as defined in Article 65, paragraph 6(a), although the Government does not refer to it specifically. In this context, the Committee recalls that if, as is the case in Turkey, a maximum rate is prescribed for the earnings taken into consideration in the standards to be complied with by the benefit, the maximum rate should be fixed so that the rate of the benefits prescribed by the Convention is achieved in all cases where the previous earnings of the beneficiary (or his breadwinner) is lower than or equal to the wage of a skilled manual male employee. In the absence of statistics on a reference wage of this kind and on the rate of benefits paid to a typical beneficiary whose earnings are equal to the wage of the skilled manual male employee in question, the Committee is unable to determine whether the level of benefits in Turkey continues to correspond to the replacement rates established by the Convention. The Committee therefore again expresses the hope that the Government will ensure that its next report contains up-to-date information on the wage of the skilled manual male employee (who could for example be a fitter in the manufacture of machinery other than electrical machinery) selected in accordance with Article 65, paragraph 6(a), and on the rate of the benefits which such an employee or his dependants may claim for each of the contingencies arising from the parts of the Code accepted by Turkey for a single period of reference and in the manner required in the report form under Article 65 (Titles I-V). The Committee also recalls that, in establishing the above statistics, consideration must be given to the length of the qualifying periods provided for in respect of long-term benefits (i.e., according to the Convention, 30 years of contribution or employment for old age and 15 years, respectively, for invalidity and the death of the breadwinner, with the benefits paid in case of occupational injuries being allocated without a compulsory qualifying period).

In addition, the Committee asks the Government to continue to provide the following information: an up-to-date table containing the higher and lower indices together with the corresponding average wages; the wage for the years taken into account for the standards to be complied with by pensions and corresponding to the highest index, together with statistics relating to the changes in the coefficient.

Part XIV (Miscellaneous provisions), Article 76. The Committee asks the Government to provide, with its next report, statistics on the number of paid workers covered by the general employers' social security scheme in relation to the total number of wage-earners.

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Part XII of the Convention (Equality of treatment of non-national residents), Article 68. In reply to the Committee's comments concerning the affiliation of foreign workers to the employees' social security scheme established in Act No. 506, the Government refers to the information provided in its report on the application of Convention No. 118. Consequently, the Committee refers to the comments which it makes on this Convention. It hopes that the Government will be able to take the necessary measures to bring the formal provisions of Act No. 506 relating to social insurance for employees, and in particular section 3, paragraph 2(a), into conformity with the principle of equality of treatment established by this provision of the Convention so as to provide for the compulsory affiliation of foreigners to the employees' social insurance scheme under the same conditions as for nationals. The Committee hopes that the Government will be able to indicate, in its next report, the progress made in this regard.

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1. The Committee notes with interest the detailed information supplied by the Government in its report for the period 1988-92, and the appended documentation. It also notes the text, which was updated in 1990, of the Social Insurance Act, No. 506, which was supplied by the Government, in an English translation, as well as extracts of the Civil Servants Act, No. 657 and the Civil Servants' Pension Fund Act, No. 5434. It also notes with interest that Act No. 3774 of 20 February 1992 has eliminated, in certain cases, the age condition for entitlement to old-age pension.

2. With reference to its previous comments, the Committee wishes to draw the Government's attention to the following:

(a) Part XII of the Convention (Equality of treatment of non-residents), Article 68. The Committee pointed out that the provisions of section 3, subsections 1(g) and 2(a), of the Social Insurance Act, No. 506 - which excludes from insurance certain foreign residents and recognizes for such residents only the possibility of voluntary participation confined to invalidity, old-age and survivors' insurance - are not in conformity with the principle of equality of treatment set forth in the Convention. It therefore asked the Government to take the necessary steps to ensure that this principle was applied at least to nationals of member States that have accepted the same Parts of the Convention as Turkey and the obligation deriving from these Parts. In its report for 1984-88, the Government indicated that studies were being conducted with a view to introducing the necessary amendments to section 3 of the above-mentioned Act. In its last report the Government indicates that the purpose of the provisions of this section is not to exclude foreign workers residing in the country from insurance but to give them the opportunity to continue to be covered by insurance schemes in their own countries at least in respect of long-term benefits. The Government adds that the similar clauses are to be found in the European Code of Social Security, ratified by Turkey, and in the bilateral agreements that Turkey has concluded with Austria, Belgium, Denmark, France, Germany, Netherlands, Norway, Sweden, Switzerland and the United Kingdom. Furthermore, as regards immediate risks, foreign workers are covered by the insurance scheme provided for in Act No. 506.

