Social policy refers to a set of public policies including collective solidarity mechanisms, regulatory legislation and several institutions. The period of 1945 to early 1970s was the golden age of social policy. Starting in the 1970s the age of Neo-liberalism changed the conventional social policy. Neo-liberalism is a modern interpretation of Adam Smith's economic philosophy. It advocates free trade, free markets, and labor market flexibility. Globalization has become a dominant issue in the age of Neo-liberalism. Neo-liberalism affected not only economic but also social policies since 1980's. During that period social policy reforms were carried out in many countries such as Sweden, Denmark, Norway, Australia, New Zealand, and Turkey. The Program for Transition to a Strong Economy began in May 2001. The Program has affected widespread and profound change in the Turkish economy and society. The PTSE has meant the transformation of the traditional social policy approach. New social policy approach had two main goals: labor market flexibility, and a sustainable pension system. The aim of this study is to analyze the transformation of social policy in Turkey during the 2000s. The paper is structured in four parts. The first part provides the transformation of social policy is assessed from the perspective of Neoliberal. In the next part, the effects of Neo-liberalism on social policy in Turkey are examined. Thirdly, the demographic, social and economic factors triggering the reforms in Turkey are investigated. In the last part, the transformation of social policy in Turkey during the 2000s analyzed in the context of labor market flexibility and social security reforms