The social security in Turkmenistan is regulated by a law of 2007, which provides for a social insurance and social assistance system.
The social insurance system covers all employed and self-employed persons, while the social assistance system covers all those persons that are not eligible for benefits under the social insurance system.
Funds are contributed by both the insured person and the employer in the following proportions: (i) Insured person: 1% of all earnings; and (ii) Employer: 20% of payroll. For certain employers, the contribution varies according to sector. In case of self-employed persons, the contribution is of 1% of all earnings. The government makes subsidies as needed and finances the total cost of social allowances. Further, local governments and employers may provide supplementary benefits from their own budgets.
The old-age pension (social insurance) is paid at age 62 if the insured person has at least 25 years of covered employment in case of men, or at age 57 if the insured person has at least 20 years of covered employment in case of women. The age and number of years of covered employment required for a full pension are reduced for mothers with three or more children and for children with disabilities. A minimum pension is paid for insured persons with at least 5 years of covered employment.
In case of military personnel, the benefit is payable at age 52 in case of men or at age 48 in case of women. For pilots and flight crew, the benefit is payable at age 50 in case of men or at age 48 in case of women.
The social pension is available at age 62 in case of men or at age 57 in case of women, to those who are not eligible for the old-age pension.
The old-age pension consists of a monthly payment of 2.5% for each year of covered employment of an amount based on gross monthly national average earnings in the last quarter before retirement, a personal pension coefficient, and the number of years of covered employment. The personal pension coefficient is the ratio of assessed earnings to gross national average earnings. Assessed earnings are the person’s gross average earnings during the best 5 consecutive years of covered employment. Gross national average earnings are based on the years of covered employment used to calculate assessed earnings.
Benefits are adjusted periodically according to changes in the national average wage.
The social pension is 70% of the minimum old-age pension. The benefit is paid on a monthly basis.
The system is administered by the Ministry of Social Security (http://www.socialsecurity.gov.tm), that provides general coordination and supervision. Regional and local social security departments administer the program
Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/index.html