Summary

Turkey has a broad-based social security system covering retirement benefits, disability and industrial injury, maternity benefits, unemployment and health insurance.

Entitlement to benefits generally derives from and individual’s contribution history, although some benefits in the area of social assistance and social benefits arise due to residence in Turkey.

Details

Contributions

The combined employer contribution rate (including those to the unemployment insurance fund) is 22.75% of earnings between $745 and $6,700 per month. Employee contributions are 15% on the same earnings base. Maximum employer contributions are therefore $16,257 per year, and maximum employee contributions $10,700.

Treaties

Turkey has 36 bilateral social security agreements, including most major EEA countries and the UK and Canada. These agreements determine which country has the right the charge social security, has the obligation to provide benefits, and prevent social security being levied twice on the same income. Most inbounds expatriates to Turkey therefore continue to pay home social security rather than Turkish contributions. There is no bilateral agreement with the US, so US nationals working in Turkey on assignment are subject to double contributions if they remain employed by a US entity.

Many of Turkey’s agreements are for less than the ‘standard’ five years – two years of home country coverage is the norm - although the Turkish authorities are generally accepting of applications for extended home country coverage.

Exemptions

Regardless of whether a social security agreement is in place, a foreign national who is employed by a foreign company, and who remains covered under the social security system of their home country, is not required to pay Turkish contributions for up to three months, provided proof of foreign coverage is filed with the local social security office.

Given the comparatively low level of income cap for social security purposes, paying some elements of income as exempt allowances (such as family and child allowances, meal allowances etc.) is unlikely to produce cost savings for the few non-Turkish employees who are subject to Turkish social security.

Administration

 Monthly social security contributions must be paid over by the 26th of the following month. SSI contributions are paid to the tax office via a process called ‘MUHSGK’. 

Benefits

 Benefits are generally low and are rarely accessed by non-Turkish nationals. Contributions to the Turkish social security system or the regimes of some of the countries with which Turkey has bilateral agreements gives access to Turkey’s Universal Healthcare system. 

Other

 Individual contributions to Turkish social security are tax deductible. 

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