Turkish Social Security Requirements for Employers in 2026

Türkiye offers a dynamic and attractive business environment for both local and foreign investors. However, employers operating in Türkiye must strictly comply with Turkish Social Security legislation, which is one of the most regulated and closely monitored areas of employment law. Failure to meet these obligations may result in significant administrative fines, retrospective liabilities, and even criminal exposure for company directors.

As Finlexia Turkish Accounting Firm, a leading Istanbul-based corporate and employment firm providing company formation and governance services in multiple languages since 2017, we regularly advise employers on Turkish Social Security compliance. Our corporate lawyers team provides a detailed, up-to-date overview of Turkish Social Security requirements for employers in 2026.

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Turkish employers face mandatory Social Security Institution (SGK) obligations to ensure employee coverage for pensions, health, and unemployment. Non-compliance risks hefty fines and legal issues.

New businesses must register with SGK immediately after company formation in Türkiye. Submit the employer application form, tax number, and company documents to the local SGK office. Processing takes up to five days, yielding a unique employer registration number essential for all contributions.

Overview of the Turkish Social Security System (SGK)

The Turkish Social Security system is administered by the Social Security Institution (Sosyal Güvenlik Kurumu – SGK). SGK consolidates social insurance schemes covering:

• Retirement and disability pensions
• Health insurance
• Work accident and occupational disease coverage
• Maternity and sickness benefits
• Unemployment insurance (administered jointly with İŞKUR)

All employers, regardless of nationality or sector, are subject to SGK obligations once they employ personnel in Türkiye.

Mandatory Employer Registration with SGK

Before hiring employees, employers must register with SGK as a workplace. Registration is mandatory for:

• Turkish companies
• Foreign-owned companies
• Branches and liaison offices
• Representative offices employing Turkish nationals

Workplace registration must be completed before the first employee starts work. This obligation applies whether the business is established as a joint-stock company or a limited liability company, or any other legal form.

Failure to register a workplace on time leads to administrative fines and increased scrutiny by SGK inspectors.

Employee Registration and Onboarding Requirements

Each employee must be registered with SGK at least one day before their employment begins. This applies to:

• Turkish citizens
• Foreign nationals with valid work permits
• Part-time and full-time employees

Employers must submit the employee’s Social Security Employment Declaration electronically through the SGK system.

Late or missing employee registrations are considered undeclared employment, one of the most heavily penalized violations under Turkish labor law.

Social Security Contribution Rates in Türkiye (2026)

Social Security premiums are calculated based on the employee’s gross salary, subject to statutory minimum and maximum contribution bases.

Standard Contribution Breakdown

Employer Contributions (approximately 22.5%)

• Social Security premium: 20.5%
• Unemployment insurance: 2%

Employee Contributions (approximately 15%)

• Social Security premium: 14%
• Unemployment insurance: 1%

Although employee contributions are deducted from salary, employers are fully responsible for accurate calculation, declaration, and payment to SGK.

Monthly Declarations and Payment Obligations

Employers must submit Monthly Premium and Service Declarations (MUHSGK) to SGK by the 26th day of the following month. These declarations include:

• Employee salaries
• Working days
• Premium calculation bases
• Tax-related information

Social Security premiums must be paid by the same deadline. Late payments result in default interest, penalties, and possible enforcement proceedings.

Work Accidents and Occupational Disease Reporting

Employers are legally required to report:

• Work accidents within three working days
• Occupational diseases immediately upon diagnosis

Failure to report incidents on time may result in severe financial penalties and loss of SGK coverage for related benefits. Additionally, employers may be held liable for compensation claims filed by employees.

Health and Safety Obligations Linked to SGK

SGK compliance is closely tied to occupational health and safety (OHS) obligations. Employers must:

• Register with authorized OHS service providers
• Conduct risk assessments
• Appoint workplace physicians and safety specialists
• Maintain training and incident records

Non-compliance may trigger joint penalties from both SGK and the Ministry of Labor and Social Security.

Social Security Incentives and Premium Discounts

To encourage employment, Türkiye offers various SGK incentives, including:

• Five-point employer premium reduction
• Youth and female employment incentives
• Incentives for R&D and technology companies
• Regional investment incentives

These incentives can significantly reduce employer costs but require strict procedural compliance. Incorrect application may lead to retrospective cancellation and repayment with interest.

Special Rules for Foreign Employees

Foreign employees must have a valid work permit, which also serves as their SGK registration. Employers must:

• Register foreign employees with SGK within 30 days of work permit issuance
• Pay Social Security premiums at the same rates as Turkish employees
• Ensure consistency between work permit, payroll, and SGK records

Failure to comply may result in fines, work permit cancellation, and deportation risks for the employee.

SGK Audits and Employer Inspections

SGK conducts both routine and complaint-based inspections. Inspectors typically review:

• Payroll records
• Employment contracts
• Bank salary payments
• SGK declarations
• Overtime and working time records

Undeclared employment, underreported salaries, and misclassification of employees are among the most common violations identified during audits.

Importance of Proper Corporate Structuring

Social Security compliance is directly influenced by how a business is structured and governed. Companies established with improper governance frameworks often face recurring SGK issues.

Engaging experienced company formation lawyers during incorporation ensures that employment and Social Security obligations are addressed from the outset. This is particularly critical during company formation in Türkiye, where early mistakes can lead to long-term compliance risks.

Employer Liability and Director Responsibility

Under Turkish law, company directors and authorized signatories may be held personally liable for unpaid Social Security premiums. This risk applies equally to shareholders and managers of a limited liability company, depending on governance structure and authority allocation.

Proper internal controls, accurate payroll systems, and continuous legal oversight are essential to mitigate personal and corporate exposure.

How Finlexia CPA Supports Employers

At Finlexia Turkish Accounting Firm, we provide comprehensive legal support for:

• SGK workplace and employee registrations
• Payroll and premium compliance reviews
• SGK audit defense and dispute resolution
• Foreign employee Social Security compliance
• Corporate governance and risk management

Our integrated approach ensures that Social Security compliance aligns seamlessly with broader employment and corporate law obligations.

Contact us for Turkish Social Security Requirements

If you are planning to establish a new entity or need to audit your current social security compliance, our team is ready to assist. Ensuring that your joint-stock company
or limited liability company meets the 2026 standards is our priority.

Navigating Turkish Social Security requirements demands precision, experience, and proactive legal strategy. To ensure full compliance and protect your business from unnecessary risks, we invite you to contact Finlexia Turkish Accounting Firm. Our multilingual team of experienced lawyers in Istanbul is ready to assist you with all aspects of Turkish employment and Social Security law.