Social Security and Universal Health Insurance Law (No. 5510): A Regulatory Overview

Social security in Turkey is unified under Law No. 5510, which aims to provide a comprehensive safety net for all individuals through social insurance and universal health coverage. At Atlas Global Audit & Accounting, we help our clients navigate the complexities of this law to ensure full compliance for their workforce.

1. Fundamental Insurance Categories

The law classifies insurance holders into three primary categories (commonly referred to as 4/a, 4/b, and 4/c):

• Category 4/1-a (Employees):Individuals employed by one or more employers through a service contract. This includes artists, intellectuals, and foreign workers (subject to reciprocity).
• Category 4/1-b (Self-Employed):Individuals working on their own account without a service contract. This includes village/quarter headmen, taxpayers due to commercial or professional earnings, and partners of joint-stock or limited liability companies.
• Category 4/1-c (Public Servants):Individuals employed by public administrations and those assigned to permanent staff positions.

2. Scope of Coverage

The social security system is divided into two main branches:

• Short-Term Insurance:Covers work accidents, occupational diseases, sickness, and maternity.
• Long-Term Insurance:Covers invalidity, old-age (pensions), and survivors’ benefits (death).
• Universal Health Insurance (UHI):Financed by premiums to ensure access to healthcare services for all residents and their dependants (spouses, children under 18/20/25, and dependent parents).

3. Employer Obligations: Notification and Registration

Employers are strictly liable for the timely notification of their employees to the Social Security Institution (SGK):

• Hiring Notifications (Article 8):As a general rule, employers must notify the SGK before the employee starts work.
  • Construction, Fishing, and Agriculture:Notification can be made on the day of commencement.
  • Foreign Assignments:Notifications for employees hired for duties abroad or on international transport vehicles must be made within one month.
• Termination Notifications (Article 9):When an employment relationship ends, the employer must notify the SGK within ten (10) days of the termination date.

4. Exemptions and Special Cases (Article 6)

Certain individuals are not deemed insurance holders under this law, including:

• Spouses working for free in a family business.
• Foreign nationals sent to Turkey for temporary duty (up to 3 months) who can prove they are already insured in their home country.
• Students performing production work during their formal vocational education.
• Relatives living in the same residence performing domestic tasks without external help.

5. Insurance During Temporary Presence Abroad (Article 10)

For companies operating internationally, the law provides continuity:

• If an employee is sent abroad on a temporary assignment, their Turkish social security rights and obligations continue without interruption.
• This ensures that employees remain covered under the Turkish system while fulfilling corporate duties in foreign jurisdictions.

Compliance and Strategic Advisory

Failure to meet registration deadlines or miscalculating premium bases can result in heavy administrative fines and the loss of government incentives. Atlas Global Audit & Accounting provides specialized services in:

• SSI Registration and Workforce Onboarding.
• Calculation of Social Security Premiums.
• Consultancy on Foreigner Work Permits and Social Security Reciprocity.
• Audit of Payroll and Social Security Records.

Ensure your company stays compliant with Law No. 5510. Contact our experts for a detailed consultation.