Turkey’s social security system covers much more than retirement contributions. Employers and employees are also subject to detailed rules concerning general health insurance, healthcare eligibility, occupational accidents, occupational diseases, and the calculation of earnings subject to social security contributions.
For companies employing personnel in Turkey, one of the most important payroll questions is determining which elements of employee compensation must be included in the SGK contribution base (prime esas kazanç).
Salary is generally subject to social security contributions, but the treatment of bonuses, benefits, allowances, severance payments, private health insurance, meal benefits, and other compensation elements can differ.
The timing of the payment can also affect the month in which SGK contributions must be declared.
This guide provides an overview of important SGK health insurance, payroll, and social security contribution rules in Turkey under Social Insurance and General Health Insurance Law No. 5510.
General Health Insurance in Turkey
Turkey operates a compulsory General Health Insurance system (Genel Sağlık Sigortası – GSS) within the broader SGK framework.
The system provides qualifying insured individuals and their dependants with access to healthcare services subject to statutory eligibility conditions.
For employees, GSS contributions are generally integrated into the ordinary social security contribution system rather than being managed as a completely separate private insurance arrangement.
International employers should therefore distinguish between:
- statutory SGK health coverage;
- private health insurance provided as an employee benefit; and
- supplementary health insurance.
These forms of coverage do not necessarily replace one another.
How Long Can Graduates Continue Receiving Healthcare Coverage?
Turkish social security legislation provides continued healthcare protection for certain students after graduation.
This is particularly relevant to young people who are no longer considered dependants through their mother or father and who have not yet become insured through employment or another qualifying status.
Under Article 60 of Law No. 5510, qualifying graduates can continue to receive general health insurance coverage for a limited period after completing their studies.
Healthcare Coverage After Secondary Education
A qualifying student graduating from high school or equivalent secondary education can continue to benefit from general health insurance protection for:
2 years following graduation
provided that the individual:
- has not exceeded 20 years of age;
- is not considered a dependant of another insured person; and
- has not independently become subject to general health insurance under another status.
During this qualifying period, coverage can continue without an income test.
Healthcare Coverage After University
A similar rule applies to qualifying graduates of higher education.
Healthcare protection can generally continue for:
2 years following graduation
provided that the graduate:
- has not exceeded 25 years of age;
- is not otherwise considered a dependant; and
- has not become independently subject to general health insurance.
The two-year period begins from the day following graduation.
Who Pays GSS Contributions During the Graduate Coverage Period?
Where the statutory conditions are satisfied, the graduate is treated as covered by general health insurance without undergoing an income test during the qualifying period.
The relevant GSS cost is financed by the state.
This provision is designed to prevent young graduates from immediately losing healthcare protection while transitioning from education to employment.
What Happens When the Graduate Finds a Job?
Once the individual begins employment requiring ordinary social security registration, their healthcare status can change accordingly.
For an employee working under 4/a, general health insurance is integrated into the employee’s SGK coverage.
Employers should therefore ensure that graduates beginning their first job are properly registered with SGK within the applicable statutory deadline.
How Many Contribution Days Are Required to Receive Healthcare?
General health insurance coverage is subject to contribution-day requirements in certain situations.
Under the general framework of Article 67 of Law No. 5510, an insured person and qualifying dependants generally need:
30 days of general health insurance contributions during the preceding 12 months
before applying to a healthcare provider.
The precise application of healthcare eligibility rules can depend on the person’s insurance status and circumstances.
Why the 30-Day Rule Matters
An individual can be registered with SGK without necessarily satisfying every healthcare eligibility condition immediately.
This can be particularly relevant to:
- newly insured individuals;
- people returning to insured employment after a long interruption; and
- individuals moving between different insurance statuses.
Employers should therefore avoid promising immediate healthcare eligibility solely because an SGK registration has been submitted.
Healthcare Services Without Patient Contribution
Turkey’s general health insurance system normally includes patient contribution rules for certain healthcare services.
However, specific healthcare services and situations are exempt from participation charges under Article 69 of Law No. 5510.
