Payroll in Türkiye 2026: SGK premiums, income tax and stamp tax

In Türkiye the employer deducts 14% SGK premium and 1% unemployment insurance, income tax at progressive rates on the cumulative yearly wage and 0.759% stamp tax from each salary, with the minimum wage part exempt from both taxes. On top, the employer pays 21.75% SGK and 2% unemployment premiums, less any incentive, and reports everything on one monthly return.

Payroll in Türkiye at a glance

Social security contributions

Premiums are due under the Social Insurance and General Health Insurance Law No. 5510 on the employee's earnings subject to premium (prime esas kazanç), within a floor and a ceiling. The 2026 rates are:

2026 change. Law No. 7566 of 4 December 2025 raised the pension insurance rate from 20% to 21%, all of it on the employer's share (from 11% to 12%). The employer's SGK share is therefore 21.75% instead of 20.75%.

Employer incentive. Private-sector employers that file on time, pay the employee's share on time and have no overdue SGK debt have part of their pension premium paid by the Treasury. Law 7566 cut the general reduction from 4 points to 2 points, so since 2026 they pay 19.75%. Under temporary article 108 of Law 5510, employers in manufacturing keep a 5-point reduction and pay 16.75% until 31 December 2026; the President can extend this until 31 December 2027. Public sector employers and some public procurement work do not qualify.

Floor and ceiling. The premium base cannot be lower than the minimum wage, TRY 33,030 a month in 2026, and is capped at 9 times that floor, TRY 297,270 a month. If pay is below the floor, the employer pays the premiums on the difference.

Income tax on salaries

Income tax on wages is withheld monthly under the Income Tax Law No. 193. The base is gross pay minus the employee's SGK and unemployment premiums, and the rate depends on the employee's cumulative tax base since January. The 2026 tariff for wage income:

Because the bands are cumulative, the same monthly salary is taxed more heavily later in the year once the employee moves into a higher band.

Minimum wage exemption. Under article 23(18) of the Income Tax Law, the part of every wage equal to the monthly gross minimum wage minus the employee's SGK and unemployment premiums, TRY 28,075.50 in 2026, is exempt. The employer calculates the tax on the whole base and subtracts the tax attributable to the exempt amount. For employees with several employers the exemption applies only to the highest wage.

Stamp tax. Wage payments carry stamp tax (damga vergisi) at 0.759% (binde 7,59) of gross pay. The part equal to the gross minimum wage is exempt, so in 2026 the tax is due only on pay above TRY 33,030.

Minimum wage, working time and mandatory pay

Minimum wage. For 1 January to 31 December 2026 the minimum wage is TRY 33,030 gross a month. After the 14% SGK and 1% unemployment premiums the employee receives TRY 28,075.50, and because of the exemptions no income tax or stamp tax is due on it. For an employer without incentives a minimum wage worker costs TRY 40,874.63 a month, TRY 40,214.03 with the 2-point incentive and TRY 39,223.13 with the 5-point manufacturing incentive.

Overtime. Work above 45 hours a week is overtime, paid at the normal hourly wage plus 50%. Where the contract sets fewer than 45 hours, the hours between the contractual average and 45 are paid plus 25%. The employee may choose time off instead: 1.5 hours for each hour of overtime and 1.25 hours for each hour in the 25% band, taken within six months.

Pay and payslip. Wages are paid at least once a month (an employment contract can set a period down to one week). With every payment the employer gives a signed payslip (ücret hesap pusulası) showing the payment date and period, additions such as overtime and holiday pay, and each deduction such as tax, SGK premium, advances and enforcement deductions.

Bonuses. Turkish law does not require a 13th salary; bonuses (ikramiye) come from the contract or a collective agreement.

Monthly payroll calendar and filings

1. 1Register the workplace with SGK and report each new employee with the insured employment start notice (sigortalı işe giriş bildirgesi) before work starts. In construction, fishing and agriculture the notice can be given at the latest on the first day of work.
2. 2Pay wages at least monthly with a payslip, withholding SGK and unemployment premiums, income tax and stamp tax.
3. 3File the Muhtasar ve Prim Hizmet Beyannamesi (MPHB), the combined withholding tax return and monthly premium and service report, by the 26th of the following month; for April 2026, for example, the last day was 26 May 2026 before SGK extended it because of the Kurban Bayramı holiday.
4. 4Pay the withheld income and stamp tax and the SGK and unemployment premiums by their due dates. The employer incentive requires the return to be filed and the premiums not covered by the Treasury to be paid on time, with no overdue SGK debt.

Worked example: TRY 60,000 in January 2026

A single employee without children earns TRY 60,000 gross in January 2026, the first month of the tax year, at a private-sector employer outside manufacturing that qualifies for the 2-point incentive.

Without the incentive the employer's SGK share would be TRY 13,050.00 and the total cost TRY 74,250.00. The cumulative tax base passes TRY 190,000 in April (4 × TRY 51,000 = TRY 204,000), so from that month part of the salary is taxed at 20% and net pay falls.

Common mistakes

1. 1Using the 2025 employer rate: since 2026 the SGK employer share is 21.75%, and the general incentive is 2 points instead of 4.
2. 2Claiming the 5-point incentive outside manufacturing, or after a late return or unpaid premiums.
3. 3Applying the tax bands to each month separately instead of to the cumulative base since January.
4. 4Forgetting the minimum wage exemptions for income tax and stamp tax, or applying them at more than one employer.
5. 5Calculating premiums above TRY 297,270 or below the TRY 33,030 floor.
6. 6Late hiring notices: the SGK notice is due before the employee starts work.
7. 7Missing the 26th for the Muhtasar ve Prim Hizmet Beyannamesi.

How Clientlly helps

Clientlly does not ship a built-in payroll profile for Türkiye. An administrator enters the Turkish payroll rates once in the payroll tax settings: the income-tax bands, the personal allowance, the employee and employer contribution rates and the minimum wage. Clientlly then calculates gross to net and the employer contributions and produces payslips. Check the Turkish specifics for each employee: the cumulative tax base, the minimum wage exemptions, stamp tax and the incentive your workplace qualifies for.

Alongside payroll, the human resources module handles leave requests and approvals with a leave calendar and keeps HR documents, and attendance and time tracking records working hours and overtime, so you can see which hours pass the 45-hour week.