Turkey Salary Calculator 2026: Gross to Net and Total Employer Cost
What does an employee in Turkey actually take home, and what does the employee really cost the company? Enter a monthly gross or net salary below. The calculator applies the 2026 SGK rates, the 2026 income tax brackets, stamp tax and the minimum-wage exemptions, month by month.
- 2026 gross minimum wage: TRY 33,030 a month; net TRY 28,075.50; cost to the employer TRY 40,874.63 before incentives.
- Employee deductions: 14% SGK + 1% unemployment, then progressive income tax (15%–40%) and 0.759% stamp tax.
- Employer cost: gross salary + 21.75% SGK + 2% unemployment (23.75% on top), reduced to 21.75% with the 2-point Treasury incentive (16.75% + 2% in manufacturing).
- Net pay falls during the year for most salaries because income tax is cumulative — budget on the annual average, not the January figure.
Calculate salary and employer cost
Assumes a full-month, single-employer, standard employee in 2026 (no disability allowance, no pension-only status, no technopark/R&D exemptions). SGK base is floored at the minimum wage and capped at TRY 297,270. Figures are estimates, not a payslip.
Key facts: Turkey payroll parameters for 2026
| Parameter | 2026 value | Legal basis |
|---|---|---|
| Gross minimum wage (monthly) | TRY 33,030.00 | Minimum Wage Determination Board decision (Labour Law No. 4857, Art. 39) |
| Net minimum wage (monthly) | TRY 28,075.50 | After SGK/unemployment; income and stamp tax exempt |
| SGK base floor / ceiling (monthly) | TRY 33,030 / 297,270 | Law No. 5510, Art. 82 (ceiling = 9 × minimum wage) |
| Employee SGK + unemployment | 14% + 1% | Law No. 5510, Art. 81; Law No. 4447, Art. 49 |
| Employer SGK (MYÖD 12% + GSS 7.5% + short-term 2.25%) | 21.75% | Law No. 5510, Art. 81 — MYÖD employer share raised by 1 point by Law No. 7566 |
| Employer unemployment insurance | 2% | Law No. 4447, Art. 49 |
| Treasury incentive | 2 points (5 in manufacturing) | Law No. 5510, Art. 81(ı) |
| Income tax on wages | 15% / 20% / 27% / 35% / 40% | Income Tax Law (GVK) Art. 103 — 2026 brackets below |
| Stamp tax on wages | 0.759% | Stamp Tax Law No. 488, Table (1) |
| Minimum-wage income tax / stamp tax exemption | TRY 4,211.33 / TRY 250.70 (January) | GVK Art. 23/18; Stamp Tax Law No. 488, Annex (2) Table |
| Severance pay ceiling (from 1 July 2026) | TRY 73,729.87 | Law No. 1475, Art. 14 |
2026 income tax brackets for employment income
| Cumulative annual taxable wage (TRY) | Rate |
|---|---|
| 0 – 190,000 | 15% |
| 190,000 – 400,000 | 20% |
| 400,000 – 1,500,000 | 27% |
| 1,500,000 – 5,300,000 | 35% |
| Over 5,300,000 | 40% |
How much does an employee cost in Turkey in 2026?
| Monthly gross (TRY) | Net — January | Net — December | Net — annual average | Employer cost (2-pt incentive) | Employer cost (no incentive) |
|---|---|---|---|---|---|
| 33,030 (minimum wage) | 28,075.50 | 28,075.50 | 28,075.50 | 40,214.03 | 40,874.63 |
| 50,000 | 40,207.52 | 36,511.30 | 38,844.63 | 60,875.00 | 61,875.00 |
| 75,000 | 58,080.27 | 51,834.05 | 54,167.38 | 91,312.50 | 92,812.50 |
| 100,000 | 75,953.02 | 67,156.80 | 69,490.13 | 121,750.00 | 123,750.00 |
| 150,000 | 111,698.52 | 95,402.30 | 99,935.63 | 182,625.00 | 185,625.00 |
| 250,000 | 182,064.52 | 142,093.30 | 154,426.63 | 304,375.00 | 309,375.00 |
Calculated with the 2026 parameters above for a full-year employee starting in January.
Gross salary vs net salary in Turkey: why net pay drops during the year
This is the most common payroll surprise for foreign employers. A candidate who agrees a “net” figure in January will see it shrink by autumn unless the contract says who absorbs the bracket creep. If you negotiate in net terms, the gross must be re-grossed every month — and the employer cost rises through the year.
Net salary vs gross salary contracts: which should a foreign employer use?
| Gross-salary contract | Net-salary contract | |
|---|---|---|
| Who bears bracket creep | Employee (net falls) | Employer (cost rises) |
| Budget predictability | High — fixed cost | Low — cost varies by month |
| Market practice in Turkey | Growing among international groups | Still common, especially in local hiring |
| Group reporting | Simple | Needs a monthly gross-up schedule |
Our practice note: In our payroll engagements for foreign-owned companies we recommend gross contracts with a written annual review clause. Where the market forces net offers, we build the full-year gross-up into the budget on day one so the headquarters is not surprised in October.
