In Turkey, the Social Security premium, often referred to as social security contributions, is a mandatory payment shared between the employer and the employee. For Turkish nationals, the general rates are 20.5% for the employer and 14% for the employee.
These contributions are fundamental to funding Turkey's social security system, which provides various benefits such as retirement pensions, health insurance, and unemployment benefits.
Breakdown of Social Security Contributions
The total social security contribution rate in Turkey is a sum of the employer's and employee's respective shares. It's important to note that the employer's contribution can sometimes be reduced under specific conditions.
- Employer Contribution:
- The general rate for employers is 20.5% of the employee's gross earnings.
- This rate can be reduced by 5% to 15.5% if certain conditions are satisfied. These conditions typically relate to timely payment of contributions and compliance with social security regulations.
- Employee Contribution:
- The standard rate for employees is 14% of their gross earnings. This portion is usually deducted directly from the employee's salary.
The following table summarizes the general social security contribution rates:
| Contributor | General Rate | Reduced Rate (Employer Only) |
|---|---|---|
| Employer | 20.5% | 15.5% (if conditions met) |
| Employee | 14% | N/A |
These rates ensure the ongoing sustainability and provision of social security services across the country. For more detailed information on specific conditions for reductions and comprehensive tax summaries, you can refer to reputable sources such as PwC's Worldwide Tax Summaries for Turkey.
