Payroll in Turkey: We're with you every step of the way
Hire your Turkish talent quickly, compliantly, and without needing to establish a Turkish entity with Azkan Group’s Employer of Record (EOR) solution.
Maintain day-to-day control of your team while we manage payroll, benefits, risk, compliance, and ongoing employee support.
Recommended by companies worldwide
Payroll
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Hire your Turkish employee via Azkan Group
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Payroll, Employment contracts, Taxes, we manage each step.
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Discover the benefits of our Istanbul-based team. We handle all payroll requests ourselves.
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Pay in Euro: We pay your employees in Euro currency in Turkey.
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No intermediary/ No subcontractors: We manage all requests ourselves. We don't outsource your project.
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Immediate start: Registration of your employee within 24 hours.
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Offer valid under certain conditions. Contact us for more information
Understanding payroll in Turkey
Payroll in Turkey allows you to have a subsidiary with lower costs and without creating a legal structure.
In this way, you can have an employee working full time for you. This employee is recruited by us, and we take care of the signing of the contract and management of local administrative tasks.
This is the recruitment Turkey solution.
Payroll in Turkey, the main advantages :
- You have only one interlocutor monitoring your employee in Turkey
- There is no need to create a subsidiary in Turkey
- There is no book-keeping in Turkey
Overview of payroll in Turkey
Our objective as the Payroll in Turkey company is to offer a solution adapted to our customers’ needs. Our teams are based locally, and are qualified to provide your requested services by adapting strategies to your needs and expectations.
They can also give you advice and information about the Turkish market, on the pros and cons of the internationalisation of your activity, as well as the best strategic choices to make.
Our success comes from our capacity to detect relevant and matching profiles, but also from our performance and personalised payroll services.
We can support you as Umbrella Company Turkey. We have our own legal entity in Istanbul which allows us to declare you as our employee. Initially, you pay us the equivalent of the employee’s wages and taxes.
Then, Azkan Group takes care of the local declaration, payment of payroll taxes, as well as employer and salary payments. Azkan Group is recognised as a local PEO (Professional Employer Organisation) and payroll service provider in Turkey.
Why Payroll Services in Turkey ?
In addition to helping you with your hiring process, we can manage your payroll in Turkey on behalf of your company.
Legal requirements and compliance for payroll in Turkey
Organising your own solution in-house for payroll in Turkey would require you to create your own dedicated legal structure, which is not particularly convenient if you spend most of your time abroad, or if it means hiring additional staff simply to keep up with payroll management.
Outsourcing payroll management allows you to focus on what you do best, and gives you peace of mind.
Payroll in Turkey is regulated and follows a strict set of legal rules which may be complicated to grasp.
We make sure every aspect of your payroll process is up to scratch for your employees, and save you the effort of having to dedicate a whole branch of your company to employing Turkish staff.
That way, your accounting is simplified, and you do not need to modify your business model simply to accommodate payroll in Turkey.
Our payroll solution as an umbrella company, helps you save time and protect your investments.
Being based locally also means we can be a true relationship facilitator between yourself, your employees and the authorities by helping you to make sure everything is running smoothly at all times.
We optimise our solutions based on our clients’ individual needs and our locally based experts, always having your best interests at heart, and we strive to report to you every step of the way and to provide you with all the necessary information to make the right decisions regarding how we handle payroll in Turkey on your behalf. Regardless of the size of your company, outsourcing payroll locally is the perfect way to ensure employee satisfaction and overall efficiency.
Payroll in Turkey , just as elsewhere, requires you to have a dedicated HR department, complete with additional accountants. Having us handle this side of your business for you is an excellent way to save costs by avoiding the necessity to dedicate in-house resources, both in terms of personnel and office space.
We can take care of everything, from employee pay to tax and report filing. Our complete solution means all social, administrative and legal aspects of your activities in Turkey can be handled in the best way possible.
Possibility to rent an office in Istanbul (serviced offices Istanbul): Azkan Group provides you offices to accommodate your employees. These premises are modern, equipped and furnished.
