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25 November 2025

Turkiye proposes amendments to Social Security legislation affecting employer costs

  • On 17 October 2025, Turkiye submitted a draft law proposing significant amendments to Social Security legislation, which if enacted will take effect on 1 January 2026.
  • The employer's share of Social Security contributions for disability, old-age and survivors insurance will increase, bringing the total long-term insurance contribution rate to 23.75%.
  • The Treasury incentive for non-manufacturing sectors will be reduced.
  • The cap on Social Security contributions will increase, directly affecting employer cost structures and total employment costs.
 

On 17 October 2025, a draft a law titled "Law Proposal on Amendments to Tax Laws, Certain Other Laws and Decree Law No. 631" was submitted to the Grand National Assembly of Turkiye.

The proposal introduces several significant changes to the Social Security legislation, which are expected to directly affect employer costs.

The draft law would make the following amendments:

  • The employer's share of social security contributions for disability, old-age and survivors insurance will increase from 11% to 12%, bringing the total long-term insurance contribution rate to 23.75%.
  • The Treasury incentive, currently applied as a "4-point reduction" in the employer's Social Security contribution for non-manufacturing sectors — i.e., 4% of the Social Security contribution amount — will be reduced to 2% of the employer's Social Security contribution.
  • The Social Security contribution cap will increase from 7.5 times to 9 times the minimum wage.

The proposed amendments would enter into force as of 1 January 2026.

If enacted as proposed, these amendments are expected to have a direct impact on employer cost structures.

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Contact Information

For additional information concerning this Alert, please contact:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2025-2362

 
 

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