• Table of Contents

  • What are the social charges for companies in Türkiye? All Know Social Security Charges Türkiye
  • Introduction
  • Social charges in Türkiye
  • Social security contributions
  • Unemployment insurance contributions
  • pension contributions
  • Health contributions
  • Contribution rates in Türkiye
  • The advantages and disadvantages of social charges in Türkiye
  • Benefits of social charges in Türkiye
  • The disadvantages of social charges in Türkiye
  • Exemptions from social charges in Türkiye
  • Conclusion

What are the social charges for companies in Türkiye? All Know Social Security Charges Türkiye

Introduction

Turkey is a developing country that has experienced rapid economic growth in recent years. However, companies wishing to set up in Turkey must take into account the social charges they will have to pay. In this article, we are going to look at corporate payroll taxes in Turkey and how they affect businesses.

Social charges in Türkiye

Social charges in Turkey are mandatory contributions that employers must pay for their employees. These social charges include social security contributions, unemployment insurance contributions, pension contributions and health contributions.

Social security contributions

Social security contributions are compulsory contributions that employers must pay for their employees. These contributions are calculated on the basis of the employee's gross salary and are paid to the Social Security Institute (SGK). Social security contributions are used to fund social security benefits, such as health care, retirement benefits, and disability benefits.

Unemployment insurance contributions

Unemployment insurance contributions are compulsory contributions that employers must pay for their employees. These contributions are calculated on the basis of the gross salary of the employee and are paid to the Turkish Employment Agency (İŞKUR). Unemployment insurance contributions are used to finance unemployment benefits for workers who have lost their jobs.

pension contributions

Pension contributions are mandatory contributions that employers must pay for their employees. These contributions are calculated on the basis of the employee's gross salary and are paid to the Pension and Social Insurance Fund (SSK). Pension contributions are used to finance retirement benefits for workers who have reached retirement age.

Health contributions

Health contributions are mandatory contributions that employers must pay for their employees. These contributions are calculated on the basis of the employee's gross salary and are paid to the Social Security Institute (SGK). Health contributions are used to finance health care for workers and their families.

Contribution rates in Türkiye

Contribution rates in Turkey vary depending on the type of contribution and the employee's gross salary. Here are the contribution rates for each type of contribution in 2021:

• Social security contributions: 20,5% (14% for the employer and 6,5% for the employee)
• Unemployment insurance contributions: 2%
• Pension contributions: 14% (11% for the employer and 3% for the employee)
• Health contributions: 5% (3,5% for the employer and 1,5% for the employee)

The advantages and disadvantages of social charges in Türkiye

Social charges in Turkey have advantages and disadvantages for companies. Here are some of the pros and cons of payroll taxes in Turkey:

Benefits of social charges in Türkiye

• Payroll taxes in Turkey provide social protection to workers, which can improve their well-being and productivity.
• Payroll taxes in Turkey can help reduce healthcare costs for workers, which can reduce absenteeism and improve productivity.
• Payroll taxes in Turkey can help reduce retirement costs for workers, which can improve their well-being and productivity.

The disadvantages of social charges in Türkiye

• Social charges in Turkey can increase costs for businesses, which can reduce their profitability.
• Social charges in Turkey can make companies less competitive in the global market by increasing their production costs.
• Social charges in Turkey can make companies less flexible in hiring and firing, which can reduce their ability to adapt to market changes.

Exemptions from social charges in Türkiye

There are exemptions from social charges in Turkey for certain categories of workers. Here are some examples of exemptions from social charges in Turkey:

• Self-employed people are not required to pay social security contributions, but they can choose to do so voluntarily.
• Foreign workers may be exempted from certain social security contributions under bilateral agreements between Turkey and their country of origin.
• Part-time workers may be exempt from certain social security contributions depending on their salary and working time.

Conclusion

In conclusion, social charges in Turkey are mandatory contributions that employers have to pay for their employees. These social charges include social security contributions, unemployment insurance contributions, pension contributions and health contributions. Contribution rates in Turkey vary depending on the type of contribution and the employee's gross salary. Social charges in Turkey have advantages and disadvantages for companies, but they provide social protection for workers. There are exemptions from social charges in Turkey for certain categories of workers.