Informal employment in Turkey
In terms of social security, the general rule for foreigners is for full coverage within the pension system. However, there are some exceptions.
I have received a question from Margaret where she asks about the informal or unregistered employment in Turkey. She says:
“Dear Mr. Orhan
I read with interest your piece in ‘the Hurriyet DN’ Weekend edition of Mearch 13-14 regarding ex-pats receiving a Turkish pension. I have a teacher friend here whose SSK (Social Security Premium) was not paid prior to 1999, and his school refuses to pay for it. What you could recommend about this problem? Could you recommend a lawyer who could advise in such a situation? Many thanks. Margaret”
Dear Margaret, unfortunately, informal or unregistered employment is one of the most serious problems of the Turkish economy. Goods and services in the unregistered economy are produced largely by unregistered workers. Unregistered employment is defined as “not informing the working status or income to the related public institutions (i.e. tax offices, Social Security offices, etc.) or lack of information on number of working days and earned wages.”
[HH] Are foreigners included in the Social Security system?
In terms of Social Security the general rule for foreigners is for full coverage within the pension system. However, some exceptions are located in the law no. 5510 for foreigners.
According to arrangements these groups are not eligible under these conditions:
-Citizens of countries that signed Social Security agreements with Turkey based on the reciprocity principal.
-People who are sent to Turkey with a mission by and/or on the behalf of an institution established abroad and can certify being part of a similar system in their home country.
-The self-employed who work and reside abroad and are subject to Social Security legislation of their home country.
All foreigners, except in the above mentioned situations, are accepted for coverage by the Social Security system. They must notify the Social Security Institution, or SGK, through their employers. However, if you are not registered as a foreign worker, what can you do?
If you are employed and unregistered, firstly, you can apply to the Social Security Institution, or SGK, with a complaint petition. Social Security inspectors will start legal actions against employers, after reviewing your complaint. After this inspection, two results may occur. First, your labor can be registered as retrospective. In this case, you will gain your legal rights and administrative fines apply to your employer. The total administrative fine for a one-year unregistered employment is of up to 26,244 Turkish Liras for 2010 (including unpaid premiums.)
Another possibility is for your complaint petition to remain inconclusive. If this is the case, your only option is to get a lawyer and go according to Article 86 of law no. 5510. According to this law, “If insurance holders, for whom monthly premiums and service documents are not submitted by the employer and who could not be determined to be working by the institution, can prove that they work with a written statement or by applying to labor court within five years from their last day of work. Only then will monthly earning totals and paid premium days stated in the court judgment of such individuals will be taken into consideration.” When searching for a lawyer, remember to have these documents ready:
-Your employment contract (if you have)
-Your work documents (payrolls, payment receipts, etc)
-Your work permit documents
-Others
If you need a lawyer on this issue, you can get legal assistance by calling (312) 424 0194.
Hurriyet Daily News/02.04.2010
I have received a question from Margaret where she asks about the informal or unregistered employment in Turkey. She says:
“Dear Mr. Orhan
I read with interest your piece in ‘the Hurriyet DN’ Weekend edition of Mearch 13-14 regarding ex-pats receiving a Turkish pension. I have a teacher friend here whose SSK (Social Security Premium) was not paid prior to 1999, and his school refuses to pay for it. What you could recommend about this problem? Could you recommend a lawyer who could advise in such a situation? Many thanks. Margaret”
Dear Margaret, unfortunately, informal or unregistered employment is one of the most serious problems of the Turkish economy. Goods and services in the unregistered economy are produced largely by unregistered workers. Unregistered employment is defined as “not informing the working status or income to the related public institutions (i.e. tax offices, Social Security offices, etc.) or lack of information on number of working days and earned wages.”
[HH] Are foreigners included in the Social Security system?
In terms of Social Security the general rule for foreigners is for full coverage within the pension system. However, some exceptions are located in the law no. 5510 for foreigners.
According to arrangements these groups are not eligible under these conditions:
-Citizens of countries that signed Social Security agreements with Turkey based on the reciprocity principal.
-People who are sent to Turkey with a mission by and/or on the behalf of an institution established abroad and can certify being part of a similar system in their home country.
-The self-employed who work and reside abroad and are subject to Social Security legislation of their home country.
All foreigners, except in the above mentioned situations, are accepted for coverage by the Social Security system. They must notify the Social Security Institution, or SGK, through their employers. However, if you are not registered as a foreign worker, what can you do?
If you are employed and unregistered, firstly, you can apply to the Social Security Institution, or SGK, with a complaint petition. Social Security inspectors will start legal actions against employers, after reviewing your complaint. After this inspection, two results may occur. First, your labor can be registered as retrospective. In this case, you will gain your legal rights and administrative fines apply to your employer. The total administrative fine for a one-year unregistered employment is of up to 26,244 Turkish Liras for 2010 (including unpaid premiums.)
Another possibility is for your complaint petition to remain inconclusive. If this is the case, your only option is to get a lawyer and go according to Article 86 of law no. 5510. According to this law, “If insurance holders, for whom monthly premiums and service documents are not submitted by the employer and who could not be determined to be working by the institution, can prove that they work with a written statement or by applying to labor court within five years from their last day of work. Only then will monthly earning totals and paid premium days stated in the court judgment of such individuals will be taken into consideration.” When searching for a lawyer, remember to have these documents ready:
-Your employment contract (if you have)
-Your work documents (payrolls, payment receipts, etc)
-Your work permit documents
-Others
If you need a lawyer on this issue, you can get legal assistance by calling (312) 424 0194.
Hurriyet Daily News/02.04.2010
