What does it cost to hire an employee in Turkiye in 2026?
SGK employer social insurance in Turkiye runs at 23.75% of gross salary under the standard rate. Add income tax withholding from 15% on the first band, the BES auto-enrolment pension, and 14 days of paid leave, and the true employer cost lands well above the headline salary figure. Budget the full picture before you send an offer.
· Turkiye guide
Illustration · Istanbul, Turkiye
SGK employer contributions in Turkiye run at 23.75% of gross at the standard rate. This changed from an 11% pension sub-rate to 12% by Law 7566 from 1 January 2026. Sector discounts exist but the headline rate applies unless your industry qualifies.
The minimum gross wage is TRY 33,030/month for H1 2026. Minimum wage income is fully exempt from income tax. A mid-year review is scheduled for June 2026 and may raise the H2 rate.
Employees earn 14 days of paid leave per year for the first five years of service. SGK pays sick benefit from day three of illness. Both are non-negotiable from the first day of work.
What is the total employer cost in Turkiye?
The employer cost in Turkiye is gross salary plus SGK social insurance plus any benefits you choose to add.
SGK employer contributions are 23.75% of gross at the standard no-incentive rate. This covers invalidity, old-age, and death insurance (12%), general health insurance (7.5%), short-term insurance (2.25%), and unemployment insurance (2%). Manufacturing employers qualify for a 5-point discount. Non-manufacturing employers qualify for a 2-point discount. The rates here are the headline statutory rates.
The employer cost in Turkiye has three main layers. Every hire in Turkiye starts with these lines.
| Layer | What it includes | Statutory basis |
|---|---|---|
| Gross salary | The agreed gross including any fixed allowances | Contract / Labour Law No. 4857 |
| SGK employer contributions | Pension, health, short-term risks, and unemployment insurance at 23.75% standard rate | Law No. 5510 / Law No. 7566 |
| Leave and benefits | 14 days paid leave per year (1 to 5 years service), maternity protections, paternity leave, SGK-backed sick benefit | Labour Law No. 4857, Art. 53 and 74 |
The minimum wage floor
No employee in Turkiye earns less than TRY 33,030/month gross in H1 2026 under the Minimum Wage Determination Commission decision (Official Gazette No. 33119, 26 December 2025). Income earned at minimum wage is exempt from income tax. SGK contributions are calculated on actual gross wages, so salaries above this floor generate proportionally higher contributions.
SGK earnings ceiling
SGK contributions are not unlimited. The earnings ceiling is 9 times the minimum wage per month. In H1 2026 that works out at approximately 297,270 TRY per month. Salaries above that ceiling attract no further SGK contributions on either side for the amount above the cap. For most professional hires, the ceiling does not apply.
BES auto-enrolment pension
Employees are automatically enrolled in the BES individual pension scheme (Bireysel Emeklilik Sistemi) from their first day. The employee contributes 3% of their SGK base. Employees may opt out within two months. The state adds a 20% subsidy on top of employee contributions. There is no mandatory employer cash contribution to BES. The employer obligation is administrative: set up the payroll deduction and remit it.
SGK employer contributions: the biggest line
SGK employer contributions total 23.75% of gross at the standard rate.
Law No. 7566 raised the pension sub-rate from 11% to 12% from 1 January 2026. This increased the total by one percentage point versus the 2025 rate.
The 23.75% headline rate breaks into four sub-rates under Law No. 5510 as amended by Law No. 7566.
| SGK branch | Employer rate |
|---|---|
| Invalidity, old-age, and death insurance | 12.00% |
| General health insurance | 7.50% |
| Short-term insurance (occupational disease, work accident, maternity) | 2.25% |
| Unemployment insurance | 2.00% |
| Standard employer total | 23.75% |
Law No. 7566, amending Social Insurance and Universal Health Insurance Law No. 5510, raised the invalidity, old-age, and death insurance employer sub-rate from 11% to 12% with effect from 1 January 2026. The standard total employer SGK rate is now 23.75%. Manufacturing sector: a 5-point discount applies through 31 December 2026 (18.75% total). Non-manufacturing: a 2-point discount applies (21.75% total).
Source: Vergi Merkezi: Turkey Payroll 2026 SGK Rates and Employer Cost Guide
Employee SGK contributions
The employee pays 15% of gross in SGK contributions: invalidity, old-age, and death (9%), general health (5%), and unemployment (1%). Both employer and employee contributions are capped at the monthly SGK ceiling. The employer withholds the employee share and remits both shares to SGK together each month.
