Payroll in Turkey is defined by two heavy statutory layers on top of gross salary: social security contributions to the SGK, split between employer and employee against a capped wage base, and progressive income tax withheld by the employer each month. The figures move often because the wage base floor and ceiling are revised with the minimum wage, so any provider quoting Turkish employment costs should be quoting the current year's numbers. The rates below are the 2026 figures as published in PwC's Turkey summary at the time of writing; verify against the sources before relying on them, and treat nothing here as tax advice.
Social security: the biggest line after salary
The general social security rates are 20.75% of the contribution base for the employer and 14% for the employee, with the employer rate reduced by four points to 16.75% where statutory conditions for the incentive are met, and a separate reduced employer rate applying in manufacturing. Contributions are calculated on a base with both a floor and a ceiling: as of 1 January 2026 the base runs from TRY 33,030.00 to TRY 297,270.00 per month. The cap matters for senior salaries, because above the ceiling the contribution stops growing; the floor matters for part-time arrangements, because contributions cannot be calculated on less than the minimum base.
Unemployment insurance and income tax withholding
Unemployment insurance adds 2% of the capped base from the employer, 1% from the employee and 1% from the state, using the same TRY 297,270.00 monthly ceiling. Income tax is withheld by the employer through payroll against progressive bands: for employment income from 1 January 2026 the rates run 15% up to TRY 190,000, then 20%, 27% and 35% through the middle bands, reaching 40% on income over TRY 5,300,000. The employee's share of social security contributions is deductible in determining taxable income, so the withholding calculation runs on the post-contribution figure. Because the brackets are annual and salaries cross them mid-year, an employee's monthly withholding typically rises as the year progresses.
Foreign staff and coverage exemptions
Foreign nationals working in Turkey who remain covered by their home country's social security scheme can be exempt from Turkish contributions for up to three months on proof of that coverage, and for longer where a bilateral social security treaty between Turkey and the home country provides for it. Without foreign coverage, full Turkish contributions apply from the start. This is a genuine cost variable for assignments and relocations: whether a treaty applies can change the employer's monthly cost materially, and the paperwork proving home coverage has to be in place, not merely available. Any EOR or payroll provider quoting a Turkish hire should state which assumption its quote makes.
Entity, payroll provider or EOR in Turkey
With a Turkish entity, a local payroll provider runs the monthly cycle: calculating the capped SGK and unemployment contributions, applying the progressive withholding, remitting to the authorities and issuing compliant payslips. Without an entity, a foreign company cannot register as an employer, so the compliant route to a Turkish hire is an employer of record whose local entity holds the employment contract and carries these obligations as the legal employer. When comparing EOR quotes for Turkey, check whether the quote shows the employer contribution stack explicitly against the current base and rates; a quote built on last year's base understates the true cost. Verified vendor fees are in the comparison table on this site.
Questions people ask about payroll in turkey
What does an employer pay on top of gross salary in Turkey?
Social security at 20.75% of the capped base, reduced to 16.75% where incentive conditions are met, plus 2% unemployment insurance, per PwC's 2026 summary. Both are calculated on a base capped at TRY 297,270.00 per month as of 1 January 2026.
What income tax applies to Turkish salaries in 2026?
Progressive withholding from 15% on the first TRY 190,000 of annual employment income up to 40% above TRY 5,300,000, applied by the employer through payroll. The employee's social security contributions are deductible before tax is calculated.
Are foreign employees always subject to Turkish social security?
No. With proof of home-country coverage an exemption applies for up to three months, and longer where a bilateral treaty exists. Otherwise full Turkish contributions apply from day one.
Can I hire in Turkey without a Turkish entity?
Not as a direct employer; registration with the tax and social security authorities assumes a local entity. An employer of record provides one: its Turkish entity employs your hire and runs the payroll, for a flat monthly fee on top of the employment costs.