Occupational Accidents and Occupational Diseases
Healthcare services provided because of an:
- occupational accident; or
- occupational disease
fall within the statutory framework for exemption from applicable patient participation charges.
The protection also extends to qualifying healthcare services connected with certain military exercises and manoeuvres.
Disaster and War-Related Healthcare
Healthcare services required because of qualifying:
- disasters; or
- wartime situations
are also included among the statutory exemptions.
These provisions form part of the broader social protection function of Turkey’s general health insurance system.
Family Physician Consultations
Qualifying examinations performed by family physicians (aile hekimi) and certain personal preventive healthcare services are also included within the exemption framework.
Preventive healthcare can include services intended to identify or reduce health risks before more serious treatment becomes necessary.
Chronic Diseases and Transplantation
Certain healthcare services relating to chronic diseases determined by SGK can also be exempt from patient contributions.
The framework additionally includes qualifying:
- organ transplantation;
- tissue transplantation; and
- stem-cell transplantation
services.
The exact scope depends on applicable SGK healthcare rules.
Follow-Up Examinations
Qualifying control or follow-up examinations are also among the healthcare services for which statutory participation charges may not apply under the relevant framework.
Healthcare providers and patients should nevertheless assess the specific SGK rules applicable to the treatment concerned.
Employer Responsibilities Following an Occupational Accident
Employers have important responsibilities when an employee suffers an occupational accident (iş kazası).
Where an employee covered by general health insurance suffers an occupational accident, the employer must ensure that the healthcare required by the employee’s condition is provided without delay.
Immediate medical assistance should take priority over administrative procedures.
Employer Responsibilities in Occupational Disease Cases
A similar principle applies where an employee develops a qualifying occupational disease (meslek hastalığı).
The employer must ensure that necessary healthcare services are provided in accordance with the employee’s medical condition and applicable statutory requirements.
Occupational health obligations should therefore be integrated into the employer’s emergency and workplace-safety procedures.
Can the Employer Recover Medical Expenses From SGK?
Where the employer incurs necessary healthcare expenses in connection with an occupational accident or occupational disease, qualifying documented costs can be covered by SGK according to the statutory framework.
Documentation is therefore important.
Employers should retain:
- medical invoices;
- hospital documents;
- receipts;
- payment evidence; and
- other supporting records.
The reimbursement mechanism should not be treated as a substitute for complying with separate occupational accident reporting requirements.
Are Social Security Contributions Mandatory in Turkey?
Yes.
Law No. 5510 establishes compulsory contributions to finance:
- short-term insurance branches;
- long-term insurance branches; and
- general health insurance.
SGK is required to collect the statutory contributions, while the relevant insured persons and employers are required to pay contributions according to the applicable rules.
Social security contributions are therefore not optional employee benefits.
What Is the SGK Contribution Base?
The SGK contribution base (prime esas kazanç) determines the earnings on which social security contributions are calculated.
For ordinary employees, it is not limited to the employee’s contractual base salary.
Various additional forms of remuneration can also be included.
Correctly identifying the contribution base is one of the most important aspects of Turkish payroll compliance.
Salary Subject to SGK Contributions
The gross amount of salary earned by an employee is generally included in earnings subject to SGK contributions.
This includes ordinary remuneration earned through the employment relationship.
Depending on the circumstances, wage-related payments can include:
- normal salary;
- overtime pay;
- weekly rest remuneration;
- national and general public holiday pay; and
- annual leave remuneration.
These payments must be allocated to the correct contribution period.
Bonuses and Premiums
The gross amount of qualifying:
- bonuses;
- premiums; and
- similar employee entitlements
is generally included in the SGK contribution base, subject to applicable exemptions and contribution ceilings.
Employers should therefore avoid assuming that variable compensation falls outside social security contributions simply because it is not part of fixed monthly salary.
Commissions and Variable Compensation
Sales commissions and other variable remuneration can also affect the employee’s SGK contribution base where they constitute earnings arising from employment.
This is particularly important for international companies employing:
- sales managers;
- account executives;
- business-development employees; and
- employees receiving performance-related compensation.
The payroll treatment of base salary and variable compensation should be configured correctly from the beginning of employment.
