Payroll & Social Security (SGK) Services

What are an employer's obligations toward its employees in Turkey?

Turkish law requires every employer who employs a worker under an employment contract to register that worker with the Social Security Institution (SGK), under Law No. 5510 on social insurance and general health insurance. This obligation applies to every employer operating in Turkey, regardless of the employer's or the employee's nationality, and applies equally to companies owned by foreign investors as it does to Turkish companies.

Important points to know

• The employee must be registered with SGK before actually starting work; this is the general rule set by law, with limited exceptions for sectors such as construction, fishing, and agriculture, which allow registration on the same day work begins
• Both the employer and the employee contribute to funding social insurance by law, and the employer is responsible for remitting both parties' shares together to SGK
• Turkish law sets a minimum wage below which no salary may be contracted, and payroll and entitlements must be calculated in a way that respects this minimum
• Processing payroll and reporting to SGK is not a one-time procedure but a recurring monthly obligation that continues throughout the employee's period of employment

Risks of irregular registration or payroll

Failing to register an employee with SGK, or registering after the legal deadline, exposes the employer to administrative financial penalties imposed by the institution, in addition to liability for any insurance or health entitlements the employee loses during the unregistered period.

Errors in processing payroll or in monthly reporting, such as delays in submitting data or not remitting the full contributions, create a dual liability toward both the state and the employee. These rules apply to companies owned by foreign investors with the same rigor as they apply to Turkish companies; neither the origin of the capital nor the nationality of the management exempts the employer from any of these obligations.

Frequently asked questions

Must an employee be registered with SGK before their first day of work? Yes, the general rule set by Law No. 5510 requires the employer to submit the insurance entry notice before the employee actually starts work, with limited exceptions for certain sectors such as construction, fishing, and agriculture, which allow registration on the same day work begins.

Does a company owned by a foreign investor follow the same SGK rules as a Turkish company? Yes, there is no exception based on the employer's nationality or the origin of the capital; every company employing workers in Turkey is bound by the same registration, contribution, and monthly reporting duties.

What happens if an employer doesn't register their employee with SGK? This exposes the employer to an administrative financial penalty imposed by the institution, in addition to liability for any insurance or health entitlements the employee should have received during the unregistered period.

Is processing payroll and reporting to SGK a one-time or recurring procedure? It is a recurring monthly obligation that continues throughout the employment relationship, since contributions must be remitted and wage data submitted for each month of work separately, not just when employment begins.

Last updated: 2026-09-07