The employer Social Security (SGK) premium deferral regulation was approved by the Grand National Assembly of Turkey on January 18, 2017. Under this rule, employers who employ workers subject to the SGK 4/a premium system and receive the minimum wage support benefit became eligible for the SGK 2017 premium deferral. The SGK automatically deferred employer social security premiums for December 2016, January 2017 and February 2017 to the following months: October 2017, November 2017 and December 2017, respectively. Contributions for unemployment insurance and stamp tax were excluded from the deferral; the SGK continued to accrue unemployment insurance premiums and stamp tax for December, January and February and these amounts remained payable on their original schedule.
To calculate the amount eligible for SGK premium deferral, first determine SPEK (earnings subject to insurance premiums). The calculation multiplies SPEK by the social security premium rate (60.70 x 34.50%) and then adds the daily minimum portion (20.70 multiplied by the number of contribution days). After subtracting the unemployment insurance premium from that result, the remaining amount is the SGK premium subject to deferral. An example SGK premium deferral calculation is shown below:
- Company A employs 2 people, each with a gross wage of 1,777.50 TL; the calculation for a 60-day deferral period is as follows.
- SGK premium: (2 x 1,777.50) x 34.50% = 1,226.47 TL — this is the premium amount that can be deferred.
This deferral option was made selectable within the SGK E-Declaration (E-Bildirge) system for employers benefiting from the minimum wage incentive during February. For the December period, the E-Declaration submitted in January had the deferral applied automatically at approval. However, for the January period, confirmed in February, the deferral was turned into an optional choice: when employers submitted their monthly premium and service E-Declaration, they could choose whether to defer by clicking the relevant button on the approval screen. E-Declaration submitters were thus given control over whether to use the SGK premium deferral.
Except for the deferred amounts under the SGK premium deferral program for December 2016, January 2017 and February 2017, employers remain required to pay accrued SGK unemployment insurance premiums and stamp tax by the last day of the month following the accrual month. Employers who fail to pay the accrued unemployment insurance premiums and stamp tax on time may lose eligibility for other government supports and premium incentives offered by the SGK.
Public institutions that do not qualify for the minimum wage support are not eligible to benefit from the premium deferral arrangement.