Hiring in Turkey means taking on a well-defined set of payroll tax, social insurance, and remittance obligations from day one. Understanding what you owe, when you owe it, and how the system fits together is essential before you put anyone on payroll. This guide covers every major employer tax obligation in Turkey for 2026.
Turkey’s minimum wage in 2026
Turkey sets a single national minimum wage that applies across all industries and regions. The Social Security Institution (SGK) and the Minimum Wage Determination Commission review and set the rate each year.
For 2026, the minimum wage figures are:
| Metric | Amount |
|---|---|
| Gross monthly | TRY 33,030.00 |
| Net monthly | TRY 28,075.50 |
| Daily gross | TRY 1,101.00 |
| Total monthly employer cost (after TRY 1,270 support credit) | ~TRY 40,214.03 |
The 2026 rate represents a 27% increase over 2025 and is effective from January 1 through December 31, 2026. The TRY 1,270 employer support credit reduces the social security contribution you remit each month.
Social insurance contributions
Turkey’s social insurance system is administered by SGK. Both employers and employees contribute, with rates applied to the employee’s gross salary.
Employer contributions
| Contribution | Rate |
|---|---|
| Social security (SGK) | 20.75% |
| Unemployment insurance (İşsizlik Sigortası) | 2% |
| Total | 22.75% |
The 20.75% social security rate includes the work accident and occupational disease premium (İş Kazası ve Meslek Hastalığı). That premium varies from 1% to 6.5% depending on the industry risk class assigned to your business. It’s paid by the employer only and sits within the broader 20.75% rate.
Eligible employers also receive a TRY 1,270 monthly support credit that reduces the social security amount remitted to SGK. This credit is already reflected in the total employer cost figure in the table above.
Employee deductions
| Deduction | Rate |
|---|---|
| Social security | 14% |
| Unemployment insurance | 1% |
| Total | 15% |
| Stamp tax (damga vergisi) | 0.759% |
Employees contribute 15% of gross salary toward social insurance. Stamp tax is an additional 0.759% of gross earnings that the employer withholds and remits separately.
Expatriate employees
Expatriates may be exempt from Turkish social security contributions if their home country has a bilateral social security agreement with Turkey. Where such an agreement applies, the employee needs to present a certificate of coverage from the home country’s social security authority.
Income tax (gelir vergisi)
Turkey uses a progressive income tax system for employment income. The employer withholds income tax from gross salary each month and remits it to the tax authority.
2026 Income tax brackets
| Taxable income (TRY) | 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% |
Minimum wage income tax exemption
A significant relief measure continues in 2026: the portion of income tax attributable to the minimum wage (TRY 33,030/month) is exempt from income tax. In practice, employees earning the minimum wage pay no income tax at all. Employees earning above the minimum wage receive a partial reduction, with the exemption reducing the overall tax burden on the minimum wage portion of their salary.
Stamp tax
In addition to income tax, stamp tax (damga vergisi) is levied at 0.759% of gross earnings. The employer withholds this from the employee’s salary and remits it alongside income tax. Stamp tax applies to each payroll payment and isn’t subject to the minimum wage exemption.
Annual tax return obligations
Most employees whose income tax is fully withheld at source don’t need to file an annual return. However, an employee is required to file if their cumulative tax base for the year exceeds TRY 5,300,000, or if they’ve received employment income from more than one employer and total income from those sources exceeds TRY 400,000.
Private pension system (bes)
Turkey operates an automatic enrollment private pension system called the Bireysel Emeklilik Sistemi (BES). Employers have specific obligations under this scheme.
Enrollment and contributions
All Turkish employees under the age of 45 are automatically enrolled in BES when they join. The employee contributes 3% of gross salary, and you deduct this from payroll within 1 business day of running payroll and transfer it to the designated pension fund administrator.
The state provides a 30% matching contribution on behalf of employees. This is funded by the government directly and doesn’t create any additional cost for the employer.
Opt-out window
Employees have a 2-month window from the date they receive their enrollment notification to opt out of BES. If they opt out, you stop deductions from that point. Employees who opt out can choose to re-enroll voluntarily at a later date.
Employer role summary
Your BES obligations are administrative rather than financial. You enroll eligible employees, deduct the 3% contribution from payroll, transfer funds to the pension administrator within 1 business day, and process any opt-out requests. There’s no direct employer contribution to the scheme.
Vat obligations
Turkey’s standard VAT rate is 20%, in effect since July 2023. Reduced rates of 10% and 1% apply to specific categories of goods and services. VAT applies to the supply of goods and services rather than to employment income directly, but employers operating in Turkey need to account for it in their commercial activities. Your VAT registration and reporting obligations depend on the nature and volume of your Turkish operations.
Payroll tax remittance calendar
Meeting Turkey’s payroll deadlines is non-negotiable. Late payment triggers penalties and interest.
| Obligation | Deadline |
|---|---|
| Income tax (Gelir Vergisi) withholding | Declared and remitted by the 26th of the following month |
| Social security (SGK) | Declared by the 23rd; paid by the 26th of the following month |
| BES pension contribution | Transferred to pension administrator within 1 business day of payroll |
Sgk registration obligations
You must notify SGK when you hire a new employee. Notification is required within 1 business day of the employee’s start date. The same obligation applies when terminating an employee: you must notify SGK of the termination in a timely manner. Missing these registration windows can result in penalties and complications with benefits coverage.
Using an Employer of Record (EOR) in turkey
If you don’t have a legal entity in Turkey, you can’t run payroll or employ staff directly. An Employer of Record (EOR) provides the legal infrastructure to hire Turkish employees on your behalf, handling all registration, payroll, and tax remittance obligations locally.
A what is an Employer of Record arrangement means the EOR is the legal employer of record in Turkey, while your company retains day-to-day direction of the work. This is a straightforward path into the Turkish market without the cost and time of entity setup. When comparing your options, EOR services vary in how comprehensively they handle SGK registration, BES enrollment, and monthly remittances.
If you’re engaging Turkish contractors rather than employees, the tax treatment and obligations differ significantly. Misclassifying an employee as a contractor creates legal exposure under Turkish labor and tax law.
Total employer cost: putting it together
For a Turkish employee earning the minimum wage in 2026, the total monthly employer cost is approximately TRY 40,214.03. That figure includes gross salary, employer social insurance contributions at 22.75%, and reflects the TRY 1,270 monthly support credit.
For higher earners, the employer’s cost increases proportionally with social insurance contributions, while income tax withholding rises through the progressive brackets. Stamp tax at 0.759% of gross applies to all salary payments regardless of income level.
Staying compliant in Turkey requires accurate monthly calculations across income tax, social insurance, stamp tax, and BES deductions, along with meeting SGK registration obligations every time you hire or terminate.
RemotePass handles payroll tax withholding, SGK registration, and social insurance remittances for your Turkey hires with no local entity needed. Book a demo to see how it works.
