# What is SGK (Sosyal Guvenlik Kurumu)?

Country: Turkey

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 23.75% of gross wages from 1 January 2026 (including 2% unemployment insurance), with employees contributing 15%.

## Current rate (2026)

Employer: 21.75% (social security) + 2% (unemployment) = 23.75% total on gross wages, subject to ceiling. Employee: 14% (social security) + 1% (unemployment) = 15%. Combined social cost: 38.75% 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 × 23.75% = TRY 7,125. Employee deduction: TRY 30,000 × 15% = TRY 4,500. Total employment cost to employer: TRY 37,125 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 contribution is 23.75% of gross wages from 1 January 2026:\n- Disability, old age and death insurance (pension): 12%\n- Short-term insurance (work accident, occupational disease): 2.25% (standard rate, varies by hazard class)\n- General health insurance: 7.5%\n- Unemployment insurance (Isizlik Sigortası Fonu): 2%\n\n**Contribution breakdown (employee)**\nEmployees contribute 15% of gross wages:\n- Long-term insurance: 9%\n- General health insurance: 5%\n- Unemployment insurance: 1%\nTotal employee contribution: 15%.\n\n**SGK earnings ceiling**\nContributions apply only up to the monthly SGK ceiling (SGK Tavan Ucret). The ceiling is set at 9x the minimum wage (Asgari Ucret) from 1 January 2026 (Law No. 7566, previously 7.5x). 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.

Source: https://www.sgk.gov.tr/mevzuat

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