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SOCIAL SECURITY SYSTEM
The social security system in Türkiye underwent a significant transformation process in 2007. As a result of this process, different social security funds were consolidated under a single institution, the Social Security Institution (SGK), to be centrally supervised and operated for enhanced efficiency and speed. Three separate social security institutions, namely SSK (Social Insurance Institution), Bağ-Kur (Social Insurance for Artisans and Self-Employed), and Emekli Sandığı (Pension Fund – for public servants and certain government employees) were merged under the name of SGK in 2007. The new system started to fully function from the beginning of 2008. As of April this year, the total number of insured individuals in Türkiye reached 24.944.475.[1]
The Turkish Social Security System is governed by Law No. 5510 on Social Insurance and General Health Insurance.[2] This comprehensive law outlines the rules and regulations for social insurance and healthcare coverage in Türkiye. It establishes the rights and obligations of employees, employers, and the Social Security Institution (SGK) in providing social security benefits and services to the working population. The law covers various aspects, including retirement benefits, disability pensions, unemployment benefits, health insurance, maternity benefits, and more. It aims to ensure the well-being and protection of employees and their families, promoting social security and stability throughout the country.
The individuals considered insured are categorized into three groups in Law No. 5510. The first paragraph of Article 4 of Law No. 5510 brings together different categories of insured individuals falling under both long-term and short-term insurance coverage.
Under 4/a coverage, this includes individuals employed under an employment contract, temporary personnel in public institutions, contracted personnel without the right to retirement, those employed for extra duties, master instructors, beneficiaries of the public benefit employment program, and artists and writers.
Under 4/b coverage, the insured individuals consist of village headmen, self-employed individuals, jockeys, and trainers subject to the Law on Horse Races, and individuals engaged in agricultural activities (self-employed).
Under 4/c coverage, the insured individuals include civil servants working in public administrations, other public officials with similar retirement rights to civil servants, individuals appointed as deputy to vacant civil servant positions, Prime Minister, ministers, Members of the Grand National Assembly of Türkiye (TBMM), mayors, and members of permanent provincial commissions, students studying on behalf of the Turkish Armed Forces (TSK) and General Directorate of Security (EGM) at military schools, police academy, faculties, and higher schools, and presidents and board members of public officials’ unions and confederations (those on unpaid leave).[3]
INSURANCE BRANCHES UNDER TURKISH SOCIAL SECURITY SYSTEM
Social security premiums (calculated as a certain percentage of the employee’s gross earnings) can be paid by both the employer and the employee. Under employment relations, both employers and employees contribute to the four distinct insurance branches of the Turkish Social Security System, each serving a specific purpose. These contributions fund the system, enabling it to provide various social security benefits and protections to employees in Türkiye.
Short Term Insurance Branch Premium:
This premium is used to cover short-term insurance benefits for employees. Short-term insurance benefits include payments for sick leave, maternity leave, workplace accidents, and work-related illnesses. In the cases of work accidents, occupational diseases, illness, and maternity risks, health and care assistance are provided under General Health Insurance, while financial assistance is provided under Short-Term Insurance Branches.[4] The employer solely covers this premium, and the employee does not have any deductions from their salary for this specific branch. The allocation for Short Term Insurance Branch Premium is 2% of the total allocation.
Long Term Insurance Branch Premium (Invalidity, Old Age, and Death Insurance Premium):
This premium is a crucial part of the social security system in Türkiye and is allocated to provide coverage for invalidity, old age pensions, and death benefits. Both the employer and the employee contribute to this premium. The employer’s allocation is 9% of the total allocation, and the employee’s allocation is 11%. When combined, it makes a total of 20% of the total allocation that goes towards this insurance branch.
General Health Insurance:
General health insurance is defined in Law No. 5510 as insurance that primarily aims to protect individuals’ health and, in the event of encountering health risks, provides financing for the resulting expenses. Both the employer and the employee contribute to this premium. The employer allocates 5% of the total allocation, and the employee allocates 7.5%. Together, this makes up 12.5% of the total allocation.