Support from recruitment Turkey: As a Turkey HR firm, Azkan Group detects local profiles which correspond to your criteria (complementary support to our Umbrella Company Turkey solution).
Work Permit Turkey and Residence Permit Turkey: We can also help to monitor such requests.
We can measure our success by our customers’ satisfaction.
The main factor of this success is our long-term involvement and our sense of service and partnership to our customers.
We have considerable experience in many sectors such as industry, engineering, automotive, energy etc.
Challenges businesses face when managing payroll in Turkey
Our objective as the Payroll in Turkey company is to offer a solution adapted to our customers’ needs. Our teams are based locally, and are qualified to provide your requested services by adapting strategies to your needs and expectations.
They can also give you advice and information about the Turkish market, on the pros and cons of the internationalisation of your activity, as well as the best strategic choices to make.
Our success comes from our capacity to detect relevant and matching profiles, but also from our performance and personalised payroll services.
We can support you as Umbrella Company Turkey. We have our own legal entity in Istanbul which allows us to declare you as our employee. Initially, you pay us the equivalent of the employee’s wages and taxes.
Then, Azkan Group takes care of the local declaration, payment of payroll taxes, as well as employer and salary payments. Azkan Group is recognised as a local PEO (Professional Employer Organisation) and payroll service provider in Turkey.
Benefits of Outsourcing Payroll in Turkey
Outsourcing payroll in Turkey, as in many other countries, can offer several benefits for businesses. Here are some of the key advantages
Expertise and Compliance :
Payroll outsourcing providers in Turkey typically have expertise in local labor laws, tax regulations, and compliance requirements. This helps ensure that your payroll processes are accurate and in line with legal obligations, reducing the risk of penalties or fines due to non-compliance.
Time and Cost Savings:
Managing payroll in-house can be time-consuming and resource-intensive. Outsourcing payroll in Turkey allows businesses to free up valuable time and resources that can be redirected towards core business activities. Additionally, outsourcing can often be more cost-effective than hiring and training internal payroll staff, especially for small and medium-sized enterprises.
Accuracy and Efficiency:
Payroll outsourcing companies use advanced payroll software and systems to streamline processes and minimize errors. This can result in more accurate payroll calculations, timely payments to employees, and improved overall efficiency in payroll administration.
Confidentiality and Security:
Outsourcing payroll can help maintain confidentiality and data security. Reputable payroll providers in Turkey adhere to strict data protection regulations and implement robust security measures to safeguard sensitive employee information.
Scalability:
As your business grows or experiences fluctuations in workforce size, outsourcing payroll can offer scalability and flexibility to adapt to changing needs. Payroll service providers can adjust their services accordingly, accommodating changes in employee numbers, benefits, or other payroll-related factors.
Access to Technology and Innovation:
Payroll outsourcing companies often invest in the latest technology and innovations to improve their services continuously. By outsourcing payroll, businesses can benefit from access to cutting-edge payroll software, tools, and features without having to invest in them individually.
Focus on Core Competencies:
Outsourcing non-core functions like payroll allows businesses to focus on their core competencies and strategic priorities. By delegating payroll tasks to experts, businesses can concentrate on activities that drive growth, innovation, and competitiveness in the marketplace.
Reduced Administrative Burden:
Managing payroll involves various administrative tasks, such as calculating wages, deductions, and taxes, as well as preparing and distributing paychecks or direct deposits. Outsourcing payroll in Turkey transfers much of this administrative burden to external providers, freeing up internal resources for other essential tasks.
Cost-effectiveness and efficiency
Outsourcing payroll in Turkey can indeed provide cost-effectiveness and efficiency for businesses in several ways, click to discover more !
Outsourcing payroll eliminates the need to hire and train internal payroll staff, saving businesses costs associated with salaries, benefits, office space, equipment, and other overhead expenses. This is particularly beneficial for small and medium-sized enterprises (SMEs) with limited resources.