Private Health Insurance Paid by the Employer
Employer contributions toward private health insurance can affect the SGK contribution calculation.
Law No. 5510 contains specific rules concerning amounts paid by employers for employees’:
- private health insurance; and
- individual private pension arrangements.
Part of these contributions can benefit from a statutory SGK exemption, while amounts exceeding the applicable limit can become subject to contributions.
Individual Private Pension Contributions
Employer-funded contributions to an employee’s individual pension system (Bireysel Emeklilik Sistemi – BES) are treated according to similar specific rules.
Employers should distinguish:
- employee-funded BES contributions;
- employer-funded contributions; and
- statutory exemptions applicable to qualifying employer payments.
Benefits should be configured correctly in payroll rather than being automatically classified as entirely contribution-free.
Payments Ordered by Courts or Administrative Authorities
Payments made to employees pursuant to qualifying decisions of courts or administrative authorities can also be subject to SGK contributions where the underlying payment is legally included in the contribution base.
The fact that remuneration is paid retrospectively following litigation does not automatically make it exempt from social security contributions.
Employers should identify:
- the nature of the payment;
- the period to which it relates;
- whether it is contribution-bearing; and
- the correct SGK declaration procedure.
Which Payments Are Exempt From SGK Contributions?
Not every amount or benefit provided by an employer is included in the social security contribution base.
Article 80 of Law No. 5510 establishes important exclusions and exemptions.
The legal nature of each payment must therefore be identified before payroll is calculated.
Benefits in Kind
Qualifying benefits in kind (ayni yardım) are generally excluded from the SGK contribution base.
This can include certain benefits provided directly as goods rather than cash.
The distinction between a benefit in kind and a cash allowance is important.
A cash payment intended to cover the same expense does not necessarily receive the same SGK treatment.
Death, Birth and Marriage Assistance
Qualifying employer payments provided as:
- death assistance;
- birth assistance; and
- marriage assistance
are among the payments excluded from the contribution base under the statutory framework.
The payment should genuinely correspond to the relevant category.
Simply giving ordinary salary a different label does not automatically create an SGK exemption.
Business Travel Expenses
Qualifying business travel allowances and expenses (harcırah) can also fall outside the SGK contribution base.
Employers should maintain documentation demonstrating the business purpose of the travel and the nature of the payment.
This is particularly important for employees who travel frequently inside or outside Turkey.
Mobile-Duty and Survey Payments
Certain statutory payments connected with mobile duties and qualifying survey or field activities can also fall outside the contribution base.
The precise treatment depends on the legal nature of the payment rather than simply the employer’s internal description.
Severance Compensation
Qualifying severance compensation (kıdem tazminatı) is generally excluded from the SGK contribution base.
This is an important distinction in termination payroll.
Severance compensation should not be treated in the same way as ordinary salary merely because both amounts are paid to the employee at termination.
Notice Compensation
Qualifying notice compensation (ihbar tazminatı) is also generally excluded from the SGK contribution base under the relevant statutory framework.
Employers should nevertheless distinguish notice compensation from ordinary salary paid during a period in which the employee continues working.
The legal nature of the payment determines the payroll treatment.
End-of-Employment Lump-Sum Payments
Certain qualifying end-of-employment payments or lump sums that have the nature of severance compensation can also fall outside the SGK contribution base.
Employers should carefully identify the legal basis of any termination payment before applying the exemption.
Meal Benefits
Meal benefits are subject to specific SGK rules.
Qualifying amounts can be exempt from contributions up to the limits and conditions determined under the applicable legislation.
Because the applicable monetary thresholds and implementation rules can change, payroll systems should be updated whenever new SGK limits become effective.
Child and Family Allowances
Qualifying child and family allowances can also benefit from contribution exemptions within the limits established under the social security framework.
Amounts exceeding the applicable exemption can become subject to SGK contributions.
Employers should therefore avoid treating the entire benefit as automatically contribution-free.
Private Health Insurance and BES Exemption Limit
Employer contributions to qualifying:
- private health insurance; and
- individual pension arrangements
can be excluded from the SGK contribution base up to the applicable statutory threshold.
