SGK or Bağ-Kur? Turkey's Social Security System Explained

SGK or Bağ-Kur? is one of the most common questions asked by employees and entrepreneurs trying to understand Turkey's social security system. When Law No. 5502 on the Social Security Institution took effect in 2006, the Social Insurance Institution (SSK), Bağ-Kur, and the Pension Fund (Emekli Sandığı) were merged under a single roof. However, this merger did not eliminate the differences between insurance statuses. Today, the distinction between 4A (formerly SSK) and 4B (formerly Bağ-Kur) still applies, and the contribution rates, retirement conditions, and healthcare rights under each status remain different from one another.

In this article, we'll take a detailed look at the key differences between SGK and Bağ-Kur, the advantages and disadvantages of each system, and which one is better suited for entrepreneurs versus employees.

What Is SGK (4A)?

4A insurance status under SGK refers to individuals who work for an employer. Formerly known as SSK, this status covers the vast majority of private-sector employees.

The key characteristics of being a 4A insured person are:

• Employer dependency: Work is carried out under an employment contract, and insurance contributions are paid by the employer.
• Shared contributions: Part of the insurance premium is paid by the employer and part by the employee.
• Regular reporting: The employer regularly reports the employee's SGK registration and premium payments.
• Severance and notice pay: Employees under 4A status are entitled to compensation rights arising from labor law.

4A insured individuals are covered under short-term insurance branches (occupational accidents, occupational diseases, sickness, maternity), long-term insurance branches (disability, old age, death), and general health insurance.

What Is Bağ-Kur (4B)?

Bağ-Kur, known today as 4B insurance status, covers individuals who work independently on their own behalf and account. This group includes tradespeople, self-employed professionals, company partners, and those working on their own account in agriculture.

The key characteristics of 4B insurance status are:

• Independent work: Activity is carried out without being tied to any employer.
• Contribution responsibility: The insured person pays the entire premium themselves.
• Tied to tax registration: Insurance status generally begins with tax registration.
• Flexible work: Working hours and conditions are entirely at the individual's own discretion.

4B insured individuals are also covered under long-term insurance branches and general health insurance. However, some short-term insurance branches (such as occupational accidents and occupational diseases) apply only to a limited extent.

What Are the Differences Between SGK and Bağ-Kur?

Understanding the differences between SGK and Bağ-Kur is critical to making the right social security choice. Here are the key distinctions between the two systems:

Contribution Rates and Payment Method

For 4A insured individuals, the contribution burden is shared between the employer and the employee. The employer pays approximately 20.5 percent of the total contribution, while the employee pays 14 percent. This reduces the amount that comes directly out of the employee's pocket.

For 4B insured individuals, the entire contribution is paid by the person themselves. The contribution base is calculated based on the income declared by the insured person. The contribution amount is determined by selecting a bracket between the minimum and maximum earnings limits. This can create financial planning challenges, particularly for entrepreneurs with irregular income.

How Do Retirement Conditions Differ?

Retirement conditions form one of the most important dimensions of the SGK-versus-Bağ-Kur debate. Both statuses require certain age, contribution-day count, and insurance-duration conditions to be met for retirement.

4A (SGK) retirement conditions:

• Age 58 for women, 60 for men (increasing gradually in stages)
• At least 7,200 contribution days
• 25 years of insurance duration

4B (Bağ-Kur) retirement conditions:

• Age conditions are the same as 4A
• At least 9,000 contribution days
• 25 years of insurance duration

The most important difference to note is the contribution-day requirement. 4B insured individuals must have paid 1,800 more contribution days than 4A individuals in order to retire. This corresponds to roughly 5 additional years of contribution payments.

What Are the Conditions for Accessing Healthcare Services?

Insured individuals under both statuses can access healthcare services under general health insurance. However, there is an important difference:

• 4A insured individuals: Can access healthcare services if at least 30 days of contributions have been reported within the last 120 days. Healthcare rights continue for another 10 days after leaving a job.
• 4B insured individuals: To access healthcare services, they must not have more than 60 days of outstanding contribution debt. 4B insured individuals with contribution debt cannot benefit from healthcare services.

This creates a serious risk for tradespeople and self-employed professionals experiencing cash-flow difficulties. A delay in contribution payments can directly mean the loss of health coverage.

Which Type of Insurance Is More Advantageous for Entrepreneurs?

One of the most important considerations for entrepreneurs when choosing their social security status is cost management. Since the entire premium under 4B status is paid by the individual, this expense flows directly into business costs.