The Committee takes note of this information and asks the Government to indicate under what provisions of the law or agreements foreign residents in temporary or permanent employment and who are nationals of a member State (other than those referred to above) that has accepted the obligations under the same Parts of the Convention as Turkey enjoy equality of treatment in respect of social security as provided for in the Convention, particularly with regard to immediate risks such as sickness, temporary incapacity owing to industrial accidents, and maternity.

(b) Part XIV (Miscellaneous provisions), Article 76. The Committee notes with interest from the detailed statistics provided by the Government on the number of persons covered by the various insurance schemes that the percentages required by Article 9, 15, 27, 33, 48, 55 and 61 of the Convention to determine the scope of the Parts accepted have now been achieved even taking into consideration only the general scheme for wage-earners envisaged under Act No. 506 (as well as the wage-earners by section 20 of the transitional measures of this Act), without it being necessary to take into consideration the other schemes applicable to public servants, self-employed workers, etc. As a consequence, the additional information requested with regard to the standards to be complied with by periodical payments (see paragraph 3 below) only need to be provided for the general scheme established under Act No. 506.

Furthermore, in calculating the percentages relating to scope, it is no longer necessary to take account of the temporary exceptions provided for in Articles 9(d) and 48(c) of the Convention, of which Turkey has availed itself of under Article 3, paragraph 1, of this instrument. The Committee hopes that the Government will continue to provide information in its future reports on any further progress made in this respect and that it might envisage renouncing its right to avail itself of the exceptions referred to above, in accordance with paragraph 2 of Article 3 of the Convention.

3. The Committee also asks the Government to provide additional information on the following points:

(a) Part XI (Standards to be complied with by periodical payments), Articles 65 or 66 of the Convention (in conjunction with Articles 16, 28, 36, 50, 56 and 62)

(i) The Committee notes the detailed statistical data provided by the Government in its report and in the annex to the report. It notes with interest that, in accordance with the method of calculating benefits set out in Act No. 506 and described by the Government, the percentages laid down by the Convention for the contingencies covered by the Parts that have been accepted could be achieved in several cases. According to this method of calculation, benefits are established as a function of an index representing average earnings over a number of years which is multiplied on the one hand by a coefficient determined by ministerial decision and, on the other hand, by the percentages laid down in the Act for each contingency. However, the examples provided in the Government's report differ from the method of calculating benefits laid down by the above-mentioned provisions of the Convention. Furthermore, the information does not make it possible to understand the formula according to which the index and the average wage which is used as a basis for the determination of this index are fixed. In these circumstances, the Committee asks the Government to provide in its next report statistics on the calculation of benefits established in the manner laid down in the report form on the Convention, in order to enable the Committee to confirm that the percentages set out in this instrument are achieved in each case. For these calculations, the Government could avail itself of either Article 65 or 66, in view of the fact that a minimum level of benefit also seems to be laid down in the national legislation. It would also be desirable for account to be taken, when compiling the above statistics, of the qualifying periods laid down, particularly for long-term benefits (in accordance with the Convention, 30 years of contribution or employment for old-age benefit and 15 years, respectively, for invalidity and the death of the family breadwinner; employment injury benefit must be provided without a qualifying period).

