17 January 2025
Implementation of Discounts on SSI Administrative Fines
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An amendment made in Article 102 of Law No. 5510 on Social Insurance and General Health Insurance stipulates that employers who submit declarations and documents to the Institution after the legal deadline, under certain conditions, will receive a discount equivalent to one fourth of the administrative fine amount. This regulation is understood to aim at encouraging employers to fulfill their obligations retroactively.
Scope and Application
The discount is applied when declarations and documents are submitted to the Institution outside the legal deadline, provided that the following conditions are met:
- Voluntary Declaration: The relevant declarations or documents must be submitted voluntarily by the employer to the Institution without any official warning or as a result of an inspection.
- Submission Within 30 Days: After the legal deadline has passed, the documents must be submitted to the Institution within a 30-day period.
- Payment of the Fine Within 15 Days: The administrative fine issued must be paid within 15 days following the date of notification.
Covered Acts
The following acts are eligible for a discount on administrative fines under this regulation:
- Failure to Submit Insurance Employee Registration Declaration and Exit Declarations and Workplace Declarations Within the Legal Deadline,
- Failure to Report Events Causing Occupational Disability to Public Administrations Within the Legal Deadline,
- Failure to Report Contractors Engaged Through Tenders by Public Administrations, Institutions Under Banking Law No. 5411, and Other Institutions and Organizations Established by Law, Along with Their Addresses, Within the Legal Deadline,
- Failure to Report Individuals Identified as Uninsured by Public Administrations and Banks Within the Legal Deadline,
- Failure to Submit Notifications to Trade Registry Offices Within the Legal Deadline Regarding the Number of Insured Employees to Be Employed and Their Employment Start Dates During the Company Formation Phase,
- Failure to Provide Information and Documents Related to Building Permits or Equivalent Processes, as Well as, If Applicable, Employment-Related Information That Forms the Basis for Their Provision, Within the Legal Deadline by Governorates, Municipalities, and Other Public and Private Legal Entities Authorized to Issue Permits.
Application
When the declaration or document is voluntarily submitted by the concerned parties within 30 days after the legal deadline and the relevant fines are paid within 15 days from the day following the notification date, the fines stipulated by the Law will be applied at one fourth of their original amount.
Due to the requirement that the administrative fines covered within this scope must be paid in advance within 15 days from the notification date, according to the fifth paragraph of Article 102 of Law No. 5510, which states: "If administrative fines are paid in advance within 15 days from the notification date without objecting to the Institution or resorting to judicial remedies, three fourths of them shall be collected," only one fourth of the notified fine amount will be collected.
In this case, the administrative fine to be applied will have mathematically 3/16 paid. When calculated as a percentage, an 81.25% discount will be applied to the total fine amount, and 18.75% of the fine will be paid.
The high rate of this discount not only increases the motivation of employers to voluntarily fulfill their obligations but also allows them to quickly comply with their penal obligations.
Example
If an employer voluntarily submits the employment entry declaration of an insured person who started working on January 10, 2025, on January 14, 2025, the administrative fine based on the gross minimum wage in effect on the date the act was committed, which is 26,005.50 TRY, will be notified to the employer because the declaration was submitted within 30 days after the legal deadline.
In this case, if the administrative fine is paid within 15 days from the notification date without objecting to the Institution or resorting to judicial remedies, the fine amount will be calculated as follows:
- 26,005.50 TRY × 1/4 = 6,501.37 TRY (one fourth of the fine)
- 6,501.37 TRY × 3/4 = 4,876.02 TRY (amount to be paid)
In this scenario, while the employer would need to pay 26,005.50 TRY due to the committed act, by paying the administrative fine of 4,876 TRY, which corresponds to 18.75% of the aforementioned amount, the employer benefits from the discount. Consequently, an 81.25% discount is applied to the total fine amount that the employer is required to pay.
Should you have any queries or need further details, please contact us.
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