20.11.2023

Authors: Beyza Büyükağaçcı, Enis Kadıoğlu

The implementation of the occupation code, which was determined differently for all occupational groups by the Social Security Institution (“SSI”) in 2012, became mandatory as of January 1, 2018. In this article, the obligations of the employer regarding occupational code notification and the sanctions envisaged in case of the violation of these obligations within this scope will be discussed.

In accordance with Article 16 of Law No. 6728, which was added to Article 98 of Income Tax Law No. 193, the withholding declaration as specified in tax laws and the monthly pension that shall be given in accordance with the Social Security and General Health Law No. 5510 dated 31.05.2006 ("Law") are regulated. The premium and service certificate were included in a single scope and the Withholding and Premium Service Declaration was created. Subsequently, the procedures and principles of the application were determined with the General Communique on Withholding and Premium Service Declaration. Within the scope of the dissemination of the gradual transition, the obligation imposed primarily covering certain provinces began to be implemented throughout Turkey as of 01.07.2020.

In this context, the occupational code implementation, which was introduced by SSI in 2012, was included in the scope of mandatory reporting by employers as of January 1, 2018, and employers became obliged to notify SSI the occupational code appropriate to the work they will actually do or are doing in the workplace when hiring employees.

At the same time, regulated in subparagraph (n) of the first paragraph of Article 102 of the Law; “An administrative fine of one tenth of the minimum wage is imposed for each insured whose occupational name and code are falsely reported, not to exceed the monthly minimum wage, for each workplace that falsely declares the occupational name and code appropriate to the work actually performed by the insured in their workplaces in the withholding and premium service declaration.” Pursuant to the provision, it has been regulated that employers will be subject to an administrative fine if they falsely declare the occupation code appropriate to the work actually performed by their employees in the workplace in the premium service declaration. It should be noted that the administrative fine in question is applied on a workplace basis and for each declaration period, and the implementation has become effective firstly for the declarations for January 2018.

In accordance with Article 59 of the relevant Law, the employer checks whether the occupational name and code of the employee's actual job is contrary to reality or not, through the officers appointed by the Social Security Institution for inspection and control purposes.

It should be explained within the scope of the General Letter titled "Proceedings to be Taken Regarding Changes in Occupation Name and Code" dated 11.06.2021 published by the Social Security Institution;

1.  If an employer requests retroactive changes to the occupational name and code of the insured employee, this request of the employer is accepted without being subject to inspection by the authorized institution and no administrative fine is imposed on the employer for this reason.

2.   If a violation is detected as a result of the insured's request for a change of occupational name and code, as well as the notifications and complaints made to the SSI that the occupational name and code have been reported incorrectly, administrative fines are imposed on a workplace basis and for each declaration period.

3.   If it is determined, through court decisions or as a result of investigations, audits, and inspections conducted by audit officials of public authorities in accordance with the legislation, or from documents issued or information obtained by public institutions and organizations or banks, that the occupational name and code have been inaccurately reported, enforcement actions are taken based on these findings. Administrative fines are imposed on a workplace basis and for each declaration period in accordance with these determinations.

In conclusion;

Pursuant to the regulation made in Law No. 5510, employers have become obliged to notify the SSI of the occupation code appropriate to the work that they will actually do or are doing in the workplace when hiring employees, and if they fail to fulfill this obligation, they may face administrative fines.

Since the provision of the Law came into force on 01.01.2018, employers are subject to administrative fines by taking into account the date and provinces where the Withholding and Premium Service Declaration was implemented.

In case the employer requests a change in the current situation or past occupational name or occupational code of the insured, the employer's request will be processed without being referred to an audit and administrative fines will not be imposed.

In case of a request for a change of the insured's occupational name and code and a notification and complaint to the Social Security Institution that the occupation and code have been reported falsely, the complaint and notification will be submitted to the audit. If it is determined that the false notification has been made according to the audit result to be carried out by the relevant institution, administrative fines will be imposed.