Hiring your first employee is an exciting step, but it brings new obligations. Missing or late notifications can lead to administrative fines. The list below sets out the steps from before hiring to the first salary payment.
Before the first day
- Workplace registration: If you employ staff for the first time, your workplace must be registered with the Social Security Institution (SGK).
- Hiring notification: As a rule, the employee must be notified to SGK before starting work.
- Written employment contract: State the role, salary, working hours and probation period clearly.
- Personnel file: Collect ID, diploma and, where required, a health report and criminal record.
- Occupational health and safety: Check health-and-safety service and training obligations for your hazard class.
Setting the salary
Understanding the difference between gross and net pay is the first step to budgeting correctly. Employee social security, unemployment insurance, income tax and stamp duty are deducted from gross pay to reach net pay. Employer cost adds the employer’s social security and unemployment insurance shares. Remember the tax exemptions applied to minimum-wage-level earnings.
Check incentives
You may benefit from social security incentives depending on the employee’s age, gender, unemployment period, disability status and workplace region. Check eligibility before hiring; some incentives cannot be claimed retroactively.
Every month
- Send attendance (days worked, leave, sick days, overtime) to your accountant at month end.
- Approve the payroll and pay the net salary to the employee’s bank account.
- Pay the amounts declared on the withholding and social security return by the deadline.
- Give the payslip to the employee and keep a signed copy.
Common mistakes
- Employing without insurance during probation (probation is insured employment)
- Paying part of the salary off the books
- Not keeping annual leave and overtime records
Ankara Muhasebem runs payroll and social security on your behalf from your first employee and checks incentive eligibility for every new hire. Rates and exemptions are updated every year, so always calculate with current values.
