How much do employers pay in SGK social security contributions in Turkey?
Turkish employers pay SGK social security contributions of 22.5% of gross wages plus 2% unemployment insurance, totalling 24.5%. Employees contribute 15% plus 1% unemployment (16% total). On a TRY 30,000 gross salary, total employer cost is TRY 37,350/month. All contributions are capped at 7.5× the minimum wage (approximately TRY 165,780/month for 2025).
Detailed Explanation
Social security costs are among the most significant employment expenses in Turkey. Employers must understand both the statutory rates and the practical mechanics to budget accurately.
Employer SGK contribution breakdown Employers pay 22.5% of gross wages in social security: - Long-term insurance (uzun vadeli sigorta kolları — pension): 11% - Short-term insurance (kısa vadeli — work accident and occupational disease): approximately 2% (variable by workplace risk class; 1.5-2% is typical) - General health insurance (genel sağlık sigortası): 7.5% - Maternity and sickness (prime): 2%
Additionally, employers contribute 2% of gross wages to the Unemployment Insurance Fund (İşsizlik Sigortası Fonu).
Total employer social cost: 22.5% + 2% = 24.5% of gross wages.
Employee SGK contribution breakdown Employees contribute 15% of gross wages: - Long-term insurance: 9% - Short-term insurance: 1% - General health insurance: 5%
Plus 1% to the Unemployment Insurance Fund.
Total employee deduction: 16% of gross wages (deducted from gross pay before the employee receives net salary).
SGK earnings ceiling (SGK Tavan Ücreti) SGK contributions are capped at 7.5× the monthly minimum wage. For 2025 (first half), with the minimum wage at TRY 22,104/month: - SGK ceiling: approximately TRY 165,780/month
Above this ceiling, no further SGK contributions are due. For a highly paid director earning TRY 500,000/month, SGK contributions are calculated only on TRY 165,780 — not on the full TRY 500,000.
Minimum wage and SGK The minimum wage (Asgari Ücret) is reviewed twice annually (January and July) by the Minimum Wage Commission. For 2025 (first half): TRY 22,104 gross per month. The government provides a partial subsidy to employers covering a portion of the minimum wage employee's employer SGK contributions — reducing the actual cost below the statutory 24.5% for minimum wage employees.
Real-world total employment cost examples (2025 H1) - Minimum wage employee (TRY 22,104 gross): Employer SGK = TRY 5,416 (24.5%). Total monthly cost = TRY 27,520. Take-home pay = TRY 17,002 (after employee SGK 16% and income tax withholding). - Mid-level employee (TRY 80,000 gross): Employer SGK = TRY 19,600 (24.5%). Total monthly cost = TRY 99,600. Employee Gelir Vergisi withholding depends on cumulative annual earnings. - Senior employee at SGK ceiling (TRY 200,000 gross): Employer SGK = TRY 40,617 (on TRY 165,780 ceiling only). Total monthly cost = TRY 240,617.
Monthly declaration and payment Employers must: 1. File the combined Muhtasar ve Prim Hizmet Beyannamesi by the 26th of the following month, reporting all insured employees, working days, and earnings 2. Pay both employer and employee SGK contributions to SGK by the 26th 3. Pay withheld Gelir Vergisi (Stopaj) to the Revenue Administration separately
New employees must be registered with SGK via Sigortalı İşe Giriş Bildirimi before their first working day — late registration triggers penalties of 1x minimum wage per employee per month.
Severance and notice obligations Turkey's İş Kanunu (Labour Code) requires severance pay (Kıdem Tazminatı) for employees dismissed without valid cause or resigning for specified reasons, calculated at 30 days' gross wage per year of service, capped at TRY 45,022.21 per year of service (2025 limit). These are not SGK contributions but represent a significant additional employment cost for long-tenured staff.
Source: https://www.sgk.gov.tr/mevzuat
Real-World Examples
Small team of 3 employees
Three employees at TRY 40,000, TRY 60,000, and TRY 100,000 gross monthly. Combined employer SGK: (40,000 + 60,000 + 100,000) × 24.5% = TRY 49,000/month in employer social contributions alone.
Owner-director Mudur fees vs salary
A sole-shareholder Ltd. Sti. owner paying themselves TRY 100,000/month as Mudur fee structured as serbest meslek: subject to 20% Stopaj (Gelir Vergisi) but not SGK — potential social security gap but also lower total employer cost compared to formal employment.
Common Mistakes to Avoid
- Forgetting to register employees with SGK before their first day — the penalty is 1× minimum wage per unregistered employee per month
- Not accounting for the SGK ceiling when budgeting for senior hires — SGK costs plateau at the TRY 165,780 ceiling, making very high earners proportionally cheaper in social costs
- Treating Kıdem Tazminatı (severance) as an optional benefit — it is a statutory legal obligation for dismissed employees with 1+ year of service
Frequently Asked Questions
Do owner-directors of a Limited Sirketi pay SGK?
Yes. The Mudur (manager-director) who is also a shareholder in a Limited Sirketi is treated as a Bag-Kur (self-employed) SGK contributor, not an employee. They pay both employer and employee SGK contributions themselves (total approximately 34.5% of declared earnings) rather than splitting contributions with the company.
Practical Tips
- Model your total headcount cost as 1.245x gross salary for budgeting — this covers employer SGK and unemployment contributions
- Review your workplace risk class (İş Kolu Kodu) annually — the short-term insurance rate varies by sector and incorrect classification results in overpayment or underpayment
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