Advantages of 4B for entrepreneurs:

• Flexibility of independent work
• The ability to set the contribution bracket based on income level
• Status as the owner of one's own business

Disadvantages of 4B for entrepreneurs:

• Higher contribution-day requirement (for retirement)
• Loss of healthcare coverage in case of contribution debt
• Limited access to short-term insurance branches
• No entitlement to severance or notice pay

Entrepreneurs, especially when setting up company structures, should carefully plan their social security costs. The insurance status of joint-stock company partners and limited company partners can also differ.

What Advantages Does SGK (4A) Provide for Employees?

For those working for an employer, 4A status generally offers more comprehensive coverage:

• Lower individual contribution burden: The employer covers a significant portion of the premium.
• Lower contribution-day requirement: The 7,200 days required for retirement is more attainable compared to 4B.
• Employment protection rights: Additional protections such as severance pay, notice pay, and unemployment insurance are available.
• Comprehensive short-term insurance: Occupational accident, occupational disease, sickness, and maternity insurance are all fully applied.

These advantages make 4A status more appealing for employees. However, it is also important for employees to know their own rights, monitor deductions on their payslips, and regularly check their contribution-day counts.

Can You Switch Between 4A and 4B?

Yes, it is possible to switch between 4A and 4B statuses. An employee who starts their own business can move from 4A to 4B, while a tradesperson who starts working at a company can move from 4B to 4A.

Points to consider during the transition process:

• Service consolidation: Contributions paid under different statuses can be combined when calculating retirement.
• Last seven years rule: When calculating the retirement pension, the status under which the most contributions were paid in the last seven years is taken as the basis. For this reason, transitions made close to retirement can directly affect the pension amount.
• Contribution debt check: When switching from 4B to 4A, the status of any outstanding old contribution debts should be checked.

How Can Businesses Manage Employee Insurance Costs?

Employee insurance costs represent a significant portion of personnel expenses for businesses. The SGK employer share is approximately 20.5 percent of the gross salary, and this amount must be paid regularly every month, excluding incentives.

To effectively manage insurance costs, businesses are advised to take the following steps:

• Cost tracking: Keep detailed records of monthly insurance expenses for each employee.
• Incentive tracking: Check your eligibility for SGK contribution incentives (such as youth employment, disability employment, and R&D incentives).
• Payroll management: Correctly calculate contribution bases to avoid potential administrative fines.
• Use digital tools: Manage insurance payments, personnel expenses, and payroll processes from a single platform using expense management software.

Managing insurance costs, travel expenses, and other corporate expenditures with a holistic perspective is critical for businesses' financial sustainability.

Frequently Asked Questions

Are SGK and Bağ-Kur the same thing?

No, SGK (Social Security Institution) is the umbrella institution covering all types of insurance status. Bağ-Kur, on the other hand, was formerly the insurance system for independent workers and continues today as 4B status under SGK.

Is 4A or 4B more advantageous?

This depends on the individual's type of work. For those employed by an employer, 4A is generally more advantageous, offering a lower individual contribution burden and fewer required contribution days for retirement. Entrepreneurs who start their own business are required to fall under 4B.

How much is the Bağ-Kur contribution?

The 4B (Bağ-Kur) contribution varies depending on the selected contribution base. As of 2026, the monthly contribution amount based on the minimum contribution base is determined according to the current minimum wage and contribution rates. It is recommended to check SGK's official website for up-to-date figures.

Can contributions be paid for both 4A and 4B at the same time?

No, it is not possible to be insured under both 4A and 4B at the same time. If a person meets both conditions, 4A status takes priority. In other words, a person who works at a workplace while also running a trade business is considered insured under 4A.

Does SGK contribution debt prevent retirement?

Yes, contribution debt, particularly for 4B insured individuals, prevents a retirement application from being accepted. All contribution debts must be paid off for a retirement application to be approved. Since contribution debt for 4A insured individuals is generally the employer's responsibility, the employee is not directly blocked as a result.

Can 4A and 4B contributions be combined?

Yes, contributions paid under 4A and 4B during different periods can be combined through service consolidation. However, when calculating the retirement pension, the predominant status in the last seven years is taken into account.

Conclusion: Make an Informed Choice for the Right Social Security Status

There is no single correct answer to the question of SGK versus Bağ-Kur. Your type of work, income level, and career plans determine which social security status is right for you. What matters most, regardless of status, is paying your contributions regularly, tracking your contribution-day count, and planning for retirement early.

For businesses, properly managing employee insurance costs is essential for profitability and sustainability. For businesses that want to track personnel expenses, insurance payments, and corporate expenditures from a single platform, Masraff offers a comprehensive expense management solution. With Masraff, you can easily manage all your corporate expenses digitally and strengthen cost control.