Payroll processing involves various tasks, including calculating wages, deductions, and taxes, as well as preparing reports and distributing payments. Outsourcing payroll in Turkey frees up valuable time for business owners and HR personnel, allowing them to focus on more strategic activities that drive growth and innovation.
Payroll outsourcing providers in Turkey have specialized knowledge of local labor laws, tax regulations, and compliance requirements. By leveraging their expertise, businesses can ensure accurate and compliant payroll processing, reducing the risk of errors, penalties, or fines due to non-compliance.
Outsourcing payroll services in Turkey can offer scalability and flexibility to accommodate changes in workforce size or business needs. Whether a business is expanding, downsizing, or experiencing seasonal fluctuations, outsourcing providers can adjust their services accordingly, providing cost-effective solutions that align with changing requirements.
Payroll outsourcing companies in Turkey typically invest in advanced payroll software and systems to streamline processes and improve efficiency. By outsourcing payroll, businesses can leverage cutting-edge technology without the need for significant upfront investment or ongoing maintenance costs.
Outsourcing payroll can help mitigate the risk of errors, fraud, or security breaches. Reputable payroll providers implement robust security measures and protocols to safeguard sensitive employee information, reducing the risk of data breaches or unauthorized access.
Payroll outsourcing companies in Turkey often provide comprehensive reporting capabilities, consolidating payroll data into easy-to-understand reports. This allows businesses to gain insights into their payroll expenses, track trends over time, and make informed decisions to optimize their financial management strategies.
Many payroll outsourcing providers offer additional support services, such as employee self-service portals, HR consulting, tax advisory, and regulatory compliance assistance. These value-added services can enhance efficiency, improve employee satisfaction, and further optimize payroll processes.
Overall, outsourcing payroll in Turkey can offer businesses cost-effectiveness and efficiency by reducing overhead costs, saving time, ensuring compliance, providing scalability and flexibility, leveraging technology, mitigating risks, offering consolidated reporting, and providing valuable support services.
Reduced compliance risks
Outsourcing payroll in Turkey can help reduce compliance risks for businesses in several ways, click to discover them !
Payroll outsourcing providers in Turkey have specialized knowledge of local labor laws, tax regulations, and compliance requirements. They stay updated on changes in legislation and ensure that payroll processes are in line with legal obligations, reducing the risk of non-compliance.
Payroll outsourcing companies utilize advanced payroll software and systems to automate calculations and ensure accuracy in wage calculations, deductions, taxes, and other payroll-related calculations. This reduces the risk of errors that could lead to compliance issues or penalties.
Payroll outsourcing providers in Turkey handle timely filings and payments of payroll taxes, social security contributions, and other statutory obligations on behalf of businesses. By ensuring compliance with filing deadlines, businesses avoid penalties and fines for late or incorrect submissions.
Payroll outsourcing companies assist businesses in fulfilling reporting requirements mandated by Turkish authorities. They generate and submit payroll-related reports accurately and promptly, reducing the risk of penalties for non-compliance with reporting obligations.
Reputable payroll outsourcing providers conduct regular audits and reviews of payroll processes to identify potential compliance issues or discrepancies. By proactively addressing any issues that arise, businesses can mitigate the risk of non-compliance and ensure that payroll operations adhere to regulatory standards.
Payroll outsourcing companies implement robust data security measures to protect sensitive employee information from unauthorized access, fraud, or data breaches. Compliance with data protection regulations enhances trust and reduces the risk of legal consequences associated with data privacy violations.
Payroll outsourcing providers help businesses maintain accurate records and documentation related to payroll transactions, employee wages, tax withholdings, and other relevant information. Comprehensive record-keeping facilitates compliance with record retention requirements and facilitates audits or inquiries from regulatory authorities.
Payroll outsourcing companies may offer legal support and guidance to businesses on complex compliance issues, interpretations of labor laws, or regulatory inquiries. Access to expert advice helps businesses navigate compliance challenges effectively and minimize the risk of legal disputes or penalties.
Access to local expertise
Since 2005, AZKAN Group consulting company has a team of local experts and regular speakers who offer Payroll Services in Turkey.
