# How much do employers pay in SGK social security contributions in Turkey? Last updated: 1 June 2026 Country: Turkey Category: employment **Quick answer:** Turkish employers pay SGK contributions totalling 23.75% of gross wages from 1 January 2026 (21.75% social security plus 2% unemployment insurance). Employees contribute 15% (14% social security plus 1% unemployment). On a TRY 30,000 gross salary, total employer cost is TRY 37,125/month. All contributions are capped at 9× the minimum wage (Law No. 7566). ## 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 21.75% of gross wages in social security from 1 January 2026: - Disability, old age and death insurance (pension): 12% - Short-term insurance (kısa vadeli, work accident and occupational disease): 2.25% (standard rate, varies by workplace hazard class) - General health insurance (genel sağlık sigortası): 7.5% Additionally, employers contribute 2% of gross wages to the Unemployment Insurance Fund (İşsizlik Sigortası Fonu). Total employer social cost: 21.75% + 2% = 23.75% of gross wages, before any employer incentive. **Employee SGK contribution breakdown** Employees contribute 15% of gross wages: - Long-term insurance: 9% - General health insurance: 5% - Unemployment Insurance Fund: 1% Total employee deduction: 15% of gross wages (deducted from gross pay before the employee receives net salary). **SGK earnings ceiling (SGK Tavan Ücreti)** SGK contributions are capped at 9× the monthly minimum wage from 1 January 2026 (Law No. 7566; it was 7.5× before). Above this ceiling, no further SGK contributions are due. For a highly paid director earning far above the ceiling, SGK contributions are calculated only on the ceiling amount, not on the full salary. **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 23.75% for qualifying employees. **Worked examples (2026 rates, before employer incentives)** - Employee at TRY 30,000 gross: Employer SGK = TRY 7,125 (23.75%). Total monthly cost = TRY 37,125. - Mid-level employee (TRY 80,000 gross): Employer SGK = TRY 19,000 (23.75%). Total monthly cost = TRY 99,000. Employee Gelir Vergisi withholding depends on cumulative annual earnings. **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) × 23.75% = TRY 47,500/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 ## Related questions - [What is the corporate tax rate in Turkey for 2025?](https://accounts-os.com/tr/questions/turkey-corporate-tax-rate-tr) - [What is the difference between a Limited Sirketi and Anonim Sirketi in Turkey?](https://accounts-os.com/tr/questions/turkey-limited-vs-anonim-tr) - [What are the withholding tax rates in Turkey for dividends, royalties, and services?](https://accounts-os.com/tr/questions/turkey-withholding-tax-rates-tr)