Sector incentives
Manufacturing employers benefit from a 5-point SGK discount through 31 December 2026, bringing their total to 18.75%. Non-manufacturing employers get a 2-point discount at 21.75%. These incentives are set by statute and expire unless renewed. Build the standard 23.75% rate into your long-run cost model. Apply the incentive rate only if your sector and registration confirm eligibility.
Income tax and employee deductions in Turkiye
Employees pay income tax on a five-band progressive scale. The first band starts at 15%. The top rate is 40% on income above TRY 5,300,000/year.
Minimum wage income is exempt from income tax entirely. This makes Turkiye's effective entry-level tax cost lower than the first band rate suggests.
The income tax withholding table for 2026 under Income Tax Law No. 193 and Income Tax General Communique No. 332 runs as follows.
| Annual cumulative taxable income (TRY) | Rate |
|---|---|
| TRY 0/year to TRY 190,000/year | 15% |
| TRY 190,000/year to TRY 400,000/year | 20% |
| TRY 400,000/year to TRY 1,500,000/year | 27% |
| TRY 1,500,000/year to TRY 5,300,000/year | 35% |
| Above TRY 5,300,000/year | 40% |
Tax is withheld monthly on a cumulative basis over the calendar year. As cumulative income crosses each band boundary, the higher rate applies only to the portion above that threshold. Income earned at or below the minimum wage gross is exempt from income tax by statute, regardless of which band the totals would otherwise place it in.
BES employee deduction
The BES pension contribution of 3% of the SGK base is deducted monthly. Employees who do not opt out within two months have this amount taken automatically. Contributions are refunded if the employee opts out. The deduction reduces the employee's net pay but is not an employer cash cost.
Stamp tax on payroll
Turkey levies a stamp tax (damga vergisi) on employment contracts and payroll documents. The rate is a small percentage of the gross salary. The employer withholds it monthly. Severance payments are also subject to stamp tax at the applicable rate. Income tax and stamp tax are both remitted via the monthly combined declaration (muhtasar ve prim hizmet beyannamesi).
Leave and sick pay: the cost most buyers miss
Every employee in Turkiye with at least one year of service earns 14 days of paid leave per year for the first five years. Longer service earns more.
SGK pays sick benefit from day three. The first two days carry no statutory benefit. Employers are not legally required to top them up.
Leave costs in Turkiye are lower than in many Western European markets, but they are mandatory from the qualifying date and they increase with service.
| Entitlement | Amount | Statute |
|---|---|---|
| Annual leave (1 to 5 years service) | 14 days | Labour Law No. 4857, Art. 53 |
| Annual leave (5 to 15 years service) | 20 days (tiered rate, same statute) | Labour Law No. 4857, Art. 53 |
| Annual leave (over 15 years service) | 26 days (tiered rate, same statute) | Labour Law No. 4857, Art. 53 |
| Sick benefit waiting days | 2 days before SGK benefit starts | Law No. 5510, Art. 18 |
| SGK sick benefit rate (outpatient) | 66.67% of average daily earnings | Law No. 5510, Art. 18 |
| Maternity leave (singleton pregnancy, from May 2026) | 24 weeks total | Labour Law No. 4857, Art. 74 (as amended by Law No. 7578) |
| Paternity leave (from May 2026) | 10 days | Labour Law No. 4857, Art. Ek-2 (as amended by Law No. 7578) |
Maternity leave: changed in May 2026
Law No. 7578 (in force from 1 May 2026) extended maternity leave from 16 weeks to 24 weeks for a singleton pregnancy: 8 weeks prenatal plus 16 weeks postnatal. SGK pays two-thirds of average daily earnings throughout. The employer does not pay the salary during maternity leave. The employer's cost is the replacement cover and the administrative load, not the salary itself.
Paternity leave doubled
The same Law No. 7578 doubled paternity leave from 5 days to 10 days from 1 May 2026. The employer pays full salary during this period. Budget it as an employer cost, not an SGK offset.
Public holidays
Turkiye observes national and religious public holidays under Law on National Holidays and General Holidays No. 2429. The 2026 count includes secular national holidays plus Ramazan Bayrami and Kurban Bayrami. The exact total varies each year because the Islamic calendar holidays shift. The statutory baseline figure is listed in the cache as uncertain due to the lunar calendar variation. Plan for approximately two full weeks of public holidays in your annual staffing model.
A worked cost example for a Turkiye hire
All totals here are illustrative. They are computed from verified cached rates applied to a hypothetical gross salary. They are not statutory figures and will differ from your actual cost.
The SGK rate of 23.75% is the verified headline statutory rate. The income tax bands are verified for 2026. The worked example applies both to a hypothetical TRY 500,000 annual gross salary.
