Payroll & social security (SGK)
Your employees' payroll and SGK handled by our accountant, with explanations in Chinese for management
The licensed certified public accountant (SMMM) in the Yeni İpekyolu (New Silk Road) team handles SGK (Social Security Institution) hiring and termination notifications, monthly payroll and the withholding tax and social security premium return for Chinese companies in Türkiye, and keeps annual leave and seniority records. Whether an employee is Turkish or foreign, we explain every cost and every obligation to management in Chinese.
Payroll rules to know when hiring in Türkiye
Notify before day one: the timing of SGK hiring notifications
In Türkiye, an employer generally must submit an employment start notification to SGK before the employee starts work. This differs from the "start work first, sort out insurance later" habit in some parts of China; late notification can result in an administrative fine. If the company is hiring for the first time, the workplace is first registered with SGK and a workplace registration number is obtained.
As soon as you decide to hire, we collect the employee's identity details, position and salary, submit the start notification and archive the document. When an employee leaves, a termination notification is also submitted within the deadline with the correct exit code; this code affects the employee's entitlement to unemployment benefit and the company's severance obligations.
Five core items on a payslip
In Türkiye, payroll usually starts from the gross salary; the employee's share of SGK premiums, unemployment insurance premium, income tax and stamp duty are deducted to arrive at the net salary the employee takes home. The employer also pays its own share of SGK and unemployment insurance. As a result, the company's real staff cost is higher than the amount the employee receives.
Many Chinese managers are used to discussing salaries in terms of take-home pay, whereas in Türkiye employment contracts and payroll are usually based on the gross salary. Before hiring, we recommend clarifying whether salary will be discussed gross or net, and having us calculate the total cost. Every month we provide management with a payroll summary in Chinese showing each employee's gross salary, deductions, net pay and total cost to the company.
Leave, overtime and seniority: why records must be kept from day one
Turkish labor legislation has clear rules on annual leave, overtime and severance pay, and entitlements accumulate with seniority. Without regular timesheets and leave records, the severance calculation becomes open to dispute when an employee leaves. That is why we open the employee's file on their first day, recording the start date, salary changes, leave taken and overtime.
When an employee leaves, we calculate severance pay, notice pay and payment for unused leave based on the file, and explain the basis of each item to management in Chinese. An interpreter can be present when the termination documents are signed. If a labor dispute arises, we handle the process with our partner lawyers; well-kept records are the strongest evidence.
The difference between staff sent from China and local employees
For managers or technical staff sent from China to work in Türkiye, a work permit is usually obtained first, then SGK registration is completed and salary and premiums are calculated under Turkish legislation. Social security arrangements between Türkiye and China and the employee's insurance status in China can affect how this is applied. We clarify this for you under current legislation and run the work permit and payroll-SGK processes within a single plan.
For local employees, the topics management asks about most often are employment contracts, probation periods, pay rises and minimum wage changes. With every change in legislation, we inform management in Chinese of its impact on staff costs, and prepare the main clauses of the employment contract side by side in Turkish and Chinese. This way headquarters knows its staff costs clearly when budgeting.
First hires, staff from China or growing teams
Chinese companies hiring in Türkiye for the first time
Newly established companies preparing to hire their first employee. We register the workplace with SGK and submit the start notification before the employee begins. We also calculate the total staff cost for you.
Companies sending staff from China
Companies sending managers, engineers or technical staff from China. We run the work permit, SGK registration and payroll within one plan. We also explain the payslip to the employee in Chinese.
Companies with a growing headcount
As factory, store or project teams grow, so does the payroll and SGK workload. We handle hires and exits, timesheets and payroll every month. Management receives a summary in Chinese every month.
SGK notifications, payroll, tax returns and severance calculation
SGK hiring and termination
We register the workplace with SGK and submit the start notification before the employee begins. On departure, we submit the termination notification within the deadline with the correct exit code. All documents are archived.
Monthly payroll
We prepare the monthly payroll based on timesheet, overtime and bonus data. Gross salary, deductions, net pay and employer cost are calculated. Employees receive payslips.
Withholding tax and social security premium return
Every month we file the withholding tax and social security premium return, reporting employees' wages, taxes and premium days. After filing, we notify you in Chinese of the amount payable and the payment deadline. Records are kept in sync with the company's accounting.
