View of the Premium Erosion Problem in The Turkish Social Security System

One of the most important problems of social security systems is financial deficits. The financial deficit means that the collected premium revenues are less than the social security expenditures. There are many reasons for insufficient premium income. One of these reasons is premium erosion. The concept of premium erosion generally refersto the erosion and loss of premiums due to informal employment, avoidance of premiums and premium expenditures. The concept of premium kidnapping actually coincides with the concept of informal employment. Informal employment is the employment without informing the social security institutions and fulfilling the necessary obligations. Premium expenditures include restructuring, incentives, discounts, exemptions and exceptions. However, it is not correct to say that these practices directly cause premium erosion. In order to talk about erosion, the application must exceed its purpose, deviate from the desired target and cannot be controlled.