Unemployment Insurance:
The unemployment insurance premium is aimed at providing financial support to employees who become unemployed. Both the employer and the employee contribute to this premium. The employer’s allocation is 1% of the total allocation, and the employee’s allocation is 2%. The combined total for this premium is 3% of the total allocation.
The “Total Allocation” indicates the overall percentage of the employee’s gross salary that goes towards the social security system in Türkiye. In this case, the sum of the percentages allocated to all the premiums (Short Term Insurance, Invalidity, Old Age and Death Insurance, General Health Insurance, and Unemployment Insurance) is 37.5% of the total allocation.
Table 1: Insurance Branches and Allocations
| Insurance Branches | Employee’s Allocation (%) | Employee’s Allocation (%) | Total Allocation (%) |
| Short Term Insurance Branch Premium | – | 2 | 2 |
| Invalidity, Old Age and Death Insurance Premium | 9 | 11 | 20 |
| General Health Insurance | 5 | 7,5 | 12,5 |
| Unemployment Insurance | 1 | 2 | 3 |
| Total | 15 | 22,5 | 37,5 |
Table 2: Social Security Premium Base & Ceiling Amounts
| SOCIAL SECURITY BASE AND CEILING | MONTHLY (TL) |
| BASE (01 July 2023 – 31 Dec 2023) | 13,414.50 |
| CEILING (01 July 2023 – 31 Dec 2023) Base (x) 7.5 | 100,608.75 |
ALLOWANCES EXEMPTED FROM SOCIAL SECURITY PREMIUMS
According to Subparagraph (b) of Paragraph (1) of Article 80 of Law No. 5510, certain payments and allowances are exempted from social security contributions. These exemptions cover various items, such as in-kind allowances, death, birth, and marriage allowances, business travel expenses, itinerant duty compensation, severance pay, lump-sum payments for the end of employment or severance pay, discovery fees, notice, and cash compensation. Additionally, meal, child, and family allowances, as well as employer contributions for private health insurance and individual retirement systems, are exempt from contributions based on earnings, provided that the total monthly amount does not exceed the determined limit.
The provisions regarding partially exempted payments from social security contributions are stated in the first subparagraph (b) of Article 80 of Law No. 5510 and in Articles 7 and 8 of the Social Insurance Procedures Regulation.[5] Below is a table outlining various allowance and contribution amounts that are exempted from social security contributions for the second half of 2023. Amounts exceeding the limits provided below will be subject to SGK premiums.
Table 3: Allowances (2023) Partially Exempted from Social Security Premium
| ALLOWANCES AND CONTRIBUTIONS (2023) | 01 JULY- 31 DEC. | CALCULATION |
| Meal allowance (per working day) | 105,75 TL | 23.65% of the daily gross minimum wage* is exempted from the earnings subject to SGK premium. |
| Child allowance (per child, up to two children, monthly) | 268,29 TL | 2% of the monthly gross minimum wage is exempted from the earnings subject to SGK premium. |
| Family allowance (monthly) | 1.341,45 TL | 10% of the monthly gross minimum wage is exempted from the earnings subject to SGK premium. |
| Premiums and contributions paid by the employer for private health insurance and individual retirement system for insured individuals. | 4.024,35 TL | 30% of the monthly gross minimum wage is exempted from the earnings subject to SGK premium. |
* The daily gross minimum wage is 447.15 TL.
SOCIAL SECURITY REGISTRATION DEADLINES FOR FOREIGN EMPLOYEES
In accordance with Article 25 of the Implementation Regulation of the International Labor Law, for work permit applications made within the country, the foreigner is required to commence working within one month from the starting date of the work permit while fulfilling the corresponding social security obligations. Similarly, for applications made from abroad, the foreigner must begin working within one month from the date of entry into the country, ensuring compliance with social security obligations. Furthermore, as stated in Article 12/2 of Law No. 6735, foreign nationals granted a work permit based on an application made from abroad must arrive in Türkiye within six months from the starting date of the work permit’s validity. Failure to meet this requirement will result in the cancellation of the work permit. In the event that the date of work permit issuance differs from the notification date to the employer, a prompt notification to the Social Security Institution, within one month from the date of employer notification, will be deemed timely.[6]
SOCIAL SECURITY COVERAGE FOR FOREIGN EMPLOYEES
According to sub-paragraph (c) of Article 4 of the Law No. 5510 on Social Insurance and General Health Insurance, foreign national employees working under an employment contract, with the exception of nationals from countries that have an international social security agreement with Türkiye, are considered insured in Türkiye.
