There are treaties between one country and specific countries that must be considered when foreign staff are relocated. It is therefore important for foreign companies to be informed about country-specific regulations and treaties, in order to correctly manage social insurance matters.
Overview of Social Insurance in Turkey
In the year of 2007, the system of social insurance in Turkey has been reviewed and changed. In the past, there are social insurance association, pension foundation and self-employed insurance association. However, the Social Security Insurance (SSI) is established, and the past two associations were united. The total population applied for social insurance was 81% of total population in 2008. The payment of social insurance is as follows.
Types of social insurance payment by employer payment by employee
Short-period danger 2% –
Long-period danger 11% 9%
General health insurance 7.5% 5%
Unemployment insurance 2% 1%
Total 22.5% 15%
Regarding of foreigners in Turkey, if the country makes a mutual agreement with Turkey, the home country will pay the social security so that the government of Turkey doesn’t need pay the social insurance.
The payment of unemployment insurance
Employees, employers and the government will burden the unemployment insurance as 1%, 2% and 1% and it must be paid every month. The payment by employers is deducted from the taxation of employers. On the other hand, the payment of employees should be deducted from the taxation of themselves.
For the foreigners, if there is mutual agreement between the foreign country and Turkey, it is not necessary to pay the social insurance if the foreigners’ home countries forcefully require their employees apply for the social insurance of their own countries. If the employees cannot apply for the foreign social insurance, generally employees should pay all of the payment. The payment of social insurance should also be declared to Social Insurance Office.
Whether it is accompanying our customers on a regular basis, or providing one-time consulting services, we have the necessary resources to assist our foreign customers and help the establishment and development of their business in Turkey.