Registering with SGK (Turkish Social Security Institute) is mandatory to hire employees as a local or foreigner. But things get messed up with a lot of unclear requirements.
Missing any single requirement means a risk of rejections, fines, inspections, or future restrictions. Worse than that, even work permits can be invalidated in some cases.
The solution is that you should have a complete list of all requirements that SGK asks to approve the hiring request. This blog post contains all the requirements that you need to fulfill to register with SGK and make your employees work in Turkey.
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Registering with SGK (Turkish Social Security Institute) is mandatory to hire employees as a local or foreigner. But things get messed up with a lot of unclear requirements.
Missing any single requirement means a risk of rejections, fines, inspections, or future restrictions. Worse than that, even work permits can be invalidated in some cases.
The solution is that you should have a complete list of all requirements that SGK asks to approve the hiring request. This blog post contains all the requirements that you need to fulfill to register with SGK and make your employees work in Turkey.
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Alp Atasoy
Sales and Business Development Consultant
Registering your company as a limited liability corporation, joint stock, or liaison office is mandatory before hiring employees. This process can take time and increase your budget. An alternative option is to use employee of record services for hiring without registering the company.
Obtaining a TIN (Tax Identification Number) is necessary before submitting your documents to the trade registry. You can do it through an online official portal, and, as a foreigner, you may need a passport ID and other essential documents. This is for submitting taxes, payroll transfers, and SGK contributions.
This is an online portal by the Turkish government. You need it for online SGK filings and other operations like payroll declarations. If you set up e-Devlet early, you can save time by avoiding rejections or local office visits.
You need to submit SGK premiums monthly for each employee, online. To make the process smooth, the government requires an e-signature that you must first register for and obtain from government officials. It is mandatory for submitting employee registrations, contribution declarations, and other payroll-related documents electronically.
Note that a work permit is not required if you are hiring local employees, but if you want to hire expats in Turkey using your newly registered entity, you need a valid work permit for each employee. This permit defines the type of work, the employer, and the duration.
Once you have obtained the valid work permit for your employee, you must confirm it with SGK. SGK won’t accept registrations for employees without a corresponding work permit. The work permit automatically serves as a residence permit. The government initially grants a one-year work permit. After the first year, it may be extended only for another year again, or in some cases for two years.
Again, this requirement is only when you’re hiring expats in Turkey. Employees must also hold a residence visa with at least six months of validity remaining. The visa type should match the purpose of employment.
This is an important requirement for many reasons. One reason is that the government makes it mandatory, second, it can be highly helpful in the case of missing records, and third, it can help avoid penalties or interruption of SGK contributions. Work permits are time-limited, typically 1–2 years depending on the role. So, you must monitor expiration dates and start renewal procedures in advance.
Do not make the mistake of registering employees after their first working day. This can lead to legal issues. All employees, including foreigners, must be officially entered into the SGK system.
Employee information such as name, ID/passport, date of birth, address, and work permit number must be accurate. Errors can cause rejected filings or compliance audits.
For foreign employees, SGK registration must correspond exactly to the approved work permit. Any mismatch in employer name, position, or dates can block registration and payroll processing.
Short-term assignments, interns, or directors need specific SGK registration categories. If you treat them like full-time staff, it can lead to incorrect contributions or compliance issues.
Turkey has fixed employer and employee social security contribution percentages. Employers must calculate contributions on the correct gross salary and include mandatory items like retirement, health, and unemployment insurance.
Employers must file monthly SGK premium declarations (Sosyal Güvenlik Prim Bildirgesi) and pay contributions before the deadlines. Late submission incurs interest, penalties, and administrative scrutiny.
SGK calculates contributions within defined minimum and maximum salary thresholds. Declaring less than the minimum or more than the maximum can cause compliance issues or missed benefits.
Unemployment insurance is mandatory for all employees. Both employer and employee portions must be calculated and paid along with SGK premiums.
Turkey provides various contribution incentives for specific sectors, young hires, or long-term employees. If you use these legally, they reduce costs and ensure compliance without penalties.
Every foreign employee’s work permit, passport, and visa must be stored securely. These are frequently requested during SGK audits or inspections, and during international travels.
Payroll documents, including salary slips, payment confirmations, and contribution calculations, should be retained for the period mandated by Turkish law (usually 10 years for tax and SGK purposes).
Every SGK declaration and contribution payment should have a supporting record or receipt, proving that payments were made accurately and on time.
Any official communication, notifications, or queries from SGK or the tax office should be kept for reference, especially if disputes or audits arise.
Regular internal checks help identify errors before official inspections, prevent retroactive fines, and ensure ongoing compliance with contributions, filings, and work permit data.
Requirement | Done |
1. Register your company with the Turkish Trade Registry. | ☐ |
2. Obtain a Turkish tax number for your entity. | ☐ |
3. Set up e-Government (e-Devlet) access for employer operations. | ☐ |
4. Acquire an employer e-signature for SGK declarations. | ☐ |
5. Secure valid work permits for all foreign hires. | ☐ |
6. Confirm work permit registration with SGK. | ☐ |
7. Ensure proper visa status before employment starts. | ☐ |
8. Track work permit expiration and renewal deadlines. | ☐ |
9. Register each employee with SGK before their start date. | ☐ |
10. Maintain accurate employee personal data in the SGK system. | ☐ |
11. Link work permits to SGK registration. | ☐ |
12. Register temporary or short-term employees separately. | ☐ |
13. Calculate employer and employee contribution rates correctly. | ☐ |
14. Submit monthly premium and declaration reports on time. | ☐ |
15. Adhere to minimum and maximum salary bases for SGK contributions. | ☐ |
16. Include unemployment insurance contributions. | ☐ |
17. Apply legal incentives or reductions where eligible. | ☐ |
18. Keep copies of employee work permits and ID documents. | ☐ |
19. Maintain payroll records for the legally required period. | ☐ |
20. Document monthly SGK payment receipts and filings. | ☐ |
21. Retain correspondence with SGK and tax authorities. | ☐ |
22. Audit internal records to avoid retroactive penalties. | ☐ |
The problem is not that you can’t fulfill these social security requirements for hiring employees in Turkey. The real issues are the time required for learning the local labor laws, applying, complying, facing rejections, and bearing fines.
These are some of the most common reasons why foreign employers choose EOR service providers that have been working in the Turkish market for over two decades and have deep knowledge of local rules. FMC Group is one of them, having started providing market research services 27 years ago and offering EOR services for 15 years.
We can handle all requirements, and you don’t need to register a company at all. We also handle taxes, payroll, and bookkeeping under a separate service: accounting management.
Feel free to book a 30-minute free consultation call to discuss your business goals and learn how we can help you in the Turkish market.
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