Turkey extends social security premium debt payment period
Turkey’s Minister of Labour and Social Security, Vedat Işıkhan, has unveiled new measures to alleviate the burden of outstanding social security contributions in the country. The regulations introduce expanded options for deferring and paying in instalments debts owed to the Social Security Institution (SGK).
Minister Işıkhan announced that the maximum deferral period for SGK premium debts would be extended to 72 months. This significant expansion allows businesses and employers a longer timeframe to meet their obligations to the state, providing substantial financial relief.
The SGK is Turkey’s state social insurance institution, with ‘prim borçları’ referring to social contributions employers are legally obliged to pay for their employees, covering pensions, healthcare, and unemployment insurance. Accumulated SGK debt often presents a significant financial challenge for many businesses, particularly small and medium-sized enterprises.
This policy decision signals the Turkish government’s intent to support businesses during economic pressure. By offering more flexible payment terms, the government aims to prevent bankruptcies, protect jobs, stabilise the economy, and improve corporate liquidity. The extension is also expected to foster greater confidence among investors and business owners.
Source: Bloomberght
