SGK administrative fines are monetary penalties imposed on employers by the Social Security Institution (Sosyal Güvenlik Kurumu) when required documents and regulations are not followed. As of 2020 some changes were implemented and these penalties have been announced under the name SGK administrative fine. These fines are issued to business owners when they violate rules during hiring and employment processes.
What Is an SGK Fine?
An SGK fine is the general term for penalties that the Social Security Institution issues to workplaces to be paid by employers when employment procedures are not completed correctly — for example, when required documents are not submitted to SGK or when hired workers are not registered for social insurance.
When Are SGK Fines Issued?
Reasons for SGK fines arise when employers fail to comply with rules that apply during employment. For instance, if a hired person is not registered for insurance or it is discovered that someone is working without insurance, SGK will impose an administrative fine on the employer. In addition, failing to meet certain procedural requirements that fall under the scope of fines also leads to penalties.
Situations covered by fines include:
- Failure to submit or late submission of the employment entry notice
- Failure to submit or late submission of the termination notice
- Failure to submit or late submission of the service record (hizmet belgesi)
- Failure to submit or late submission of the monthly premium declaration
How Much Are the 2020 SGK Administrative Fines?
The amount of an SGK administrative fine varies depending on the violated rule. SGK applies administrative fines to workplaces when hiring, employment, or termination-related procedures and the associated documents are not submitted within the required timeframes.
These fines, with their reasons, are as follows:
- If the service document is a primary (original) document: an administrative fine equal to one-fifth of the monthly minimum wage per insured person recorded on the document is applied, provided that the total fine does not exceed twice the monthly minimum wage.
- If the service document is an additional document: an administrative fine equal to one-eighth of the monthly minimum wage per insured person recorded on the document is applied, provided the total does not exceed twice the monthly minimum wage.
- Employers must deliver termination notices to SGK within 10 business days at the latest. For workplaces that fail to submit the notice within this period, fines ranging from twice to ten times the minimum wage may be applied.
- Employment entry notices must be submitted by the 23rd day of the month. If they are not, penalties ranging from twice to ten times the minimum wage may be imposed.
What Is SGK Fine Reduction?
SGK fine reduction is the process by which a portion of the SGK administrative fine is waived if the employer pays the fine within 15 days following the notification. If the workplace pays the penalty before this deadline, one quarter of the total fine is forgiven. In other words, paying within the 15-day period requires settling only three quarters of the total fine; the remaining quarter is not legally required.
How to Check SGK Fines?
SGK fine inquiry can be performed by using the document code included in the notice or the workplace registration number via the Social Security Institution’s website. It is also possible to query fines through the e-Government (e-Devlet) platform using the national ID number and password. On SGK’s website, you can access the “Administrative fines” section and enter the required information to view details.
Where to Pay SGK Administrative Fines?
Payment of SGK administrative fines is made directly through SGK provincial and district directorates. If the fine is paid within the first 15 days after notification, a 25% reduction is applied. Many fines have a final payment deadline of 30 business days. Employers also have the right to appeal SGK fines; appeals are submitted to the relevant courts. If the court upholds the fine, the employer must pay through the institutions or channels designated by the court’s decision.
What Is the Penalty for Late Submission of the Employment Entry Notice?
The employment entry notice penalty is applied when the employment entry document, which must be submitted after the person starts working, is not delivered by the 23rd of the month following the hire. The minimum fine in this case is twice the gross minimum wage. The total fine amount cannot exceed ten times the minimum wage.
When Must the Service Document Be Submitted?
The deadline for submitting service documents is the 23rd day of each month. Documents can be submitted through the institution’s official website until that date. After the deadline passes, the online submission option is closed and SGK’s penalty rules apply; late submissions must then be delivered in person to SGK provincial or district offices.
What Is the Penalty for Late Submission of Monthly Premium and Service Documents?
Late submission penalties for monthly premium declarations and service documents have been redefined under regulations. The amounts depend on whether the service document is primary or additional and the number of insured persons recorded on the document.
Accordingly, the penalty amounts are:
- If the service document is a primary (original) document: an administrative fine equal to one-fifth of the monthly minimum wage per insured person recorded on the document, provided that the total does not exceed twice the monthly minimum wage.
- If the service document is an additional document: an administrative fine equal to one-eighth of the monthly minimum wage per insured person recorded on the document, provided the total does not exceed twice the monthly minimum wage.
What Is the Penalty for Late Submission of the Termination Notice?
Late submission of the termination notice occurs when the employer fails to deliver the termination document within 10 days after the employee leaves. The penalty for this violation ranges between twice and ten times the minimum wage.
What Is the Penalty for Failing to Submit the Monthly Premium on Time?
The penalty for not submitting the monthly premium has been set at a fixed amount of 512 TL for certain violations. The combined administrative fines for primary and additional declarations have a maximum total of 5,116 TL under current regulations.
What Happens If the Service Document Is Not Submitted?
If the service document is not submitted and the related SGK administrative fine is not paid, SGK may take sanctions against the workplace. Final decisions on such sanctions are determined by the competent court where appeals are filed.