Severe Penalty for Employers Paying Salaries in Cash

Inspections are being increased for employers who show their employees as minimum wage earners on the payroll and pay the remaining salary in cash. Employers who do not comply with the obligation to pay through banks will face administrative fines and SGK penalties. This practice is said to cause losses in employees' retirement salaries, severance pay, and other social security rights.SGK expert İsa Karakaş stated that the scope of the obligation to pay wages through banks has been significantly expanded in recent years. Karakaş noted that with the amendments made to the Code of Obligations, Press Labor Law, Maritime Labor Law, and Labor Law, it has become mandatory to make wage and compensation payments through banks. The spirit of the law is to establish transparency. With this application, the employer can easily prove that they have fulfilled their debt.