Our Payroll Services in Turkey
Our services include :
Companies benefiting from your services
Wage Calculation :
Accurately calculating employee wages based on hours worked, salaries, bonuses, commissions, or other compensation structures.
Deductions and Withholdings:
Calculating and deducting income tax, social security contributions, health insurance premiums, and other mandatory deductions from employee wages.
Statutory Reporting:
Generating and submitting payroll-related reports to Turkish authorities, such as tax filings, social security declarations, and other regulatory documentation.
Payment Processing:
Facilitating timely and accurate payments to employees via bank transfers, checks, or electronic payment methods.
Compliance Management:
Ensuring compliance with Turkish labor laws, tax regulations, social security requirements, and other statutory obligations related to payroll administration.
Record-keeping:
Maintaining comprehensive records of payroll transactions, employee earnings, tax withholdings, and other relevant information for auditing and regulatory purposes.
Employee Self-Service:
Providing online portals or tools that allow employees to access their payroll information, view payslips, update personal details, and submit time-off requests.
Tax Advisory:
Offering guidance and support on tax matters, including tax planning, optimization strategies, and assistance with inquiries or audits from tax authorities.
Some clients testimonials
“Efficient, reliable, and professional – that’s how I would describe Azkan Group’s payroll services in Turkey. Their team goes above and beyond to meet our payroll needs, ensuring accuracy, compliance, and timely payments every time. With their support, we’ve streamlined our payroll processes and gained confidence in our compliance with Turkish labor laws and tax regulations. Thank you for your excellent service!”
“Choosing Azkan Group for our payroll needs in Turkey has been a game-changer for our business. Their comprehensive services and personalized support have exceeded our expectations. From wage calculations to tax filings, they handle it all with precision and efficiency. We’re impressed by their dedication to ensuring compliance and providing top-notch customer service.”
“Outsourcing our payroll to Azkan Group was one of the best decisions we made for our business in Turkey. Their team’s expertise and attention to detail have ensured accurate payroll processing and compliance with local regulations. We’ve saved valuable time and resources, allowing us to focus on growing our business. Highly recommend their services!”
“Thanks to Azkan Group’s payroll services, we’ve experienced seamless payroll processing and compliance in Turkey. Their knowledgeable team consistently delivers accurate calculations and timely payments, alleviating our administrative burden and reducing compliance risks. Their professionalism and commitment to customer satisfaction are truly commendable.”
How We Ensure Accuracy and Compliance
Ensuring accuracy and compliance in payroll for Turkey requires a thorough understanding of local labor laws, tax regulations, and social security requirements. Here’s how we achieve it:
Our team stays updated on Turkish payroll legislation and undergoes regular training to ensure expertise in compliance matters.
We utilize advanced payroll software to automate calculations, minimizing errors and ensuring accurate wage calculations, tax withholdings, and deductions.
Our process includes rigorous double-checking of payroll data and calculations to identify and rectify any discrepancies before finalizing payments.
Regular compliance reviews are conducted to ensure adherence to Turkish labor laws, tax regulations, and social security obligations.
We maintain detailed records of payroll transactions, tax filings, and compliance documentation, facilitating audits and regulatory inquiries.
We continuously monitor regulatory changes and update our processes accordingly to maintain compliance and accuracy in payroll processing for our clients.
Respect for Turkish labor law
2026 Payroll in Turkey Parameters
Under the Turkish payroll system, standard statutory deductions consist of social security contributions, income tax, and stamp tax. However, salaries paid through liaison offices operating in Türkiye benefit from a specific exemption: in accordance with Article 34/14 of the Income Tax Law, such wages are not subject to income tax and are only liable for social security contributions.
In addition, the income tax relief mechanism first implemented in 2022—granting an exemption equivalent to the income tax calculated on the minimum wage—will remain applicable throughout 2026 for all employees.
