New Veterans and Disability Compensation Law: A Fiscal Upswing

The changes to the Turkish Republic Pension Fund Law, effective September 1, 2026, stipulate that all disability benefits must be no less than the net value of the minimum wage. This amendment increases the pension for veterans and disabled personnel to 2.5 times the net minimum wage, and establishes new index figures for grades 4‑6.

New Legal Framework: Enhanced Guarantees for Veterans

■Minimum wage net amount as the baseline for all disability benefits

■Replacement of the 2× net minimum wage with 2.5× for disabled veterans

■New index figures for grades 4‑6: 27 288, 25 385, 23 485, 21 578, 19 673, 17 820

■Inclusion of injuries from the 15 July coup attempt in the new calculation

Fiscal Impact: Rising Government Expenditure

■Monthly payments calculated by multiplying 17 135 index figure by the civil servant monthly coefficient

■Payments collected from the Treasury within two months upon invoice

■Other social benefits under Law 1005 remain protected

Scope and Implementation Timeline

■The amendment applies once to events before its enactment

■Applications must be submitted within one year from the effective date

■Past events are excluded from the new provisions

Sectoral Effects: Armed Forces and Security Personnel

■Coverage extended to the Turkish Armed Forces, Gendarmerie, Coast Guard, and National Intelligence Organization

■New payment levels for non-commissioned officers, soldiers, security guards, and military students

Summary and Key Points

■Monthly benefits for all veterans increased to 2.5× the net minimum wage

■Grade‑based index figures vary from 2 100 to 3 600

■Injured personnel from the 15 July coup are now eligible for updated payments

Caner Yılmaz: This law will increase the visible social spending of the state while simultaneously boosting the morale of military personnel. In the short term, it is expected to add a 3‑5% burden to the government budget. Market participants may see slight volatility in budget forecasts and debt metrics. In the long run, higher defense spending could positively influence the stock prices of defense and security firms within the BIST 100 index.