What is SGK in Turkey ?

The Social Security Institution (SGK), known as Sosyal Güvenlik Kurumu in Turkish, plays a crucial role in Turkey’s social welfare system.

Established to manage and administer various social security and health insurance programs, SGK is instrumental in providing financial protection and healthcare benefits to Turkish citizens and residents.

History and Evolution

The roots of Turkey’s social security system can be traced back to the early 20th century. However, the modern framework of SGK took shape with the establishment of the Social Insurance Institution in 2006. This marked a significant step in consolidating various social security institutions under one umbrella, streamlining processes, and improving the efficiency of the system.

Functions of SGK

SGK oversees a range of social security programs, including retirement, disability, and survivor’s pensions. Through these programs, SGK aims to provide financial support to individuals during their retirement years, in case of disability, or to the dependents of deceased contributors.

One of SGK’s critical functions is managing health insurance services. The institution ensures that eligible individuals have access to necessary healthcare services. SGK administers the health insurance system, coordinating with healthcare providers to cover medical expenses for its beneficiaries.

SGK is responsible for collecting social security contributions and premiums from employees, employers, and the self-employed. These financial contributions fund the various social security programs and health insurance services provided by the institution.

SGK establishes and enforces regulations related to social security and health insurance. It ensures that employers and individuals comply with the legal requirements regarding contributions and eligibility for benefits.

In recent years, SGK has undergone a digital transformation to enhance its efficiency and service delivery. The institution has implemented online platforms and services, allowing individuals to access information, make inquiries, and perform transactions related to their social security and health insurance accounts.

Challenges and Reforms

While SGK plays a crucial role in Turkey’s social welfare system, it faces challenges such as ensuring financial sustainability, adapting to demographic changes, and addressing the evolving healthcare needs of the population. The Turkish government has implemented reforms to address these challenges, with a focus on improving the effectiveness of social security programs and enhancing the quality of healthcare services.

Conclusion

The Social Security Institution (SGK) in Turkey stands as a key player in the country’s social welfare infrastructure. By managing social security programs and health insurance services, SGK contributes to the well-being of Turkish citizens, providing financial protection and access to essential healthcare. As Turkey continues to evolve, SGK remains pivotal in adapting and responding to the changing needs of its population, contributing to the overall social and economic development of the country.

San Global is well-equipped to assist you with your Employer of Record (EOR) and payroll requirements (also known as the Umbrella Company) in Turkey. We are capable of handling your HR (Recruitment) needs, even in the absence of a legal entity in Turkey.

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