On the other hand, in line with sub-paragraph (e) of Article 6 of the Law no. 5510, individuals who are sent to Türkiye for a job lasting no more than three months by any organization established in a foreign country, and can provide certification of their social security coverage in that foreign country, along with those who work independently on their own behalf and account in Türkiye while residing abroad, are not considered insured in Türkiye.
For foreigners from countries with which Türkiye has an international social security agreement, who are sent to Türkiye by their employer from the contracting country or who come to work independently, and subject to having a valid work permit, are exempt from social security obligations in Türkiye for the periods specified in the agreements.
The specific duration and their extension periods are determined by the terms of the bilateral and multi-national social security agreements. The table below presents the bilateral agreements between Türkiye and various contracting parties[7], outlining the duration of exemption and their extension periods.
Table 4: International Social Security Agreements
| Contracting Party | Duration of Exemption | Extension Period |
| 1- United Kingdom | During the duration of secondment, the legislation of the country registered is applied. | |
| 2- Federal Republic of Germany | (5) five years | (3) three years |
| 3- Netherlands | (24) twenty-four months | As agreed, |
| 4- Belgium | (24) twenty-four months | As agreed, (in practice, limited with (60) sixty months) |
| 5- Austria | (24) twenty-four months | As agreed, |
| 6- Switzerland | (24) twenty-four months | As agreed, |
| 7- France | (3) three years | As agreed, (in practice, limited with (6) six years) |
| 8- Denmark | (12) twelve months | Until the completion of task (on condition of agreement) |
| 9- Sweden | (12) twelve months | (12) twelve months |
| 10- Norway | (12) twelve months | As agreed, |
| 11- Libya | After September 01, 1985, constant temporary employee application | |
| 12- Turkish Republic of North- ern Cyprus | (24) twenty-four months | As agreed, |
| 13- Macedonia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 14- Azerbaijan | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 15- Romania | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 16- Georgia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 17- Bosnia-Herzegovina | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 18- Canada | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 19- Quebec | (60) sixty months | As agreed, |
| 20- Czech Republic | (24) twenty-four months | As agreed, |
| 21- Albania | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 22- Luxembourg | (12) twelve months | (12) twelve months |
| 23- Italy | (12) twelve months | As agreed, |
| 24- Croatia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 25- Slovakia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 26- Serbia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 27- South Korea | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 28- Montenegro | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 29- Tunisia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 30- Hungary | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 31- Iran | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 32- Moldova | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 32- Poland | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 34- Mongolia | (24) twenty-four months |
Can be extended up to (60) sixty months |
| 35- Kyrgyzstan | (24) twenty-four months |
Can be extended up to (60) sixty months |
In addition to bilateral social security agreements, Türkiye is also a signatory to the European Convention on Social Security (Paris, 14.12.1972). For foreign employees who are assigned from a member state of the European Convention on Social Security, the maximum duration of exemption from Turkish social security obligations is limited to 12 months. During this period, foreign employees may continue to be subject to the social security scheme of their home country upon providing confirmation of their social security coverage.
However, if the assignment period exceeds 12 months, unless otherwise agreed by the Turkish social security institution, the foreign employee will become subject to the Turkish social security scheme.
