Social security incentives in Turkey: which one applies and how to claim it

What is an SGK incentive and why does it matter?

SGK (Sosyal Güvenlik Kurumu, the Social Security Institution of Turkey) incentives are arrangements under which part of the employer's social security premium is covered by the Treasury or by the Unemployment Insurance Fund when certain conditions are met. The incentive is not paid out in cash. It is deducted from the premium accrued through the monthly premium and service declaration, which today is filed inside the MUHSGK return (the combined monthly withholding tax and social security declaration). This is why incentives cannot be separated from payroll: if the wrong law code is selected, the declaration is late or the workplace has overdue debt, the discount is not created or is reclaimed later.

For a foreign company operating in Turkey, incentives matter in two ways. The first is direct cost: a discount that looks small per person becomes a visible budget line once multiplied by headcount and 12 months. The second is compliance risk: an incentive used without meeting the conditions is reclaimed together with late payment penalties and interest. This guide explains the general logic of the incentives, their shared conditions and the claim process. Because durations, rates and amounts change often, we point you to the official source wherever a detail is not certain.

Which SGK incentives exist?

Incentives fall broadly into four groups. The summary below is meant to show which incentive becomes relevant in which situation; confirm the current conditions of each before applying it.

Temporary measures such as the minimum wage support are also applied from time to time. Because the amount and scope of such support are set again each year, we do not quote a figure here; check current conditions in the latest SGK announcement.

How is the Treasury discount calculated?

The most common incentive is the Treasury discount under Law No. 5510, Article 81/ı. It has long been called the "5-point discount", but in 2026 it is not 5 points for everyone. The employer's SGK share is 21.75% without the discount (disability, old age and survivors 12%, short-term insurance 2.25%, general health insurance 7.5%); Law No. 7566 raised the employer's disability, old age and survivors' share from 11% to 12%. The Treasury discount under Article 81/ı is 5 points in manufacturing (employers pay 16.75%) and 2 points outside manufacturing (employers pay 19.75%); employers that do not qualify pay 21.75%. The employer's unemployment insurance share stays at 2%. The discount applies to the full earnings subject to premium, which in 2026 range from a floor of TRY 33,030 to a ceiling of TRY 297,270 per month.

The total employer cost of a minimum wage employee is TRY 40,214.03 with the 2-point discount outside manufacturing, TRY 39,223.13 with the 5-point discount in manufacturing and TRY 40,874.63 without any discount. For an employee earning TRY 60,000 gross, the employer cost outside manufacturing (19.75% + 2% = 21.75%) is TRY 73,050.00. In manufacturing, the 5-point discount brings the SGK share to 16.75% and the total cost (16.75% + 2% = 18.75%) to TRY 71,250.00. To run the numbers for your own staff, use the employer cost calculator, and see the payroll parameters page for rates and thresholds during the year.

What conditions must an employer meet to claim an incentive?

Each incentive has its own conditions, but most share a common core. The points below are general rules; for details and exceptions, check current conditions in the latest SGK announcement.

• Declarations filed on time: Monthly premium and service declarations must be filed within the legal deadline (for MUHSGK, by the 26th of the following month). A late declaration can cost the incentive for that month.
• Premiums paid on time: Premiums, including the employee share, must be paid within the legal deadline.
• No overdue debt: Having no overdue premium, administrative fine or late interest debt to SGK is a precondition for most incentives. A tolerance up to a certain amount may apply; check current conditions in the latest SGK announcement.
• No finding of unregistered work: Workplaces found employing people without insurance or misreporting missing days may be excluded from incentives for a period.
• Average headcount condition: New employment incentives usually require the hire to be additional to the workplace's past average number of insured employees.
• Correct start-of-employment notice: The SGK start-of-employment notice (işe giriş bildirgesi) must be filed before the employee starts work. Some incentives also require registration with İŞKUR (the Turkish Employment Agency) or a period of prior unemployment.

Can several incentives be combined?

As a general rule, only one premium incentive is applied for the same insured person in the same month, and the employer chooses which one. If an employee qualifies for both a youth incentive and a disabled employment incentive, the employer compares which gives the larger discount. Some incentives replace the Treasury discount (5 points in manufacturing, 2 points elsewhere) while others are added on top of it. These combination rules differ by law, so check current conditions in the latest SGK announcement.

In practice, payroll teams ask the same question at every new hire: "Which incentives can apply to this person, which one gives the largest discount, and for how many months can we keep the conditions?" The answer should be worked out before the hiring decision is final, because for some incentives a registration step must happen before the start date.

How do you claim an incentive? Step by step

1. Eligibility screening: Check the candidate's age, gender, disability status, vocational certificate, İŞKUR registration and recent insurance history.
2. Workplace check: Review debt status, whether recent declarations were filed on time and the average insured headcount.
3. Start-of-employment notice: File it before the start date with the correct occupation code and document type. For the full document list, see the hiring paperwork guide.
4. Incentive definition: In the e-Bildirge (SGK online declaration) system, determine under which law the employee will be reported. Some incentives are suggested automatically; others need the employer's selection.
5. Payroll and declaration: When running monthly payroll, carry the employee's law code into the declaration and file MUHSGK on time.
6. Payment and monitoring: Pay the accrued premium on time. Track each incentive's duration, end month and the risk of losing eligibility (for example, a drop in headcount) every month.

What happens if an incentive is lost?

If it later turns out that an incentive was used without meeting the conditions, the amount is reclaimed with late payment penalties and interest. A large retroactive debt can also block the workplace from other incentives. The most common causes of errors are:

• Filing a declaration or paying even one day late.
• Overlooking a small SGK debt.
• Selecting an "additional employment" incentive for someone who simply replaces a departing employee.
• Continuing to apply an old law code after the incentive period has ended.
• Reporting missing days without supporting documents.

Example: annual impact of the Treasury discount at a 20-person workplace

Take a workplace with 20 employees and an average gross pay of TRY 60,000. Outside manufacturing the Treasury discount is 2 points: TRY 1,200.00 per person a month, a total monthly effect of TRY 24,000.00 and an annual effect of TRY 288,000.00. If the same workplace is in manufacturing, the discount is 5 points: TRY 3,000.00 per person a month, TRY 60,000.00 a month in total and TRY 720,000.00 a year. Filing one month's declaration late puts that month's discount (TRY 24,000.00 outside manufacturing, TRY 60,000.00 in manufacturing) at risk, which shows why the filing calendar should be tied to a checklist.

New employment incentives may be added on top of or instead of this discount, but because their rates and durations change, we left them out of the example. For your own scenario, check current conditions in the latest SGK announcement.

Which documents should be kept for an incentive?

In an SGK inspection or a retroactive review, the employer must be able to support its incentive choice. We recommend keeping the following in the employee file and payroll archive for at least the 5-year limitation period that applies to employee claims:

• The start-of-employment notice and a record of its submission date.
• Evidence of the incentive condition, such as a disability report, vocational qualification certificate or İŞKUR registration.
• An internal record of each incentive's start and end months.
• Monthly accrual slips, payment receipts and MUHSGK confirmations.
• Supporting documents for missing-day reports, such as medical reports or unpaid leave requests.

Keeping these documents digitally, per employee and searchable, makes inspections easier and simplifies the checks when an employee leaves.

What should HR and payroll teams do?

Incentive management is not a one-off task but a monthly control cycle. Recruiters should know a candidate's incentive eligibility early, payroll should apply the right law code, and finance should not miss payment dates. When parameters change at the start of the year, review your incentive list together with the new year payroll checklist. For the basic payroll steps, see how to calculate payroll in Turkey.