Under the framework described in Article 80, the combined qualifying amount can benefit from an exemption linked to:
30% of the applicable minimum wage
subject to the detailed statutory calculation rules.
Amounts exceeding the applicable exemption can become subject to SGK contributions.
Why Cash vs. In-Kind Benefits Matter
The distinction between cash and in-kind benefits is fundamental in Turkish payroll.
For example, providing a qualifying benefit directly in kind may produce a different SGK result from paying the employee an equivalent amount in cash.
This can affect benefits such as:
- food;
- heating;
- transportation;
- childcare; and
- other employee assistance.
Employers should therefore review the legal and payroll treatment before designing compensation packages.
When Are Wages Subject to SGK Contributions?
Salary and wage payments are generally subject to social security contributions in the month in which they are:
earned (hak edildiği ay).
This principle applies to wage-type payments such as:
- normal salary;
- overtime;
- weekly rest pay;
- public holiday pay; and
- annual leave pay.
The payment date alone does not necessarily determine the relevant contribution month.
Example: Overtime Paid the Following Month
Suppose an employee performs qualifying overtime during September but the employer processes the overtime payment in October.
Because overtime is a wage-related entitlement, payroll teams must consider the statutory rule concerning the period in which the remuneration was earned rather than simply treating every payment as October compensation.
Correct period allocation is particularly important when preparing SGK declarations.
When Are Non-Wage Payments Subject to Contributions?
Different timing rules generally apply to non-wage payments.
Payments such as qualifying:
- bonuses;
- premiums;
- education assistance;
- transportation allowances; and
- cash benefits for childcare, heating, or food
are generally taken into account for social security purposes in the month in which they are:
paid.
This distinction between wage and non-wage remuneration is fundamental to Turkish payroll.
Why Payment Timing Matters
Incorrect allocation of remuneration can affect:
- monthly SGK contribution bases;
- contribution ceilings;
- employee contributions;
- employer contributions;
- payroll corrections; and
- SGK reporting.
Companies paying quarterly or annual bonuses should pay particular attention to these rules.
SGK Contribution Ceiling
Earnings subject to social security contributions are limited by a statutory upper contribution base.
Under the framework reflected in the source rules, the monthly contribution ceiling is linked to a multiple of the statutory minimum wage.
Historically, the relevant ceiling has been expressed as:
7.5 times the applicable minimum wage.
Payroll teams should always use the ceiling applicable to the relevant payroll period.
What Happens When the Contribution Ceiling Is Exceeded?
An employee may receive substantial non-wage compensation in a particular month, such as:
- a performance bonus;
- annual incentive;
- commission;
- retention bonus; or
- another variable payment.
If the employee’s total contribution-bearing remuneration exceeds the applicable monthly SGK ceiling, part of the non-wage payment may not be assessable in that month because the ceiling has already been reached.
Special carry-forward rules can then apply.
Carrying Excess Non-Wage Payments Forward
Where a non-wage payment cannot be fully subjected to contributions because the SGK ceiling has been reached in the month of payment, the remaining contribution-bearing amount can be carried forward.
Under the applicable framework, it can be added to the contribution bases of subsequent months where capacity remains below the ceiling, beginning with the month following payment and for a period not exceeding:
2 months.
This rule is particularly important for employees receiving large variable compensation.
Example of the SGK Ceiling Carry-Forward Rule
Assume an employee receives both a high monthly salary and a substantial annual performance bonus.
In the bonus month, the employee’s contribution-bearing earnings exceed the applicable SGK ceiling.
The portion of the qualifying non-wage payment that cannot be assessed because of the ceiling may then be carried into the following months, subject to:
- the remaining contribution-base capacity in those months; and
- the statutory two-month carry-forward limit.
Payroll software must therefore be capable of tracking unused contribution-bearing amounts across payroll periods.
Why Bonus Payroll Is Particularly Important in Turkey
International employers frequently operate global bonus schemes under which employees receive:
- quarterly commissions;
- annual performance bonuses;
- sales incentives;
- retention awards; or
- sign-on bonuses.
These payments can have significant Turkish SGK consequences.
