The social security system in Turkey went through a major transformation process in 2007, and has become a more efficient and faster functioning system at the end of this process, which is based on collecting different social security funds under a single institution for a centralized inspection.
SSK, Retirement Fund and Bağ-Kur, three different social security institutions, were merged into a single institution under the name of Social Security Institution (SGK) in 2007. As of 2008, these three social security institutions cover approximately 81% of the population. The new system is fully operational since the beginning of 2008.

Social Security Premium Payments Social security contributions (calculated as a percentage of the employee's gross earnings) can be paid by both the employer and the employee. The rates in the table below are indicated for the purpose of providing general information.

Foreign nationals who pay social security contributions in their own country do not need to pay their social security premiums in effect in Turkey if there is a mutual agreement between Turkey and the country in question.

Unemployment Insurance Premium Payments Employees must pay Unemployment Insurance contribution premium by 1%, employers 2% and state 1% over the monthly gross earnings of the employee. Similar to social security contributions, unemployment insurance premiums must be also paid on a monthly basis. Employers may deduct such contributions from their taxable income. On the other hand, employee contributions can be deducted from income tax base.

Foreign nationals who are subject to the compulsory social security system in a country which has a social security agreement with Turkey that is still in force are not subject to the applicable social security payments in Turkey. The document that proves that these persons are subject to the social security system in their country must be submitted to the local social security directorates. If the employee is not subject to the social security system in their own country, in general, this employee must fulfill all of the social security payments applicable in Turkey. Unemployment insurance premiums are announced together with social security contributions and paid to the Social Security Institution.