Social security of foreign employees: what employers must watch

Hiring a foreign employee differs from hiring a Turkish employee in two respects: a work permit comes first, and the social security notification follows that permit. Premium rates and payroll calculation are the same; what makes the difference is that deadlines and documents depend on each other. This article looks at the subject from the employer's side. For the general question of which country the employee is insured in: Social security of foreigners working in Türkiye.

Who is insured?

Under Article 4 of Law No. 5510, a foreigner working under an employment contract for an employer in Türkiye is insured under 4/a, like a Turkish employee. For nationals of countries with which Türkiye has a social security agreement, the provisions of that agreement are checked first.

Two groups are not treated as insured in Türkiye (Art. 6):

• People sent to Türkiye for a job by an organisation abroad who prove that they are insured abroad. For people from countries without an agreement this period is at most 3 months; for agreement countries it follows the agreement.
• People resident abroad who work independently in Türkiye and are subject to their own country's social security law.

Without the document, the employee is insured in Türkiye from the first day and premiums are due from that date.

Notification deadlines

The notification needs the employee's foreigner identification number (starting with 99); SGK registration cannot be made with a passport number. For an employee coming to Türkiye for the first time, this number is created together with the work permit. General information on the hiring notice: SGK hiring notice.

Wage consistency

The wage stated in the work permit application cannot be below the minimum wage multiple set for the occupation: Cost of employing a foreigner. The earnings reported to SGK must be consistent with that wage. Showing a high wage in the permit application and reporting the minimum wage to SGK causes problems in both SGK and work permit inspections and makes extending the permit harder.

If the wage is agreed in foreign currency, it is converted into Turkish lira in the payroll; the amount, which varies month by month with the exchange rate, should not fall below the wage in the permit application.

Employees posted from abroad

If an employee of a company abroad is posted to Türkiye temporarily:

1. Check whether the employee's country has a social security agreement with Türkiye.
2. If it does, ask for the posting certificate issued by the institution in the employee's country before work starts, and submit it to SGK.
3. Put the period on the certificate in the calendar; an extension depends on the approval of both institutions.
4. Without an agreement, uninsured work is limited to 3 months; if the period is exceeded, the employee must be insured in Türkiye.
5. If the employee has moved onto the payroll and management of the Turkish company, they no longer count as a posted employee.

Even with the certificate, the work permit requirement still applies; an exemption from social security is not an exemption from the work permit.

Family members and health insurance

The spouse and children resident in Türkiye of a foreign employee insured under 4/a can benefit from general health insurance as dependants. The family members must not be insured in their own country and must hold a residence permit in Türkiye. For foreigners with a residence permit who do not work and are not registered as anyone's dependant, general health insurance applies separately after more than one year of residence in Türkiye (Art. 60).

Unemployment insurance and incentives

Unemployment insurance premiums are also deducted for a foreign employee insured under 4/a (Law No. 4447). Each premium incentive has its own conditions; some support is provided only for Turkish citizens or specific groups. Before applying an incentive to a foreign employee, check the scope of the relevant article.

Leaving employment

• If the work permit expires and has not been extended, the employee cannot work; a leaving notice is filed.
• Leaving codes and severance pay rules are the same as for Turkish employees: SGK leaving codes.
• When the employer changes, the new employer obtains a new work permit; the old permit is not valid with the new employer.

Common mistakes

• Starting work before the work permit is approved. This leads to penalties both under the work permit rules (Law No. 6735 Art. 23) and at SGK for unregistered employment.
• Not tracking the period of the posting certificate and not starting insurance once it has expired.
• Leaving a gap between the wage in the permit application and the wage reported to SGK.
• Reporting a foreign partner or manager as a salaried employee, or not reporting them at all: SGK status of company partners.
• Not notifying SGK in Türkiye because the wage is paid by the parent company abroad.

Employer checklist

1. Work permit and its start date
2. Foreigner identification number
3. Social security agreement and posting certificate (if any) and its period
4. Wage in the permit application and the earnings to be reported to SGK
5. The 30-day deadline for the hiring notice
6. Registration of family members as dependants
7. Permit end date and extension timetable

For all steps of employing foreign staff: Employment for foreign companies · Work permit criteria

Legal basis: Social Insurance and General Health Insurance Law No. 5510 Art. 4, 6, 8, 60; International Labour Force Law No. 6735; Unemployment Insurance Law No. 4447; bilateral social security agreements to which Türkiye is a party.