Employers should review:
- whether the payment is wage or non-wage remuneration;
- when it becomes subject to contributions;
- applicable exemptions;
- the monthly SGK ceiling; and
- whether any excess must be carried forward.
Global payroll instructions should therefore be adapted to Turkish social security rules.
SGK Contribution Base and Employee Benefits
Compensation packages increasingly contain elements beyond base salary.
A Turkish employee’s package may include:
- salary;
- meal benefits;
- transportation;
- private health insurance;
- BES contributions;
- bonuses;
- commissions;
- family benefits;
- childcare support; and
- other allowances.
Each component should be classified separately for SGK purposes.
The fact that a payment is described internally as a “benefit” does not automatically mean it is exempt from social security contributions.
Payroll Documentation
Employers should maintain documentation explaining how the SGK contribution base has been calculated.
Useful records include:
- employment agreements;
- salary amendment letters;
- bonus plans;
- commission plans;
- benefit policies;
- private health insurance invoices;
- BES documentation;
- expense reports;
- travel documentation;
- payroll calculations; and
- bank payment records.
This documentation can become particularly important during an SGK audit.
Payroll Reconciliation
A good payroll process should reconcile at least three sets of information:
HR data → payroll calculations → SGK declarations
Differences between these records should be investigated.
For example, if HR records show a substantial bonus but the SGK contribution base contains only base salary, the employer should be able to explain the applicable exemption or payroll treatment.
Employer of Record and Payroll Services in Turkey
International companies employing workers in Turkey can use an Employer of Record (EOR) or Turkish payroll provider to manage local employment and social security obligations.
Services can include:
- Turkish employment contracts;
- employee onboarding;
- SGK registration;
- monthly payroll;
- social security contribution calculations;
- general health insurance administration;
- unemployment insurance;
- bonus and commission payroll;
- employee benefits;
- private health insurance administration;
- annual leave;
- expense administration;
- termination calculations; and
- statutory SGK reporting.
This can be particularly useful for international companies whose global compensation structures contain several different salary and benefit components.
Payroll Compliance Checklist for Employers in Turkey
Companies should ensure that their Turkish payroll process correctly identifies:
- salary subject to SGK contributions;
- overtime;
- bonuses and commissions;
- benefits in kind;
- cash allowances;
- private health insurance;
- BES contributions;
- meal benefits;
- child and family allowances;
- travel expenses;
- severance compensation;
- notice compensation;
- applicable contribution exemptions;
- monthly SGK contribution ceilings; and
- carry-forward amounts from non-wage payments.
Each compensation component should have a documented payroll treatment.
Why SGK Contribution Classification Matters
Incorrect classification can create liabilities in both directions.
If a company incorrectly treats a contribution-bearing payment as exempt, it may face:
- unpaid social security contributions;
- late-payment charges;
- administrative penalties;
- payroll corrections; and
- SGK audit exposure.
Conversely, incorrectly applying contributions to an exempt payment can result in unnecessary employer costs and incorrect employee deductions.
Accurate classification therefore protects both employer and employee.
Turkey’s social security system combines general health insurance, occupational risk protection and compulsory social security contributions within the broader SGK framework.
Qualifying secondary-school and university graduates can continue receiving general health insurance coverage for a limited period following graduation, while ordinary healthcare eligibility can depend on the required number of GSS contribution days.
For employers, one of the most important compliance areas is determining the correct SGK contribution base. Salary, overtime, bonuses, premiums, commissions and certain benefits can be subject to contributions, while qualifying severance payments, notice compensation, benefits in kind and certain statutory allowances may be excluded or partially exempt.
Timing also matters. Wage-related payments are generally associated with the period in which they are earned, whereas qualifying non-wage payments are generally assessed in the month in which they are paid.
Finally, high bonuses and other variable compensation require special attention because amounts exceeding the monthly SGK contribution ceiling can, in certain circumstances, be carried forward into the following two months.
For international employers, integrating Turkish payroll, employee benefits, GSS administration, SGK contribution calculations and Employer of Record services can help ensure accurate payroll processing and reduce social security compliance risks.