What is SGK (Sosyal Guvenlik Kurumu)?
SGK (Sosyal Guvenlik Kurumu) is Turkey's Social Security Institution responsible for collecting social insurance premiums from employers and employees covering health insurance, pension, and unemployment. Total employer social security contributions are approximately 22.5% of gross wages, with employees contributing 15%. Employers also pay 2% for unemployment insurance.
Current Rate (2025)
Employer: 22.5% (social security) + 2% (unemployment) = 24.5% total on gross wages, subject to ceiling. Employee: 15% (social security) + 1% (unemployment) = 16%. Combined social cost: ~40.5% on gross wages up to the ceiling.
Example
An Istanbul employer pays a monthly gross wage of TRY 30,000. Employer SGK cost: TRY 30,000 × 24.5% = TRY 7,350. Employee deduction: TRY 30,000 × 16% = TRY 4,800. Total employment cost to employer: TRY 37,350 per month for a TRY 30,000 gross role.
How SGK (Sosyal Guvenlik Kurumu) works in Turkey
SGK is Turkey's unified social security system created in 2006 by merging three previously separate institutions (SSK, Bag-Kur, and Emekli Sandigi) under Social Security and General Health Insurance Law No. 5510. It administers pension, health insurance, work accident, and unemployment coverage.\n\n**Contribution breakdown (employer)**\nThe employer's total social security contribution is 22.5% of gross wages:\n- Long-term insurance (pension): 11%\n- Short-term insurance (work accident, occupational disease): 2% (variable by risk class, typically 2%)\n- General health insurance: 7.5%\n- Maternity and sickness: 2%\nAdditionally, employers pay 2% of gross wages to the Unemployment Insurance Fund (Isizlik Sigortası Fonu).\n\n**Contribution breakdown (employee)**\nEmployees contribute 15% of gross wages:\n- Long-term insurance: 9%\n- Short-term insurance: 1%\n- General health insurance: 5%\nPlus 1% unemployment insurance. Total employee contribution: 16%.\n\n**SGK earnings ceiling**\nContributions apply only up to the monthly SGK ceiling (SGK Tavan Ucret). The ceiling is set at 7.5x the minimum wage (Asgari Ucret). For 2025, with the minimum wage at TRY 22,104/month, the SGK ceiling is approximately TRY 165,780/month. Above this ceiling, no further SGK contributions are due, so high earners' total employment cost percentage is effectively lower.\n\n**Minimum wage impact**\nTurkey's minimum wage is set twice annually (January and July) by the Minimum Wage Commission. The employer must ensure total gross wages are at or above the minimum wage. For 2025 (first half), the minimum wage is TRY 22,104 gross. Employers are partially reimbursed for minimum wage SGK costs through a government subsidy that has operated since 2016.\n\n**Monthly SGK declarations**\nEmployers must file monthly SGK Aylik Prim ve Hizmet Belgesi declarations through the SGK e-Bildirge portal, reporting all insured employees, their working days, and their earnings. This declaration triggers payment of both employer and employee contributions, with the employer responsible for deducting and remitting the employee share from payroll. Declarations are due by the 23rd of the following month; payments are due by the 26th.\n\n**Penalties**\nFailing to register an employee with SGK (kaçak isci) carries severe penalties including 10x the minimum wage per unregistered employee per month, disqualification from state tenders, and back-payment of all unpaid premiums with interest. SGK also conducts workplace inspections with significant fines for non-compliance.
Related terms
Gelir Vergisi is Turkey's personal income tax applying to individuals on seven categories of income: employment, business, agricultural, self-employment, immovable property, movable capital, and other income. For 2025, rates range from 15% (up to TRY 158,000) to 40% (above TRY 880,000), with an additional 45% bracket applicable to employment income above TRY 4,300,000.
Stopaj Vergisi (withholding tax) is a mechanism under which the payer deducts income tax at source before making payments to the recipient. In Turkey, employers withhold Gelir Vergisi from salaries, companies withhold tax on dividends (15%), professional fees (20%), rental payments (20%), and certain other payments. The payer remits the withheld amount to the tax authority via the Muhtasar Beyanname.
Muhasebe is the Turkish word for accounting. Under Turkish law, all commercial enterprises must maintain accounting records conforming to the Tek Duzen Hesap Plani (Uniform Chart of Accounts) prescribed by the Ministry of Finance. Accounting records must be prepared on an accrual basis, kept for 5 years, and be accessible to tax inspectors on demand. Licensed accountants (SMMM or YMM) must sign most business tax declarations.
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