Social Security Contributions
Social security premiums in Türkiye are calculated on a monthly basis and are jointly financed by employees and employers. The applicable contribution rates are outlined below:
Employees contribute 14% for Social Security Institution (SSI) premiums and 1% for unemployment insurance, resulting in a total employee contribution of 15%.
Employers contribute 21.75% for SSI premiums and 2% for unemployment insurance, bringing the standard employer contribution to 23.75%.
Pursuant to Article 81(ı) of Law No. 5510, employers that meet the statutory requirements may benefit from a 2-point reduction in their SSI contribution rate, reducing the employer’s total burden to 21.75%. Employers who do not qualify for this incentive continue to apply the standard rate.
Furthermore, companies operating in the manufacturing sector may continue to benefit from a 5-point SSI premium discount until the end of 2026.
SSI Contribution Base and Ceiling for 2026
For the 2026 calendar year, social security contributions are calculated within the following limits:
Monthly minimum SSI base: 33,030.00 TRY
Monthly maximum SSI ceiling: 297,270.00 TRY
Earnings exceeding the ceiling are not subject to additional SSI contributions.
Income Tax Liability in 2026
According to Article 1 of the Income Tax Law, the tax year in Türkiye aligns with the calendar year, and income tax is assessed using a cumulative progressive system. As employees earn income throughout the year, their cumulative taxable base increases, which may result in movement to higher tax brackets.
Income Tax Rates for Wage Earners (2026)
Up to 190,000 TRY: 15%
190,001 – 400,000 TRY: 20%
400,001 – 1,500,000 TRY: 27%
1,500,001 – 5,300,000 TRY: 35%
Above 5,300,000 TRY: 40%
Income Tax Rates for Non-Wage Income (2026)
While the initial brackets mirror those applied to wages, differences arise at higher thresholds, particularly above 1,000,000 TRY, where tax calculations diverge based on income type.
Income Tax Exemption in 2026
The income tax exemption corresponding to the tax amount calculated on the minimum wage—introduced in 2022—will continue to be applied throughout 2026. This exemption significantly reduces the tax burden for employees earning at or near the minimum wage.
Stamp Tax Rules
Stamp tax continues to apply to employment income processed through payroll at a rate of 0.759%, a rate unchanged since January 1, 2015. The tax base is the employee’s total gross earnings.
As per the exemption introduced in 2022, wages up to the minimum wage level remain fully exempt from stamp tax in 2026.
Minimum Wage–Based Tax Exemptions for 2026
The increase in the statutory minimum wage effective January 1, 2026 has also adjusted income tax and stamp tax exemption thresholds. These exemption amounts vary throughout the year, reflecting changes in the minimum wage.
From January through June, the monthly income tax exemption remains stable, while higher exemption amounts apply from July onward. The stamp tax exemption remains constant throughout the year.
Minimum Wage Payroll Example (January 2026)
For a gross minimum wage of 33,030.00 TRY:
Employee SSI contribution (14%): 4,624.20 TRY
Employee unemployment contribution (1%): 330.30 TRY
Total employee deductions: 4,954.50 TRY
Due to the full income tax and stamp tax exemption applicable to minimum wage earnings, no income tax or stamp tax is withheld. The resulting net minimum wage is 28,075.50 TRY.
Employer Cost Example for Minimum Wage (January 2026)
For the same gross minimum wage:
Employer SSI contribution (21.75%): 7,184.03 TRY
Employer unemployment contribution (2%): 660.60 TRY
This results in a total employer cost of 40,874.63 TRY without incentives. With the 2-point SSI discount applied, the cost decreases to 40,214.03 TRY, while manufacturers benefiting from the 5-point incentive incur a reduced total cost of 39,223.13 TRY.
The statutory minimum wage support of 1,270 TRY for 2026 is not included in these figures.
Sample Payroll Calculation for a 50,000 TRY Gross Salary (2026)
For an employee earning 50,000 TRY gross per month:
Employee SSI and unemployment contributions total 7,500.00 TRY
The income tax base is 42,500.00 TRY
Calculated income tax at 15% is 6,375.00 TRY
After applying the minimum wage income tax exemption, payable income tax is 2,163.67 TRY
Stamp tax after exemption amounts to 128.80 TRY
The total deduction equals 9,792.47 TRY, resulting in a net salary of 40,207.53 TRY.