In the event that a foreign employee temporarily assigned from a country where Türkiye has no social security agreement, they will be subject to the social security scheme of their origin country for a duration of three (3) months, provided that they can provide confirmation of their social security coverage in their home country.[8]
SOCIAL SECURITY BENEFITS AND ENTITLEMENTS FOR FOREIGN EMPLOYEES
Once foreign employees start working and the employee social security entry declaration is submitted, along with the monthly premium and service documents, employees will be able to benefit from all social rights and benefits just like national employees. The spouse of the foreign employee, their dependent children who are not of legal age, and their children who are under 20 years old and still attending high school or under 25 years old and attending university can also benefit from the general health insurance.[9]
Under the Turkish social security system, foreign employees are entitled to health insurance coverage, allowing them to benefit from healthcare services in public hospitals and health centers. However, as per the first paragraph of Article 64(c) of Law No. 5510 on Social Insurance and General Health Insurance, the financing of chronic illnesses pre-existing before the date of employment in Türkiye is not covered by the General Health Insurance for foreign nationals working in Türkiye.[10]
As stipulated in Article 18 of Law No. 5510 on Social Insurance and General Health Insurance, employees qualify for a temporary incapacity allowance granted by the social security system. This allowance is provided for each day they are unable to work due to temporary incapacity, starting from the third day of incapacity. To be eligible for this allowance, employees must have paid a minimum of ninety short-term insurance premiums within one year before the onset of their temporary incapacity.
The calculation for the temporary incapacity allowance is based on two-thirds of the employee’s gross daily income during the sick leave period. Additionally, if the temporary incapacity results from a work accident or occupational disease, the allowance covers all the unworked days during the incapacity period.
Additionally, foreign employees who contribute to the Turkish social security system are eligible for retirement benefits when they reach the required age and contribute for the necessary duration. Moreover, under specific conditions, legally resident and working foreigners in Türkiye have the right to unemployment benefits. These conditions include having worked for a minimum of 600 days within the past three years and having maintained continuous employment for at least 120 days before leaving their current job. Female foreign employees are entitled to maternity benefits during pregnancy and after childbirth, provided they meet the criteria set by the social security system.
Female foreign employees who are legally employed and contributing to the social security system are entitled to maternity benefits. These benefits cover a period of 8 weeks before the expected date of childbirth and 8 weeks after the actual date of childbirth, making it a total of 16 weeks of maternity leave. During the maternity leave of 16 weeks (112 days), which is granted to female employees who are insured at the time of maternity leave and have contributed for at least 90 days in the last 1 year before childbirth, the Social Security Institution (SGK) provides a daily allowance called “maternity allowance” for the period of incapacity to work.
Breastfeeding allowance is provided to female insured individuals who give birth or to male insured individuals when their non-insured wives give birth. To qualify, the insured must have paid at least 120 days of short-term insurance premium in the year before childbirth and must have a live birth. The amount of the allowance is determined yearly and is set at 520.00 TL for each child born alive in 2023.[11]
Furthermore, under long term insurance branch, Invalidity insurance provides financial assistance to individuals who become disabled and unable to work due to an illness or injury. To be eligible for invalidity insurance, an individual must have paid at least 1800 days of premium and have a minimum of 10 years of insurance coverage.
Old age insurance provides financial assistance to individuals who have reached the retirement age and are no longer able to work. Those who are considered insured for the first time under Law No. 5510, and have reached the age of 58 for women or 60 for men, and have at least 9000 days of disability, old age, and death insurance premiums reported, are entitled to an old-age pension. However, for insured individuals employed under an employment contract, the requirement for the number of premium days is applied as 7200 days.
Insured individuals, regardless of gender, can benefit from the old-age pension if they are three years older than the specified age limits, not exceeding 65 years, and have at least 5400 days of disability, old age, and death insurance premiums reported under their name.
