Informational Overview-Turkish Social Security System (SGK).pdf
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- Solicitation number
- FA564125RBOS2
About this file
This is an informational overview document regarding the Turkish Social Security System (SGK) for offerors bidding on a Base Operations Support (BOS) contract for Department of Defense installations in Turkey. The document provides guidance on mandatory employment obligations when hiring Turkish National (TN) personnel.
All employers must register their company and every Turkish National employee with the SGK, with no exceptions for this contract. The system is contribution-based, funded through monthly premiums paid by both employees and employers calculated as a percentage of gross salary (Premium Earning Base or SPEK), with minimum and maximum thresholds updated annually. Offerors must budget for an employer-side contribution of approximately 22.5% of each employee's gross salary, in addition to withholding 15% from employee pay. The approximate total contribution rates are: Pension, Disability, and Death Insurance (20% total: 9% employee, 11% employer); General Health Insurance (12.5% total: 5% employee, 7.5% employer); Short-Term Risks/Work Accidents (2% total: 0% employee, 2% employer); and Unemployment Insurance (3% total: 1% employee, 2% employer), for a combined total of approximately 37.5%. These contributions fund comprehensive benefits including old-age pensions, general health insurance for employees and dependents, disability pensions, work accident and occupational disease insurance, maternity benefits, and unemployment insurance. The document emphasizes that offerors must conduct due diligence and consult with local legal and accounting experts in Turkey to ensure full compliance with all applicable laws and regulations.
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Informational Overview: The Turkish Social Security System (SGK)
Purpose: This document provides a general overview of the mandatory Turkish Social Security system to assist Interested Offerors in understanding their obligations when employing Turkish National (TN) personnel under the Base Operations Support (BOS) contract for DoD installations in Turkey.
Disclaimer: This overview is for informational purposes only and does not constitute legal advice. Offerors are required to conduct their own due diligence and are strongly advised to consult with local legal and accounting experts in Turkey to ensure full compliance with all applicable laws and regulations.
1. Executive Summary: What Offerors Need to Know
The Turkish Social Security system is administered by the Social Security Institution (SGK) . It is a mandatory, contribution-based system that covers nearly all employees in Turkey.
• Mandatory Participation: All employers must register their company and every Turkish National employee with the SGK. There are no exceptions for the TN workforce on this contract.
• Contribution-Based: The system is funded by monthly premiums paid by both the employee and the employer. The employer is responsible for calculating, withholding the employee's share from their salary, and remitting the total amount (employer + employee shares) to the
SGK.
• Significant Cost: Social security contributions represent a significant percentage of an employee's gross salary. This must be factored into any cost proposal for labor.
• Comprehensive Coverage: Contributions cover a wide range of benefits for employees, including retirement pensions, healthcare, disability, maternity, and unemployment.
2. Key Components of the Turkish Social Security System (SGK)
A. Contribution Rates (The Financial Obligation)
Contributions are calculated as a percentage of the employee's gross salary, which is known as the "Premium Earning Base" (SPEK). There is a legal minimum (based on the national minimum wage) and a maximum ceiling for this base, which are updated annually.
The approximate total contribution rates are as follows:
Key Takeaway for Offerors: You must budget for an employer-side contribution of approximately 22.5% of each employee's gross salary, in addition to the 15% you must withhold from the employee's pay.
B. Core Benefits Provided to Employees
The premiums paid by the employer and employee fund the following critical social security benefits:
• Old-Age Pension (Retirement): Provides a monthly pension to employees. Eligibility is determined by the number of premium payment days and years of service. Age requirements may also apply, depending on the employee's initial date of insurance registration. Re-hiring a retired employee requires paying a different, higher "Social Security Support Premium"
(SGDP).
• General Health Insurance (GSS): Provides employees and their eligible dependents with access to healthcare services at public and contracted private hospitals.
• Disability Pension: Provides a pension for employees who lose their ability to work.
• Work Accident & Occupational Disease Insurance: Covers medical treatment and provides temporary or permanent incapacity benefits if an employee is injured on the job.
• Maternity Insurance: Provides temporary incapacity benefits before and after childbirth.
• Unemployment Insurance: Provides a temporary income for employees who lose their jobs, subject to certain conditions.
Official Resources: Offerors should verify all information using official sources.
• Social Security Institution (SGK): http://www.sgk.gov.tr
• Official Gazette (for all laws): https://www.resmigazete.gov.tr http://www.sgk.gov.tr/ https://www.resmigazete.gov.tr/
File details come from the government source that posted it. Updated .