Payroll Calculation Methodology in Türkiye
The payroll calculation process follows a defined sequence:
Determine total gross earnings, including base salary and all allowances.
Calculate the SSI base after excluding exempt items.
Apply employee and employer social security contributions.
Establish the cumulative income tax base.
Calculate income tax according to the applicable tax bracket.
Deduct the minimum wage income tax exemption.
Calculate stamp tax after applying the exemption.
Subtract all deductions from gross earnings to determine net pay.
Because Türkiye applies a cumulative income tax system, an employee’s tax rate may increase during the year. For example, an employee taxed at 15% in January may move into the 20% bracket in subsequent months due to bonuses or higher cumulative earnings.
2024 Payroll in Turkey Parameters
2024 Payroll in Turkey Parameters
| Employee | Employer | |
|---|---|---|
|
SSI Premium |
14% |
20.5% |
|
SSI Unemployment Premium |
1% |
2% |
|
Total |
15% |
22.5% |
|
Discount |
|
5% |
|
Total – With the DIscout |
15% |
17.5% |
| Period | Monthly SSI Base | Monthly SSI Base Ceiling |
|---|---|---|
|
2024 |
20,002.50-TRY |
150,018.90-TRY |
| Minimum | Maximum | Rate |
|---|---|---|
|
0 |
110,000.00 |
15% |
|
110,000.01 |
230,000.00 |
20% |
|
230,000.01 |
870,000.00 |
27% |
|
870,000.01 |
3,000,000.00 |
35% |
|
3,000,000.01 and more |
|
40% |
| Period | Income Tax Exemption | Stamp Tax Exemption |
|---|---|---|
|
January |
2,550.32 |
151.82 |
|
February |
2,550.32 |
151.82 |
|
March |
2,550.32 |
151.82 |
|
… |
… |
… |
- Gross Minimum Wage: 20,002.50 TRY
- SSI Employee (%14) : 2800.35 TRY
- Unemployment Employee (%1): 200.03 TRY
- Total Deduction: 3,000.38 TRY
- Net Minimum Wage: 17,002.12 TRY
- Gross Minimum Wage: 20,002.50 TRY
- SSI Employer (%20.5) : 4100.51 TRY
- Unemployment Employer (%1): 400,05 TRY
- Employer Cost (Without discount of 5%) : 24,503.06 TRY
- Employer Cost (With a discount of 5%) : 23,502.94 TRY
- Monthly Gross Salary: 50,000.00 TRY
- SSI Employee (%14): 7,000.00 TRY
- Unemployment Employee (%1): 500.00 TRY
- Total SSI Deduction: 7,500.00 TRY
- Income Tax Base: 42,500.00 TRY
- Income Tax Amount (%15): 6,375.00 TRY
- Income Tax Exemption: 2,550.32 TRY
- Income Tax Payable: 3,824.68 TRY
- Stamp Tax Base (Before Exemption): 50,000.00 TRY
- Stamp Tax Base Exemption: 20,002.50 TRY
- Stamp Tax Base (After Exemption): 29,997.50 TRY
- Stamp Tax Payable: 227.68 TRY
- Total Deduction Amount: 11,552.36 TRY
- NET WAGE: 38,447.64 TRY
2025 Payroll in Turkey Parameters
2025 Payroll in Turkey Parameters
In 2025, payroll processing under umbrella employment in Turkey continues to follow a structured framework of mandatory deductions, primarily consisting of social security contributions, income tax, and stamp tax. These deductions apply to salaries paid through Turkish payroll systems. However, salaries paid via liaison offices in Turkey remain exempt from income tax under Article 34/14 of the Turkish Income Tax Law and are subject only to social security contributions.
The income tax exemption introduced in 2024—corresponding to the income tax calculated on the minimum wage—remains in force throughout 2025. This measure continues to reduce the overall tax burden on employees earning at or near the minimum wage.
