Three things concern an employer when an employee produces a sickness report: whether the employee is paid for those days, when the notification has to be made, and what happens to the contract if the absence continues. Each is answered in different legislation, and the mistake made most often in practice is assuming the employer pays the benefit.
This page covers the conditions and rates for temporary incapacity benefit, the employer’s notification duties and their deadlines, how sick days appear in payroll and in the premium day count, and the right of termination that arises when an absence runs long.
Temporary incapacity is a period of absence caused by illness or accident, for which the social security institution pays a benefit. Disability is a permanent loss of working capacity at the rate defined in the legislation, and results in a disability pension. They involve different conditions, different procedures and different payments.
This page deals with temporary incapacity — what is called a sickness report in everyday use. Permanent incapacity and disability are assessed separately.
Who Pays, and on What Conditions
Sick days are paid by the social security institution rather than by the employer. The employer’s obligation is not to pay but to notify that the employee did not work on those days.
| Situation | Waiting period | Premium condition |
|---|---|---|
| Illness | No benefit for the first two days; payment begins on the third | At least 90 days of short-term insurance premiums in the year before the absence begins |
| Work accident | None; paid from the first day | Not required |
| Occupational disease | None; paid from the first day | Not required |
| Maternity | None | At least 90 days in the year before the birth |
| Type of treatment | Benefit rate |
|---|---|
| Outpatient | Two thirds of daily earnings |
| Inpatient | One half of daily earnings |
Daily earnings are found by dividing the earnings subject to premium in the defined period before the absence by the number of days. The benefit is therefore lower than the employee’s net salary, and the gap widens for employees paid above the premium ceiling.
In case of illness, temporary incapacity benefit is paid from the third day of the absence. No payment is made for the first two days, and the legislation does not oblige the employer to cover them either.
Many employers choose to pay those two days. That payment is treated as salary rather than a gratuity: it enters earnings subject to premium and those days are added to the premium day count. Where it is written into the contract or an internal policy it becomes an established practice, and withdrawing it unilaterally amounts to a substantial change in working conditions.
The Employer’s Notification Duties
- Monitor reports in the systemReports approved by health institutions are transmitted electronically to the employer screen, including those the employee has not mentioned. Checking before the monthly return is approved prevents the fine that an unnotified report would produce.
- Enter the non-working notificationThe system is notified that the employee did not work on the reported days. The notification is made in the month following the end of the absence, within the period for filing the withholding and premium service return.
- Show the missing days in the returnNo premiums or days are declared for the reported period; the reason for the missing days is stated in the return. Supporting documents are kept at the workplace and produced on request.
- Prepare payroll accordinglyNo wage accrues for the reported days. Where the employer makes a top-up payment, that amount is shown as salary and is subject to premiums.
- Track the period if the absence continuesWhere the absence exceeds the notice period by six weeks, the employer’s right to terminate for just cause arises. Because that period varies with length of service, it has to be tracked per employee.
The practice of submitting documents for missing days as an attachment has been discontinued. The reason for the shortfall is stated in the return itself, while the doctor’s report, unpaid leave record, part-time contract and other supporting documents are kept at the workplace and produced on inspection.
The change does not remove the obligation to retain them; it changes only where they go. Missing days that cannot be evidenced on inspection may be treated as undeclared employment.
Working While on Sick Leave
Entitlement to temporary incapacity benefit depends on the insured person not working during the reported days. Where an employee is put to work despite the report, no benefit arises.
The heavier consequence is this: if working despite the report lengthens the treatment or worsens the employee’s condition, the treatment costs incurred by the institution may be recovered from the employer. “The employee wanted to come in” does not change that outcome; not putting a reported employee to work is the employer’s obligation.
When the Absence Runs Long
An employer may terminate where an absence continues, but the right is tied to a period and does not mean termination without compensation.
| Length of service | Notice period | Right arises after |
|---|---|---|
| Under 6 months | 2 weeks | 8 weeks |
| 6 months – 1.5 years | 4 weeks | 10 weeks |
| 1.5 – 3 years | 6 weeks | 12 weeks |
| Over 3 years | 8 weeks | 14 weeks |
- Where the absence exceeds the notice period for the employee’s service by six weeks, the employer may terminate for just cause
- Severance remains payable on that termination; the entitlement is not lost
- Notice compensation is not payable, because the termination rests on just cause
- A termination before the period has run does not rest on just cause
- Work accidents and occupational diseases are assessed differently
- At workplaces within job security, the valid reason question is assessed separately
- Because the period varies with service, tracking is done per employee
- The right arising does not mean it has to be exercised
Payroll and Premium Treatment
No top-up paid
- Wage
- No accrual for the reported days
- Premium days
- Not declared; shown as missing days
- Reason
- Stated in the return as sick leave
- Employee receives
- The social security benefit only
Top-up paid
- Wage
- The amount paid is treated as salary
- Premium days
- Days paid are included in premiums
- Tax
- Subject to income and stamp duty withholding
- Risk
- Once established it cannot be withdrawn unilaterally
An employer paying full salary for the reported days may claim the benefit the employee receives from the institution. That arrangement should be written into the contract or an internal policy; otherwise the employee receives both the salary and the benefit, and recovering it becomes a dispute.
Common Mistakes
- Assuming the employer pays the benefit. Sick days are paid by the institution; the employer’s obligation is notification.
- Treating the first two days as compulsory, or paying them without showing them in payroll. Where paid, the amount is salary and attracts premiums.
- Entering the non-working notification late. It produces an administrative fine and delays the employee’s benefit.
- Waiting for the employee to report the absence. Reports appear on the employer screen and should be checked before the return is approved.
- Putting a reported employee to work. No benefit arises, and treatment costs may be recovered from the employer if the treatment is prolonged.
- Sending supporting documents to the institution. That practice was discontinued; documents are kept at the workplace.
- Terminating before the period has run. The right arises where the absence exceeds the notice period by six weeks.
- Not paying severance on that termination. Just cause removes notice compensation, not severance.
Frequently Asked Questions
Does the employer pay wages for sick days in Turkey?
Is anything paid for the first two days?
How much is the benefit?
Is there a premium day condition for sickness?
When must the non-working notification be made?
Should supporting documents be sent to the institution?
Can an employee on sick leave come to work if they want to?
Can the contract be terminated if the absence continues?
As the Ozbek CPA team, we handle the payroll and social security side of sickness reports in Turkey — monitoring reports in the system, entering non-working notifications on time, showing missing days correctly in the return, structuring payroll and the premium base where a top-up is paid, and tracking the termination period per employee where an absence runs long. See also our pages on payroll services, working hours, employment contracts and Turkish social insurance law. Contact us.