What drives payroll cost in Turkey beyond the salary?
- Incentive eligibility — the 2-point (or 5-point) SGK incentive is lost if the company has overdue SGK debt or files late.
- Salary above the SGK ceiling — contributions stop at TRY 297,270, so employer cost as a percentage falls for senior staff.
- Benefits in kind — meal, transport, private health and car allowances each have their own tax/SGK treatment.
- Bonuses and 13th salaries — paid in a high-bracket month, they are taxed at the marginal rate.
- Severance and notice — termination costs accrue from day one (capped at TRY 73,729.87 per year of service from July 2026).
- Payroll operations — monthly SGK declarations (MUHSGK), e-payslips, entry/exit notices and work permits for foreign staff.
Turkey vs other countries: employer social security on top of salary
| Country | Approx. employer social charges on top of gross | Comment |
|---|---|---|
| Turkey | 21.75%–23.75% (capped at TRY 297,270/month base) | Incentive reduces cost by 2–5 points |
| Poland | c. 20% | Comparable total; higher employee charges |
| Romania | c. 2.25% | Most contributions shifted to the employee |
| Portugal | 23.75% | No ceiling |
| UAE | 0% for most expatriates | End-of-service gratuity instead; no personal income tax |
Indicative headline rates for comparison only; each country has additional levies and caps.
Case study: a UK software company hiring its first two engineers in Istanbul
Illustrative scenario (composite of typical cases): A UK SaaS company offered two engineers “TRY 100,000 net per month” and budgeted the cost as net × 1.4.
The obvious answer: A 40% uplift on net looked conservative.
Why it failed: Because the offers were net, the company had to gross up every month. By the fourth quarter each engineer required a gross salary well above TRY 150,000, and the headquarters’ budget was exceeded. The subsidiary had also missed the 2-point incentive for two months due to a late SGK filing.
The structure adopted: New hires moved to gross contracts with an annual review; the existing net contracts were costed on a full-year gross-up schedule; SGK filings were moved into a monthly compliance calendar so the incentive is never lost.
What happens if…
What happens if we pay the employee from abroad instead of through Turkish payroll?
An employee working in Turkey for a foreign company must still be registered with SGK and taxed through withholding. Paying from abroad without registration creates unregistered-employment penalties, back contributions and a possible permanent-establishment risk for the foreign company.
What happens if the SGK declaration is filed late?
Administrative fines apply per declaration, late-payment interest runs on the contributions, and the company can lose the Treasury incentive (2 or 5 points) for that period — which alone increases employer cost by 2–5% of gross.
What happens if the salary is above the SGK ceiling?
SGK contributions are calculated only up to TRY 297,270 per month. Income tax and stamp tax still apply to the full gross.
What happens if an employee starts mid-year?
Their cumulative tax base starts from their Turkish income in that year, so their net pay in the first months is usually higher than for a January starter on the same gross.
Frequently asked questions
What is the minimum wage in Turkey in 2026?
The 2026 gross minimum wage is TRY 33,030 per month and the net minimum wage is TRY 28,075.50. The total cost to the employer is TRY 40,874.63 without incentives, or TRY 40,214.03 with the standard 2-point incentive.
What percentage is deducted from salary in Turkey?
The employee pays 14% SGK and 1% unemployment insurance on the SGK base, then income tax at 15%–40% on the remainder (after the minimum-wage exemption) and 0.759% stamp tax. For a TRY 100,000 gross salary, total deductions average about 30% over the year.
How much is the employer’s SGK contribution in Turkey?
In 2026 the employer pays 21.75% SGK plus 2% unemployment insurance, 23.75% in total. Most private employers can reduce this by 2 points (5 points in manufacturing) through the Treasury incentive under Law No. 5510, Art. 81(ı).
Can a foreign company run payroll in Turkey without a Turkish entity?
Only in limited cases. Normally a Turkish subsidiary, branch or liaison office registers as the employer. Alternatives such as an employer-of-record carry their own cost and PE considerations — we review these case by case.
Is this calculator suitable for foreign employees?
Yes, a foreign employee with a work permit and full SGK coverage is taxed the same way. Employees covered by a social security agreement certificate from their home country may be exempt from some Turkish contributions.
Primary sources
- Income Tax Law No. 193 (Gelir Vergisi Kanunu) — Art. 23/18, Art. 103
- Social Insurance and General Health Insurance Law No. 5510 — Art. 81, 82
- Stamp Tax Law No. 488
- Unemployment Insurance Law No. 4447 — Art. 49
- Revenue Administration (GİB) · Official Gazette (Resmî Gazete)
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