Financial Advisory · SGK and Payroll
The right calculation for every employee,
on-time notification.
From monthly payroll calculations to SGK premium declarations, from severance pay to minimum labour compliance checks; every financial dimension of workforce management is handled under one roof, in full regulatory compliance.
Professional Framework
PAYROLL
SGK and Labour Rights Management
Scope of Service
Payroll management is not simply about calculating salaries for employees. Every monthly payroll incorporates income tax withholding, SGK premium calculations, unemployment insurance, and stamp tax calculations simultaneously. The cost of a single error jeopardises both employee satisfaction and the company's legal standing.
Employee entry and exit notifications, severance and notice pay calculations, missing day declarations, and minimum labour compliance checks all require the SGK processes to be managed with the same diligence as the payroll itself. Akbaş takes ownership of all these processes regardless of headcount.
Labour costs represent a significant line item in any company budget. Accurately calculated payroll and timely notifications eliminate legal risk while optimising employer costs.
Service Areas
Six components, for every employee.
The scope of SGK and payroll services extends far beyond monthly salary calculations. The components below are managed every period, regardless of employee count.
Monthly Payroll Calculation
Gross-to-net salary calculation for each employee, income tax bracket tracking, minimum living allowance offset, and preparation of individual pay slips.
All employee types; full-time, part-time, fractional
Individual pay slip + consolidated payroll list
SGK Premium Declarations (APHB)
Accurate preparation of the monthly premium and service document and its timely submission to the SGK system; verification of premium bases.
26th of the following month
All active employees
Employee Entry and Exit Notifications
SGK e-declaration entry notification upon hiring; exit notification upon termination and registration within statutory deadlines.
Before or on the first day of employment
Within 10 days
Severance and Notice Pay
Severance and notice pay calculations upon contract termination; determination of accrued annual leave entitlements and other labour rights.
Severance, notice, accrued annual leave pay
Last gross salary × length of service
Missing Day Notification
Tracking and reporting of missing day declarations arising from sick leave, unpaid leave, absenteeism, and partial employment.
Sick leave, unpaid leave, absenteeism
Together with monthly payroll
Minimum Labour Compliance Check
Verification that the declared premium earnings meet the minimum labour threshold; proactive elimination of non-compliance risk.
Companies with building permits and commercial enterprises
Compliance report and action plan
Working Model
The payroll cycle,
with the same rigour every month.
The payroll process is not simply a monthly calculation. It is a comprehensive management cycle spanning employee movement tracking, SGK notifications, severance calculations, and minimum labour compliance checks.
Collecting Employee Data and Timesheets
Working days, overtime, leave, and absenteeism records for the month are collected. The notification calendar is updated for any employees starting or leaving during the period.
Payroll Calculation and Base Determination
Gross-to-net salary is calculated for each employee. Income tax brackets, SGK premium base, unemployment insurance, and minimum living allowance amounts are computed. The payroll list is prepared.
SGK Declarations and E-Return Submission
The monthly premium and service document is submitted to the GIB-SGK system. The SGK declaration included in the combined withholding return is also completed in the same period. Deadline: the 26th.
Labour Rights and Compensation Calculations
For any terminations during the month, severance, notice pay, and accrued annual leave entitlements are calculated. Required notifications are filed within the statutory deadlines.
Monthly Report and Cost Summary
The monthly payroll summary, employer cost breakdown, and total SGK premium are reported. Workforce change planning for the following month is assessed.
Practical Example
A payroll month,
tracked step by step.
The calendar below illustrates a typical monthly payroll cycle for a service company with 18 employees. Dates are based on Labour Code No. 4857 and SGK Code No. 5510.
Days 1–5: Data Collection
- Employee timesheet and absenteeism records
- Entry/exit notifications (if applicable)
- Submission of sick leave and leave forms for the month
Days 5–20: Payroll Preparation
- Gross-to-net salary calculations
- Minimum living allowance and income tax bracket updates
- Severance and notice pay calculations (if applicable)
Days 20–25: Control and Approval
- Review of the payroll list
- Employer approval process
- Payment order preparation
Days 25–26: Notification
- Combined withholding/premium service return: by the 26th
- Bank payment transfer
- Distribution of pay slips to employees
NOTIFICATION DEADLINES
Critical dates for employers.
Late notification obligations result in administrative fines. The employee entry notification is especially critical; it must be filed on the same day.
Frequently Asked Questions
Common questions about
SGK and payroll services.
How is severance pay calculated?
Entitlement to severance pay requires at least one year of continuous employment and certain contract termination conditions. The calculation is based on the last gross salary (including all benefits) multiplied by the number of years worked. The ceiling amount, which was abolished in 2002, remains in effect today. As calculation errors carry both legal and financial risk for the employer, consulting a specialist is strongly advised.
When must the SGK employee entry notification be filed?
Code No. 5510 requires employment to be declared before the start date or, at the latest, on the first day of work. An employee cannot be taken on without the notification; acting otherwise constitutes undeclared employment and leads to serious administrative fines. Different notification periods may apply in certain sectors (construction, sugar, and agricultural industries). Akbaş manages all entry notifications in real time.
Why does minimum labour non-compliance create problems?
SGK stipulates that the declared premium base for certain activities must not fall below a specified minimum. This rule applies especially to projects under building permits and commercial enterprises. If the declared base falls below the minimum labour threshold, SGK assesses a differential premium and an administrative fine. Regular checks throughout the year eliminate this risk before it materialises.
Is the employer required to distribute pay slips to employees?
Under Labour Code No. 4857, the employer is required to provide the employee with a signed or stamped document showing how their wage was calculated. This obligation may be fulfilled via a paper pay slip or an e-payroll. E-signature or e-payroll systems satisfy this requirement digitally. Failure to deliver the pay slip to the employee may constitute evidence against the employer in labour disputes.
What documents must be prepared when an employee leaves?
Documents that must be prepared upon termination include the employee exit declaration (via SGK e-declaration), severance and notice pay calculation breakdowns, accrued annual leave pay calculation, and the release form. All of these documents must be drawn up within the statutory deadlines. Failure to observe the notice period gives rise to a notice pay obligation. Akbaş manages the entire contract termination process with complete documentation.
payroll advisory
Let us organise your payroll management together.
Regardless of headcount, we invite you to a meeting to bring your monthly payroll and SGK processes under fully compliant professional management.
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Manage your labour costs
correctly.
Payroll errors undermine both employee trust and legal compliance. We invite you to a meeting to bring your monthly payroll and SGK processes under professional management.