As for the age condition stated in Law No. 5510, it is foreseen to gradually increase to 65 years for both female and male insured individuals starting from the year 2036, and will continue in effect until the year 2048.[12]
Table 5: Retirement Conditions in Türkiye |
|
| Independent workers and civil servants | 58 years (female) / 60 years (male) of age + 9000 days of PPD |
| Employees under an employment contract |
58/60 years of age + 7200 days of PPD Or 61/63 years of age + 5400 days of PPD |
| Starting from the year 2036, age limits will be increased every two years, and from the year 2048, the age of 65 will be applied for both women and men. | |
Death insurance, as one of the long-term insurance branches, is a premium-based and mandatory insurance that provides monthly benefits to the beneficiaries of the deceased insured. The rights provided by death insurance include a monthly pension for the beneficiaries, a lump-sum death payment, funeral allowance, and a marriage allowance for unmarried daughters receiving a monthly pension. To be eligible for death insurance, an individual must have paid at least 1800 days of premiums. For employees who are employed under an employment contract, a minimum of 5 years of insurance period and 900 days of premiums (excluding borrowing) is required.[13]
[1] Social Security Institution. (2023, April). Monthly Statistical Bulletins. Retrieved July 13, 2023, from https://www.sgk.gov.tr/Istatistik/Aylik/42919466-593f-4600-937d-1f95c9e252e6/. (Document in Turkish)
[2] Law No. 5510 on Social Insurance and General Health Insurance. (2006, June 16). Official Gazette, 26200.
[3]KÜÇÜKEVCİLİOĞLU, & BENDERLİOĞLU. (n.d.). Law No. 5510 on Social Insurance and General Health Insurance. General Directorate of Budget and Financial Control. Retrieved July 28, 2023, from https://ms.hmb.gov.tr/uploads/2019/06/90765510-sayili-sosyal-sigortalar-ve-genel-saglik-sigortasi-kanunu-mhu-egitimi-sunumu-2015.pdf. (Document in Turkish)
[4] SGK, Strategy Development Presidency. (2019). Social Security Institution and Social Security System. www.sgk.gov.tr. Retrieved April 20, 2023, from https://www.sgk.gov.tr/Download/DownloadFileStatics?f=kurum_tanitim_kitabi_ENG.pdf&d=YAYINLARIMIZ
[5] SGK. (n.d.). Earnings Based on Premiums. Social Security Institution. Retrieved July 28, 2023, from https://www.sgk.gov.tr/Content/Post/2e0c9e1a-2cfe-4456-af10-49d3de0c58ba/Prime-Esas-Kazanc-Miktarlari-2023-07-14-09-23-17. (Document in Turkish)
[6] General Directorate of International Labor. (n.d.). – Foreign Employees’ Social Security. Retrieved April 20, 2023, from http://www.csgb.gov.tr/uigm/genel-bilgiler/yabanci-calisanlarin-sosyal-guvenligi/. (Document in Turkish)
[7] International Labor Force General Directorate. (n.d.). Social Security Agreements. Retrieved April 20, 2023, from http://www.csgb.gov.tr/uigm/genel-bilgiler/sosyal-guvenlik-anlasmalari/. (Document in Turkish)
[8] Social Security Institution. (2011, May 31). Circular regarding “Social Security of the Foreign Nationals” (General Circular No. 2011/43, Circular No. B.13.2.SGK.0.10.03.01-358). (Document in Turkish)
[9] SGK, Strategy Development Presidency. (2019). Social Security Institution and Social Security System. www.sgk.gov.tr. Retrieved April 20, 2023, from https://www.sgk.gov.tr/Download/DownloadFileStatics?f=kurum_tanitim_kitabi_ENG.pdf&d=YAYINLARIMIZ
[10] Social Security Institution. (2021, July 14). Payment of Health Service Fees for Foreign Nationals with Chronic Illnesses. Circular No. 2021/25.
[11] Social Security Institution (n.d). Breastfeeding Allowance. Retrieved July 17, 2023, from https://bit.ly/450apk0 (Document in Turkish)
[12] SGK, Strategy Development Presidency. (2019). Social Security Institution and Social Security System. www.sgk.gov.tr. Retrieved April 20, 2023, from https://www.sgk.gov.tr/Download/DownloadFileStatics?f=kurum_tanitim_kitabi_ENG.pdf&d=YAYINLARIMIZ
[13] SGK, Strategy Development Presidency. (2019). Social Security Institution and Social Security System. www.sgk.gov.tr. Retrieved April 20, 2023, from https://www.sgk.gov.tr/Download/DownloadFileStatics?f=kurum_tanitim_kitabi_ENG.pdf&d=YAYINLARIMIZ
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