Companies employing workers in Turkey may, under certain conditions, benefit from various social security contribution incentives, reductions and support schemes.
Administered by the Social Security Institution (Sosyal Güvenlik Kurumu – SGK), these measures are designed to encourage registered employment, support the recruitment of specific categories of workers, promote investment and reduce part of the social security costs borne by employers.
For international companies employing staff in Turkey, identifying the applicable SGK incentives can therefore be an important part of payroll management and employment cost optimisation.
SGK Incentives for Employers in Turkey
Turkish legislation provides several mechanisms allowing private-sector employers with employees insured under Article 4/1-(a) of Social Insurance and General Health Insurance Law No. 5510 to benefit from reductions in social security contributions.
These incentives have been introduced to:
- encourage registered employment in Turkey;
- promote the employment of young people and women;
- support the employment of people with disabilities;
- encourage the recruitment of certain categories of jobseekers;
- promote regional, strategic and large-scale investments;
- support research and development activities;
- encourage certain cultural investments;
- improve occupational health and safety.
Contribution reductions are also available to certain insured persons falling under Article 4/1-(b) of Law No. 5510, particularly to encourage the regular payment of social security contributions.
15 SGK Incentives and Support Schemes
The SGK currently administers 15 different social security contribution incentives, support schemes and reductions under several pieces of Turkish legislation.
These measures are primarily based on Social Insurance and General Health Insurance Law No. 5510, Unemployment Insurance Law No. 4447, Labour Law No. 4857 and several specific laws.
1. Two-Point Reduction in Employer Social Security Contributions
Article 81/1-(ı) of Law No. 5510 provides for a two-point reduction in the employer’s share of disability, old-age and survivors’ insurance contributions, subject to the applicable conditions.
This mechanism allows eligible employers to reduce part of their social security costs.
2. Five-Point Reduction for Certain Employees Sent Abroad
Article 81/1-(i) of Law No. 5510 provides for a five-point reduction in the employer’s share of general health insurance contributions for certain employees sent or assigned to work abroad.
3. Five-Point Reduction for 4/1-b Insured Persons
Article 81/1-(j) of Law No. 5510 also provides for a five-point contribution reduction for certain insured persons falling within the 4/1-b category.
4. Social Security Incentives for Investments in Turkey
Under Additional Article 2 of Law No. 5510, incentives may apply to employer and, depending on the relevant scheme, employee social security contributions within the framework of Turkey’s state investment support mechanisms.
These incentives are intended to encourage certain regional, strategic and large-scale investments in Turkey.
5. 2026 Minimum Wage Support
Provisional Article 112 of Law No. 5510 provides for the 2026 minimum wage support scheme.
This measure helps reduce employment costs for employers and employees meeting the applicable eligibility requirements.
6. Incentive for Hiring Unemployment Benefit Recipients
Under Article 50 of Law No. 4447, hiring individuals receiving unemployment benefits may, subject to certain conditions, qualify for incentives covering employee and employer social security contributions.
7. Incentive for Certain High-Risk Workplaces
Additional Article 4 of Law No. 4447 provides an incentive for workplaces classified in the “very hazardous” category where no qualifying occupational accident has occurred during the relevant period.
The incentive applies to the employer’s share of unemployment insurance contributions.
8. Incentives for Hiring Young People, Women and Qualified Workers
Provisional Article 10 of Law No. 4447 provides an important employment incentive for employers recruiting certain categories of workers.
The scheme is designed to encourage the employment of young people, women and individuals holding certain professional qualifications or certificates by providing support for the employer’s share of social security contributions.
9. Incentive for Employing People with Disabilities
Article 30 of Turkish Labour Law No. 4857 provides an incentive relating to the employer’s share of social security contributions when employing eligible workers with disabilities.
10. R&D and Design Incentives
Law No. 5746 on Supporting Research, Development and Design Activities provides social security contribution incentives for qualifying research, development and design activities.
The scheme may apply to companies carrying out eligible R&D activities in Turkey.
11. Support for Cultural Investments and Initiatives
Law No. 5225 provides incentives for qualifying investments and initiatives in the cultural sector.
Businesses and activities meeting the statutory requirements may therefore benefit from social security contribution support.
12. Incentive for Hiring Social Assistance Beneficiaries
Additional Article 5 of Law No. 3294 provides social security contribution support designed to encourage employers to hire individuals receiving certain forms of social assistance.
13. Incentive for Beneficiaries of Social Service Programmes
Additional Article 1 of Law No. 2828 provides an employment incentive for individuals who have benefited from certain social service models defined under Turkish legislation.
14. Occupational Health and Safety Support
Article 7 of Occupational Health and Safety Law No. 6331 provides a support mechanism for certain occupational health and safety (OHS) services.
15. Tourism Wage Support
Finally, Provisional Article 36 of Law No. 4447 provides for a wage support scheme for the tourism sector, subject to the conditions established by Turkish legislation.
Why Are SGK Incentives Important for Employers?
Social security contributions represent an important component of the total employment cost of an employee in Turkey.
Correctly applying an available contribution reduction can therefore help a company reduce its employer costs, particularly when several employees qualify for an incentive.
However, the existence of an incentive does not automatically mean that an employer is entitled to benefit from it.
