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:

1. 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.

2. 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.

3. 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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