Social Security Contributions in 2025
Social security premiums in Turkey are shared between the employee and the employer and are calculated on a monthly basis. The standard contribution rates are as follows:
Employee contributions: 14% for Social Security Institution (SSI) premiums and 1% for unemployment insurance, totaling 15%.
Employer contributions: 20.75% for SSI premiums and 2% for unemployment insurance, totaling 22.75%.
This results in a total social security burden of 37.75% of the gross salary. Employers who meet the eligibility criteria under Article 81(ı) of Law No. 5510 may benefit from a 5-point reduction in the employer’s SSI contribution, lowering the employer rate to 17.75% and the total contribution to 32.75%. Employers who do not qualify for this incentive continue to pay the standard 20.75% SSI rate.
For 2025, the monthly SSI contribution base is set at 26,005.50 TRY, while the monthly ceiling is capped at 195,041.40 TRY. Earnings above this ceiling are not subject to additional social security contributions.
Income Tax Regulations for 2025
Turkey applies a progressive and cumulative income tax system, meaning that tax rates increase as an employee’s taxable income accumulates over the calendar year. The applicable income tax brackets for 2025 are:
Up to 158,000 TRY: 15%
158,000.01 – 330,000 TRY: 20%
330,000.01 – 1,200,000 TRY: 27%
1,200,000.01 – 4,300,000 TRY: 35%
Above 4,300,000 TRY: 40%
The income tax exemption calculated based on the minimum wage continues to apply in 2025, in line with the framework introduced in 2024.
Stamp Tax in 2025
Stamp tax is levied at a rate of 0.759% on gross salaries and has been in effect since 2015. In accordance with regulations introduced in 2023 and maintained in 2025, salaries up to the minimum wage remain exempt from stamp tax, reducing payroll costs for lower-income earners.
Minimum Wage and Tax Exemptions in 2025
Changes to the minimum wage in 2025 directly affect the thresholds for income tax and stamp tax exemptions. The applicable exemption amounts vary during the year:
January to July:
Income tax exemption: 3,315.70 TRY
Stamp tax exemption: 197.38 TRY
August:
Income tax exemption: 4,257.57 TRY
Stamp tax exemption: 197.38 TRY
September to December:
Income tax exemption: 4,420.94 TRY
Stamp tax exemption: 197.38 TRY
Payroll Calculation Examples for 2025
Example 1: Gross Minimum Salary (26,005.50 TRY)
The employee’s SSI contribution at 14% amounts to 3,640.77 TRY, while unemployment insurance at 1% equals 260.06 TRY. After these deductions, the net salary is 22,104.67 TRY.
From the employer’s perspective, the SSI contribution at 20.75% equals 5,396.14 TRY, and unemployment insurance at 1% equals 520.11 TRY. The total employer cost is 31,921.75 TRY without the SSI discount. If the employer qualifies for the 5% SSI discount, the total cost decreases to 30,621.48 TRY.
Example 2: Gross Salary of 50,000 TRY
For a gross salary of 50,000 TRY, the employee pays 7,000 TRY in SSI contributions and 500 TRY in unemployment insurance. The taxable base is 42,500 TRY. Income tax amounts to 3,059.30 TRY, and stamp tax is 182.12 TRY. The resulting net salary is 39,258.58 TRY.
Steps to Calculate Payroll in Turkey
Payroll calculation in Turkey follows a structured process:
Determine the gross salary, including fixed pay and any benefits.
Calculate employee and employer SSI contributions based on statutory rates.
Establish the taxable base by deducting employee SSI contributions from the gross salary.
Apply income tax according to the progressive tax brackets.
Calculate stamp tax on the gross salary after applicable exemptions.
Subtract all deductions from the gross salary to arrive at the net salary.
As employees’ cumulative income increases throughout the year, higher income tax brackets may apply, resulting in increased tax liabilities over time.
Written by Executive Manager EMEA of Azkan Group: Inane GURBUZ