(ii) The Committee asks the Government to indicate the manner in which the table of lower and higher indices is established, as provided under section 61 of Act No. 506, which serve as a basis for the calculation of the benefits, as well as their relationship with the level of earnings on which the calculation is based.

(iii) The Committee notes the information concerning the readjustment of pensions, which is based on the coefficient determined by the Council of Ministers twice a year. In view of the impact of the particularly high level of inflation in Turkey on the general level of earnings and the fluctuation in the cost of living, the Committee considers that the review of the rates of benefits for old age, employment injury (except for temporary incapacity), invalidity and death of the breadwinner should continue to be given particular attention, especially in the present overall economic situation. The Committee hopes that the Government will continue to make every effort to ensure that full effect is given to paragraph 10 of Article 65 or paragraph 8 of Article 66 of the Convention and that it will continue to provide information in its future reports on progress made in this respect, including statistics of fluctuations in the wage index and consumer prices and changes in the coefficient. Please indicate also the method used to determine the coefficient.

(b) Part XIII (Common provisions). Articles 71 and 72. The Committee notes the information supplied by the Government concerning the constitution of the funds of the various insurance schemes and asks it to state what percentage of the funds come from employers' contributions, particularly in respect of the general scheme and the special schemes referred to in transitional section 20 of Act No. 506 of 1964.

The Committee also hopes that the Government will indicate the measures taken to ensure that the insurance schemes are properly administered, particularly as regards the provision of benefits and the payment of contributions.

4. The Committee takes due note of the comments made by the Turkish Confederation of Employer Associations and the Confederation of Turkish Trade Unions, supplied by the Government with its report.

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1. The Committee has examined the Government's reply to its previous comments and notes the information concerning the amount of the lump-sum benefits paid in the event of pregnancy and confinement to women who are themselves ensured or to the wives of insured men when the Social Insurance Institute is not in a position to provide the necessary medical care (Part VIII: Maternity benefit, Article 49, paragraph 2, of the Convention). The Committee also notes with interest from the documentation supplied with the report, the improvements to both the general and the various special social security schemes, provided for in the new legislation, and asks the Government to transmit, if possible, an English or French version of this legislation.

2. With regard to the other points raised in the above-mentioned comments, the Committee would like to point out the following:

Part XII (Equality of treatment), Article 68. The Committee pointed out that the provisions of section 3, subsections 1(g) and 2(a), of Act No. 506 of 1964 (which exclude from insurance certain foreign nationals and recognise for all these nationals only the possibility of voluntary participation confined to invalidity, old-age and survivors' insurance) are not in conformity with the principle of equality of treatment set forth in the Convention. It therefore asked the Government to take the necessary steps to ensure that this principle was applied, at least to nationals of member countries that have accepted the same Parts of the Convention as Turkey and the obligations deriving from these Parts.

In its last report, the Government indicates that studies are being conducted with a view to introducing the necessary amendments to section 3 of the above-mentioned Act and that the Office will be kept informed of any developments in this respect. The Committee takes note of this information and hopes that the next report will indicate any progress made in this regard.

Part XIV (Miscellaneous provisions), Article 76. The Committee has examined the statistical data provided in the report concerning the scope of insurance for all the Parts of the Convention that have been accepted. It notes that the percentage prescribed by Articles 9, 15, 27, 33, 48, 55 and 61 of this instrument (taking account of the fact that Turkey has availed itself of the temporary exceptions provided for in Articles 9(a) and 48(c) in respect of Parts II and VIII, by virtue of Article 3, paragraph 1, of the Convention) is only attained when account is also taken of civil servants who have their own scheme. The Committee therefore asks the Government to provide detailed information in its next report, on the way in which the provisions of the Parts of the Convention that have been accepted are applied to this class of employees and to supply the text of the relevant legislation (for example, Code No. 5434 issuing the conditions of employment of the public service and the legislation on the corresponding insurance scheme; an English or French version of these texts would be appreciated).

3. The Committee also noted the comments of the Turkish Confederation of Employers' Associations, transmitted with the Government's report.