The Turkish social security system predominantly resembles the Bismarck system which has more regulatory measures in the labor market than a liberal system. The primary legislation about the Social Security system is the Social Security and General Health Insurance Law and the main official regulatory and supervisory authority for social insurance is the Social Security Institution. (‘SSI/SGK’)
Furthermore, the legislation regulating the social security system does not differentiate between domestic and foreign companies. It also should be noted that latencies/delays in fulfilling social insurance obligations may result in administrative penalties.
Submitting information to SSI
The first obligation of the Employer is to submit information about its employees to the SSI via “statement of employment” and “statement of termination” in the determined terms. As for the new employment the Employer is obliged to submit the “statement of employment” to the SSI, no later than the start date of employment. Similarly, following the termination of employment, the Employer shall notify the ISS about termination in the following ten days.
In the context of social security obligations, along with some other responsibilities, one of the most important obligations of the employer is to pay the premium rates. The employer shall pay the premiums of its employees and submit the documents regarding the payment no later than the 23rd day of the following month.
Premium rates are levied on the wage of each employee at the rates presented in the table.
| Type of Insurance | Employer’s Share (%) | Employee’s Share (%) | Total (%) |
| Long-Term Insurance | 11 | 9 | 20 |
| General Health Insurance | 7,5 | 5 | 12,5 |
| Unemployment Insurance | 2 | 1 | 3 |
| Total | 22,5 | 15 | 37,5 |
