The building blocks (2026)
| Item | Employee | Employer |
|---|---|---|
| Social security premium | 14% | 21.75% (reduced by incentives when premiums are paid on time) |
| Unemployment insurance | 1% | 2% |
| Income tax | 15%–40%, progressive and cumulative over the year | — |
| Stamp tax | 0.759% of gross | — |
| Premium base | TRY 33,030 (floor) to TRY 297,270 (ceiling) per month | Same |
The part of the salary equal to the minimum wage (TRY 33,030 gross) is exempt from income tax and stamp tax.
Worked example: TRY 100,000 gross a month (January)
| Step | TRY |
|---|---|
| Gross salary | 100,000.00 |
| Employee social security (14%) | −14,000.00 |
| Employee unemployment insurance (1%) | −1,000.00 |
| Income tax base | 85,000.00 |
| Income tax at 15% | 12,750.00 |
| Minimum wage exemption | −4,211.33 |
| Income tax payable | −8,538.67 |
| Stamp tax (0.759%, after minimum wage exemption) | −508.30 |
| Net salary | 75,953.03 |
| Employer social security (21.75%) | 21,750.00 |
| Employer unemployment insurance (2%) | 2,000.00 |
| Total employer cost | 123,750.00 |
Illustrative figures before any employer premium incentive. Confirm current rates with your payroll provider.
Why net pay changes during the year
Income tax is calculated on the cumulative taxable income since January. In this example the monthly base of TRY 85,000 crosses the TRY 190,000 threshold in March, so part of March's salary is taxed at 20%, and later months move into the 27% band. The gross and employer cost stay the same, but net pay falls. Many employers agree salaries in net terms to avoid this, which shifts the cost to the employer.
Other costs to budget
Severance reserve: 30 days' gross pay per year of service for most dismissals, capped at a ceiling.
Annual leave, bonuses and benefits: meal, transport and private health insurance are common.
Premium incentives: paying premiums on time, and hiring from certain groups, can reduce the employer's share.
Foreign employees: a certificate of coverage from a country with a social security agreement may exempt the employee from Turkish premiums.
Frequently asked questions
Is there a ceiling on social security?
Yes. Premiums are calculated on earnings up to TRY 297,270 a month in 2026; salary above the ceiling carries no premiums.
Can I agree a net salary?
Yes, but the employer then carries the effect of rising tax brackets and any future rate changes.
Is the minimum wage taxed?
No. The minimum wage portion of every salary is exempt from income tax and stamp tax.
Budgeting for a hire?
Our Payroll team prepares gross-to-net and employer cost projections for the full year.
This page provides general information and is not legal or tax advice. Every situation is different; talk to us before you act.