| TAX CIRCULAR: 2026-88 | DATE: 26.06.2026 |
In parallel with the amendments made in the Social Insurance Transactions Regulation, SGK has updated the minimum labor and premium calculation rules in construction and tender works with Circular No. 2026-16.
The details of the new rules put into practice within the scope of the relevant circular are summarized below:
1. “Arithmetic Mean” Era in Cost Calculation
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The average cost method has now been adopted in calculating the cost of constructions completed in years subsequent to the starting year.
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Excluding the year the construction is completed, the arithmetic mean of the unit cost values for all years between the start and end years will be taken into account.
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For all procedures ending on or after May 16, 2026, or ending before this date but not finalized at the administrative stage, the investigation will be conducted according to the arithmetic mean calculation.
2. Partial Progress Payment and Clearance Certificate Conditions
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Even if the provisional acceptance of the work is done completely, if the total progress payment amount is unknown, an investigation can be made over the progress payment paid upon the employer’s request; however, a clearance certificate will not be issued until the exact total amount is notified.
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In special construction works, upon the employer’s request, a separate investigation can be made for the completed parts, and a partial clearance certificate can be issued. The surface areas and earnings subject to premium of the sections granted a partial certificate will not be taken into account in subsequent final calculations.
3. Separate Calculation Procedures for Different Permits
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Even if carried out from a single workplace file; when construction works with multiple building permits, different building classes/groups, or different minimum labor rates are completed, a separate investigation procedure will be conducted for each permit, and the resulting differences will be compared with the total earnings.
4. Ex-Officio Investigation Procedure (2-Year Rule)
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Starting from the last withholding and premium service declaration period submitted in May 2026 and onwards, workplace files with no declaration submitted for at least 2 years will be removed from the scope of the Law and will be directly subjected to an ex-officio investigation procedure by SGK.
