What is Bağ-Kur?Is Bağ-Kur a Fixed Fee or Income-Dependent?
What is Bağ-Kur?Is Bağ-Kur a Fixed Fee or Income-Dependent?
Bağ-Kur (short for “Bağımsız Çalışanlar Kurumu,” literally the Social Security Agency for the Self-Employed) is Turkey’s social security system for:
Sole proprietors,
Self-employed individuals, and
Certain partners/shareholders in companies.
It covers retirement, healthcare, and other social security benefits for those who are not insured under the standard employee (4A/SSK) scheme.
Is Bağ-Kur a Fixed Fee or Income-Dependent?
Bağ-Kur premiums are not purely fixed; instead, they are calculated based on a “premium base” that is tied to the minimum wage and the maximum wage base set by law. Here’s how it works:
Minimum and Maximum Premium Bases
Each year, the government sets a minimum and a maximum earning base on which Bağ-Kur premiums can be calculated.
You can choose to pay Bağ-Kur on any declared level between this minimum and maximum base.
Monthly Premium Amount
The premium rate is applied to the chosen base.
Hence, the actual amount of Bağ-Kur you pay each month depends on which level you declare within the allowed range.
There is a lowest possible monthly premium and a highest possible monthly premium.
Income-Dependent in Practice
While Bağ-Kur itself doesn’t automatically track your monthly income the same way an employee’s payroll taxes do, you do have some discretion in selecting the premium base (within the min–max band).
For many sole proprietors, it’s common to choose the minimum base to keep monthly costs lower, although doing so typically results in lower retirement benefits later.
Therefore, Bağ-Kur is not a flat, one-size-fits-all fee. It is calculated according to a base that you select within statutory limits and is thus somewhat income-dependent (or at least can be adjusted according to your preference, within the legally permitted range).
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