Leave, overtime and seniority records
We open a file for each employee and record the start date, salary changes, leave and overtime. On departure, we calculate severance, notice pay and payment for unused leave. Every item comes with an explanation in Chinese.
Payroll and SGK for foreign employees
In connection with the work permit process, we handle SGK registration and payroll for staff coming from China. We clarify the applicable social security arrangement under current legislation. The payslip is explained to the employee in Chinese.
Summary in Chinese for management
Every month we provide a payroll summary and staff cost analysis in Chinese. When the minimum wage or SGK rules change, we explain the cost impact in advance. Headquarters can use it directly for budgeting.
Service summary and requirements
| Responsible | Licensed certified public accountant (SMMM) in our team |
|---|---|
| Scope | Turkish employees · foreign employees |
| Pricing | Monthly, based on number of employees |
| Service languages | Chinese · Turkish · English |
| Cities served | Mainly Istanbul; also Ankara, Izmir and other cities |
The final price and timeline depend on your documents and scope; we send a clear quote within 2 hours.
What you need to provide
- Employee ID document (Turkish ID card or passport, residence permit card)
- Position, start date and salary (stating whether gross or net)
- Monthly timesheet, overtime and bonus information
- Work permit details for foreign employees
Every step from workplace registration to termination
- 1
Workplace registration
The workplace is registered with SGK before the company hires its first employee. The pay date and timesheet method are set. A payroll calendar in Chinese is prepared.
- 2
Hiring
Once you decide to hire, you send the employee's identity details, position and salary. We submit the notification before the start date and open the personnel file. For foreign employees, the work permit is planned in parallel.
- 3
Monthly payroll and filing
Each month, timesheet and change information is collected and payroll is prepared. The withholding tax and social security premium return is filed. A payroll summary and amounts payable are sent to management in Chinese.
- 4
Termination
The termination notification is submitted within the deadline with the correct code. Severance entitlements are calculated from the file and explained to management in Chinese. When needed, an interpreter attends the signing.
Frequently asked questions
Can an employee start work first and be registered with SGK a few days later?
We don't recommend it. In Türkiye, the start notification is usually submitted before the employee begins work, and late notification can result in an administrative fine. Just send us the employee's details in advance, and we complete the notification before the start date.
How big is the difference between gross and net salary?
The difference depends on the salary level and that year's tax and premium rates; because income tax is calculated progressively, net pay can change from month to month during the year. Before hiring, we calculate the net pay and total cost to the company for a specific employee, so you go into salary talks prepared.
Must an employee from China also be registered with SGK in Türkiye?
Foreign staff working in Türkiye are generally registered with SGK; how this applies depends on the employee's insurance status in China and the arrangements between the two countries. We clarify this for you under current legislation and plan it together with the work permit process.
When is severance pay due?
Severance pay generally arises when an employee has reached a certain length of service and the employment contract ends in ways set out in the law, for example termination by the employer other than for gross misconduct, or resignation for a legally recognized reason. Whether it is payable and the amount depend on the reason for leaving and the seniority records. We calculate it from the file and explain it to you in Chinese.
How many days of annual leave does an employee get?
Under Turkish labor legislation, an employee becomes entitled to paid annual leave after reaching a certain length of service; the number of days increases with seniority, and there are additional rules for some groups of employees. We calculate each employee's available leave in their file and list it in Chinese in the annual summary.
What do we need to do when the minimum wage changes?
When the minimum wage and related premium bases change, we update payroll automatically and notify management in Chinese in advance of the impact on each employee and on the company's total cost. If your pay policy needs to change, we evaluate the options together.
Can salaries be paid in cash?
In Türkiye, wages are generally paid through a bank account, which also creates a clear payment record for accounting and audit purposes. We prepare a monthly payment list that matches the payroll exactly. We clarify the applicable rules for you under current legislation.
Can we have you handle payroll-SGK together with company accounting?
Yes, and that is the approach we recommend. Payroll and SGK data flow directly into company accounting, and the withholding tax and social security premium return is filed together with the monthly returns. Management receives a monthly report in Chinese showing accounting and staff costs together.
Tell us what you need in Türkiye
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