Eligibility may depend on factors including:
- the employer’s status;
- the employee’s profile;
- the date and conditions of recruitment;
- the company’s industry;
- the employer’s status with the SGK;
- compliance with reporting obligations;
- timely payment of social security contributions;
- and the specific requirements of each incentive scheme.
SGK incentives should therefore be managed as part of a robust payroll and social security compliance process in Turkey.
Undeclared Employment and Loss of SGK Incentives
Eligibility for SGK incentives is closely linked to compliance with Turkish social security obligations.
Additional Article 14 of Law No. 5510 provides for sanctions when a court decision, inspection or audit establishes that an employer:
- failed to register a person who was actually working for the company; or
- registered an individual as an employee even though that person was not actually working for the company.
These situations respectively concern undeclared employment and fictitious employee registration.
How Long Can an Employer Be Excluded from SGK Incentives?
Where an infringement falling within the scope of the rules is identified, the workplace concerned may lose access to certain social security contribution incentives.
According to the SGK rules, a first finding may result in a one-month exclusion.
If another infringement is identified within three years of the first finding, each subsequent finding may result in a one-year exclusion from the relevant incentives.
The exclusion applies where the number of individuals involved exceeds 1% of the total number of insured employees at the workplace, or, even where the 1% threshold is not exceeded, where more than five individuals are involved.
Which Incentives Can Be Lost Due to Undeclared Employment?
Where individuals are found to have been employed without being properly registered with the SGK, the affected incentives may include:
- the two-point reduction in the employer’s share of disability, old-age and survivors’ insurance contributions;
- the five-point reduction applicable to certain employees sent abroad;
- certain investment-related social security incentives;
- incentives for employing young people, women and professionally qualified workers;
- the 2026 minimum wage support;
- certain incentives for hiring social assistance beneficiaries;
- the unemployment insurance contribution incentive for qualifying very hazardous workplaces;
- occupational health and safety support;
- tourism wage support.
Particular attention should be paid to the 2026 minimum wage support. According to the SGK rules, an employer may be directly excluded from this support for one year, while amounts previously granted may be recovered with interest.
Tourism wage support may also be withdrawn, with amounts previously granted potentially recovered with interest under the applicable conditions.
Fictitious Employee Registration: What Are the Consequences?
Registering an individual with the SGK as an employee when that person is not actually working for the company may also result in the loss of several incentives.
These may include:
- the two-point reduction in certain employer social security contributions;
- the five-point reduction applicable to certain employees sent abroad;
- certain investment-related incentives;
- the 2026 minimum wage support;
- tourism wage support.
These rules highlight the importance of ensuring consistency between social security declarations, payroll records and the actual employment relationship.
SGK and Payroll Compliance in Turkey
For an international company employing staff in Turkey, payroll management involves much more than calculating gross and net salaries.
Employers must also determine the applicable social security contributions, complete the necessary SGK declarations, comply with statutory deadlines and identify any contribution reductions for which they may qualify.
Errors in payroll administration or social security reporting can lead not only to adjustments and additional costs but also to the loss of SGK incentives available to the employer.
How Azkan Group Can Help
Azkan Group supports international companies employing staff in Turkey with their payroll, employment administration and social security obligations.
Our services can include:
- payroll management in Turkey;
- salary and social security contribution calculations;
- SGK-related reporting requirements;
- employee administration;
- assessment of factors affecting total employment costs;
- Employer of Record (EOR) services in Turkey;
- Umbrella Company solutions in Turkey.
For international companies without their own local legal entity, our Employer of Record solutions can provide a practical way to employ staff in Turkey while managing local payroll and employment compliance requirements.
As Turkish employment and social security regulations evolve regularly, local expertise can help international employers manage their payroll, SGK contributions and employment compliance in Turkey.
SGK incentives, eligibility requirements and contribution rates may change. The eligibility of each employer should be assessed according to its specific circumstances and the legislation in force.
FAQ – SGK Incentives in Turkey
What is the SGK in Turkey?
The Sosyal Güvenlik Kurumu (SGK) is Turkey’s Social Security Institution. Employers are required to register employees, submit the relevant social security declarations and pay applicable contributions in accordance with Turkish legislation.
Are There Employer Social Security Contribution Reductions in Turkey?
Yes. Turkish legislation provides several schemes allowing eligible employers to benefit from reductions, incentives or support relating to social security contributions.
Can Foreign Companies Benefit from SGK Incentives?
Eligibility depends on the structure employing the worker in Turkey and the specific requirements of the relevant incentive. Each situation should therefore be assessed individually.
What Are the Main Employment Incentives in Turkey?
SGK-administered schemes include general employer contribution reductions, incentives for employing young people, women and people with disabilities, as well as support related to investments, R&D activities, tourism and the minimum wage.
What Happens If an Employer Does Not Register an Employee with the SGK?
Undeclared employment may result in the temporary loss of certain social security contribution reductions and incentives. For some schemes, support already received may also be recovered with interest.
How Can Employers Reduce Employment Costs in Turkey?
Managing employment costs requires accurate payroll calculations, identifying applicable SGK incentives and complying with all reporting and payment obligations. Any incentive should only be applied when the employer meets the relevant statutory requirements.
