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TURKEY: Social security changes

Article 10 of the Social Security Transactions Regulation was amended on March 2, 2011.  Employers are now obligated to register all foreign national employees transfered to Turkey for a period of more than 3 months with Turkish Social Security (regardless if the employer continues to pay foreign social security in employee’s home country). Before this change, there was an exemption from Turkish social security without any time limitation provided that employees’ SSI was being paid abroad.

As a reminder, the regulations still state that if the foreigner is not being paid social security abroad, they must be registered with SSI in Turkey prior to commencing work.

Please ensure that all foreign employees working in Turkey, regardless of payroll location, comply with this both the new and old requirements. A circular from the authorities is anticipated within next 2 weeks to guide on procedural implementation. In the event of noncompliance, the Turkish Employer is subject to an adiministravie fine and most importantly, may not be able to benefit from social security incentives for a year.

Note however, the above regulatory changes appear to be contrary to statute, and therefore ultra vires. Therefore we hope they will be challenged, ammended or revoked at some point in the future.

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