Law No. 5510 on Social Insurance and General Health Insurance forms the core framework of the Turkish social security system.
For employers operating in Turkey, the law affects employee registration, social security contributions, payroll reporting, insured earnings and a wide range of ongoing SGK obligations.
This guide provides a practical overview of the areas international employers should understand when employing personnel in Turkey.
What is Law No. 5510?
Law No. 5510 provides the main legal framework for social insurance and general health insurance in Turkey. It establishes important responsibilities for employers in relation to workplace and employee registration, insured earnings, contribution reporting and ongoing compliance with the Social Security Institution, commonly known as SGK.
Employee Registration with SGK
Employers must correctly register insured employees with SGK and ensure that employment information is reported in line with the applicable rules. The correct process may depend on the employment arrangement and the employee's status, so each case should be reviewed before work begins.
Social Security Contributions in Turkey
Employer payroll obligations include calculating and reporting social security contributions based on applicable insured earnings and contribution rules. Payroll teams should use current official requirements when determining the treatment of each employee and payroll period. The English payroll calculator can support preliminary employment-cost calculations, while final payroll treatment should be confirmed against the rules in force.
Earnings Subject to Social Security Contributions
Not every payroll item is necessarily treated in the same way for social security purposes. The treatment of wages, bonuses, allowances, benefits and other payments should be reviewed under the applicable rules, with payroll records clearly supporting the approach taken.
Monthly Payroll and SGK Reporting
Payroll records and SGK reporting should be consistent. Differences between payroll calculations, reported insured earnings, employee records and accounting information may create compliance risks and should be identified and resolved promptly. Employers can also use the Tax, SGK and Filing Calendar to follow relevant filing and payment items.
Employee Termination and SGK Reporting
Termination of employment also creates SGK reporting obligations. The accuracy of termination dates, records and reporting codes can be important because they may affect both employer compliance and employee rights. The Severance and Notice Pay Calculator is available for preliminary calculations relating to employment termination.
Foreign Employees and Social Security in Turkey
Foreign employees working in Turkey may be subject to Turkish social security rules. However, international social security agreements, the employee's assignment structure and specific exemptions may affect the outcome. Employers should review the individual's position rather than assume that every foreign employee is automatically subject to SGK.
Employer Incentives and Social Security Discounts
Turkish legislation includes various employer incentive and contribution discount mechanisms. Availability depends on the current rules and the circumstances of the employer and employee. Eligibility should therefore be checked against official, up-to-date requirements before an incentive is applied. The site's employer incentives section contains related incentive information.
SGK Audits and Employer Risk
SGK may review employer records, payroll information, insured earnings, employee registrations and related compliance matters. A practical approach is to keep payroll, HR, accounting and SGK records aligned, document the treatment of material payroll items and correct identified differences in a timely manner.
Practical Checklist for International Employers
- Complete the required SGK workplace registration.
- Register employees for social insurance under the applicable rules.
- Keep payroll calculations and SGK reporting consistent.
- Review the social security treatment of wages, bonuses, allowances and benefits.
- Maintain accurate termination records and reporting.
- Assess the social security position of foreign employees individually.
- Check available employer incentives against current official requirements.
- Keep supporting records organised and ready for review.
This guide provides general information and does not replace advice based on the employer's current circumstances or the legislation in force.
Return to the English homepage