Turkey has a large, young workforce and a payroll framework that’s more complex than many international employers expect. SGK social security contributions, cumulative income tax withholding, stamp tax, and mandatory private pension enrolment all run in parallel. Getting each component right from day one keeps you compliant and avoids penalties. This guide covers everything you need to run Turkish payroll in 2026.
Payroll basics
Turkish payroll runs monthly. Wages are due at the end of the month, paid in Turkish Lira (TRY). Standard working hours are capped at 45 hours per week and 9 hours per day, with the standard working week running Monday through Friday.
There’s no standardised gross salary structure in Turkey. An employee’s taxable gross is made up of their base salary plus any allowances and benefits. Benefits in kind such as a company car, housing, or meal allowances are generally included in taxable income unless a specific statutory exemption applies.
Minimum wage in 2026
The minimum wage applies to all employees and is set for the full calendar year.
| Measure | 2026 figure |
|---|---|
| Gross monthly minimum wage | TRY 33,030.00 |
| Net monthly minimum wage | TRY 28,075.50 |
| Daily gross minimum wage | TRY 1,101.00 |
| Effective dates | 1 January – 31 December 2026 |
The total monthly employer cost for a minimum wage employee is approximately TRY 40,214.03 after accounting for the TRY 1,270 SGK employer support credit.
Employee deductions
Several contributions are deducted from an employee’s gross salary each month. You calculate, withhold, and remit all of these on the employee’s behalf.
Social security and unemployment insurance
| Contribution | Rate |
|---|---|
| SGK (social security) | 14% of gross |
| Unemployment insurance | 1% of gross |
Stamp tax
A stamp tax (damga vergisi) of 0.759% is levied on the gross salary each month. This is withheld from the employee and remitted to the tax authority.
Bes private pension
Turkey’s Bireysel Emeklilik Sistemi (BES) is a mandatory auto-enrolment private pension scheme. Employees under 45 are automatically enrolled at a contribution rate of 3% of gross salary. Employees can opt out within the first two months of enrolment. If they don’t opt out in that window, contributions continue until they choose to exit.
Income tax
Income tax is withheld monthly using the cumulative bracket method. As the year progresses and cumulative income crosses each bracket threshold, the applicable rate increases for the portion above that threshold. The 2026 employment income tax brackets are:
| Annual taxable income (TRY) | Tax rate |
|---|---|
| Up to 190,000 | 15% |
| 190,001 – 400,000 | 20% |
| 400,001 – 1,500,000 | 27% |
| 1,500,001 – 5,300,000 | 35% |
| Over 5,300,000 | 40% |
There is a minimum wage income tax exemption: the amount of income tax attributable to the TRY 33,030 minimum wage is subtracted from each employee’s monthly tax liability. Minimum wage earners pay no income tax as a result. Higher earners receive a partial reduction that diminishes as income rises.
Employer contributions
On top of the gross salary, you pay employer-side contributions directly. These don’t reduce the employee’s take-home pay but form part of your total employment cost.
| Contribution | Rate |
|---|---|
| SGK (social security) | 20.75% of gross |
| Unemployment insurance | 2% of gross |
| Total employer contributions | 22.75% of gross |
You can also claim the SGK employer support credit of TRY 1,270 per employee per month, which reduces the SGK amount you transfer to the Social Security Institution each month.
Expatriate employees may be exempt from Turkish SGK contributions if their home country has a bilateral social security agreement with Turkey and the relevant certificate of coverage is in place. Check the applicable treaty before processing your first payroll for any expat hire.
Overtime
Turkish law requires written consent from the employee before any overtime can be assigned. Overtime rules are strict and there are financial consequences for getting them wrong.
| Overtime type | Rate or entitlement |
|---|---|
| Weekday overtime | 50% premium on hourly rate, or 1.5 hours time off in lieu per overtime hour |
| Sunday or public holiday work | 100% premium on hourly rate |
| Annual overtime cap | 270 hours per employee |
Bonuses and supplementary pay
Turkey has no statutory 13th month bonus. There’s no mandatory year-end or mid-year payment required by law. Any bonus arrangements are either contractual or discretionary.
When you do pay a contractual bonus, it’s treated as employment income in full. That means both income tax and social insurance contributions apply to the bonus amount, just as they would to regular salary.
Payroll remittance deadlines
Missing a remittance deadline triggers penalties and interest. Build these dates into your payroll calendar from the start.
| Obligation | Deadline |
|---|---|
| Income tax declaration and payment | 26th of the following month |
| SGK contribution declaration | 23rd of the following month |
| SGK contribution payment | 26th of the following month |
| New hire SGK registration | Before or on the employee’s first day of work |
The SGK registration deadline is one of the strictest in Turkish labour law. If a new hire isn’t registered by the time they start work, you can face significant penalties even if the employee only worked one day before the oversight was caught.
Running turkish payroll as a foreign employer
If your company doesn’t have a registered legal entity in Turkey, you can’t put employees directly on a Turkish payroll. Turkish employment law requires the employer to have local legal standing.
You have two options. The first is setting up a Turkish entity, which typically takes several months and carries ongoing corporate, tax, and regulatory obligations.
The second is working with an Employer of Record (EOR). The EOR employs your worker on your behalf under a local Turkish contract, handles SGK registration and monthly contributions, withholds income tax and stamp tax, manages BES enrolment, and meets all remittance deadlines. You direct the work; the EOR owns the employment relationship. It’s a faster, lower-overhead route for companies that want to hire in Turkey without committing to a permanent entity.
If you’re also working with independent contractors in Turkey alongside employees, be aware that the payroll and compliance framework is entirely different for each. Keep the two relationships clearly separate.
Frequently asked questions
When must a new hire be registered with sgk?
Registration must happen before or on the employee’s first day of work. There’s no grace period. Late registration carries financial penalties and leaves the employee without social insurance coverage in the interim.
Do all employees contribute to bes?
Employees under 45 are automatically enrolled at 3% of gross salary. They have two months to opt out. Employees aged 45 and over aren’t subject to auto-enrolment but can join voluntarily.
Is there a mandatory bonus in turkey?
No. Turkey has no statutory 13th month or annual bonus requirement. Any bonus paid is either contractual or at the employer’s discretion, and it’s fully subject to income tax and social insurance contributions.
How does the minimum wage income tax exemption work?
Each month, the income tax that would be owed on a salary equal to the minimum wage (TRY 33,030) is calculated and subtracted from the employee’s actual tax liability. An employee earning exactly the minimum wage ends up owing no income tax. An employee earning more still benefits from the reduction, but the benefit diminishes relative to their total tax liability as income increases.
Can expat employees be exempt from sgk contributions?
Possibly. Turkey has bilateral social security agreements with a number of countries. If the expat’s home country has such an agreement with Turkey and the employee holds a valid certificate of coverage from their home country authority, SGK contributions can be waived. Confirm the applicable treaty and documentation requirements before processing payroll for any expat hire.
RemotePass runs monthly payroll in Turkey, handling SGK declarations, income tax withholding, stamp tax, and BES deductions so you don’t have to. Book a demo to get started.