This example uses a hypothetical gross salary of TRY 500,000 per year (approximately TRY 41,667 per month) and applies the verified statutory rates from the Turkiye compliance cache. All outputs are illustrative. Actual costs will vary depending on sector SGK incentives, benefits in kind, and the applicable collective agreement if any.
| Line item | Rate | Illustrative annual amount (TRY) |
|---|---|---|
| Gross salary (hypothetical) | n/a | 500,000 |
| SGK employer contributions at 23.75% | 23.75% | 118,750 (illustrative) |
| Total illustrative employer cost before Teamed fee | Gross plus SGK | 618,750 (illustrative) |
| Loading as a percentage of gross | n/a | ~124% of gross (illustrative) |
These figures are illustrative. The SGK employer line is computed as 23.75% of TRY 500,000. The hypothetical monthly salary of TRY 41,667 is well below the SGK ceiling of approximately 297,270 TRY per month, so no ceiling applies. Sector discounts, if applicable, would reduce the SGK line. Add the Teamed fee of from $599 per employee per month in your chosen currency for the full picture.
Illustrative income tax on employee earnings
For the same TRY 500,000 gross, the employee's income tax is computed on a cumulative basis through the year. The first TRY TRY 190,000/year of taxable income attracts 15%. Earnings between TRY 190,000/year and TRY 400,000/year attract 20%. Earnings between TRY 400,000/year and TRY 1,500,000/year attract 27%. The TRY 500,000 gross sits inside band 3, so the blended effective rate is below the nominal 27% at that salary point. The exact net depends on the deduction base and any exempt allowances. Use the Employer Cost Calculator to run your own numbers.
The H1 2026 minimum wage in the cost model
The gross minimum wage is TRY 33,030/month in H1 2026. Income at this level is income-tax exempt. The employer still pays full SGK contributions on it. A mid-year review is scheduled for June 2026. If the H2 rate rises, the minimum-wage employer SGK cost rises proportionally. Build the review into your budget timeline if you are hiring at or near the floor.
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Set the gross salary
Agree a gross salary above the minimum wage floor. Check whether the role sits in a manufacturing sector that qualifies for the SGK discount.
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Apply the SGK employer rate
Apply the employer SGK rate to the full gross salary. Use the standard headline rate for budgeting unless you have confirmed sector discount eligibility.
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Model the income tax withholding
Work through the progressive bands to estimate monthly withholding. Remember that minimum wage income is exempt. Cumulative band crossings change the withholding rate through the year.
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Add leave and parental costs
Annual leave and paternity leave are paid by the employer. Maternity leave salary is covered by SGK. Build the leave calendar into your annual cost model.
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Review the mid-year minimum wage update
A minimum wage review is scheduled for June 2026. If the H2 rate changes, rerun the cost model. This affects both the salary floor and the SGK base for minimum-wage hires.
How does Teamed handle the Turkiye employer cost for you?
Teamed becomes your legal employer of record in Turkiye for from $599 per employee per month, with zero FX mark-up in any currency.
SGK filings, income tax withholding, BES pension deductions, leave tracking, and the full Turkish employment law stack run on one platform.
Real HR and legal experts handle your Turkiye hires from the first offer letter through every SGK declaration, muhtasar filing, and year-end reconciliation. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice. You see the SGK line, the income tax withholding line, and the BES deduction line. Nothing is blended into an opaque margin.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Turkiye contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Turkish entity without switching systems. EOR is the right model for a first Turkiye hire, until it isn’t. Start from the Turkiye hiring overview or run the Employer Cost Calculator to see the full picture.
Frequently asked questions
What does an employer pay on top of gross salary in Turkiye?
The employer pays SGK social insurance contributions at 23.75% of gross under the standard rate. This covers pension, health, short-term risks, and unemployment insurance. Manufacturing employers qualify for a 5-point discount to 18.75%. Non-manufacturing employers qualify for a 2-point discount to 21.75%. The employer also pays full salary during the 10 days of paternity leave.
What is the minimum wage in Turkiye in 2026?
The gross minimum wage is TRY 33,030/month for H1 2026, set by the Minimum Wage Determination Commission under Official Gazette No. 33119. Income earned at minimum wage is exempt from income tax. A mid-year review is due in June 2026 and may raise the H2 rate. SGK contributions still apply on minimum wage earnings.
How does income tax work for employees in Turkiye?
Employees pay income tax on a five-band progressive scale. The first band is 15% up to TRY 190,000/year annual taxable income. The top rate is 40% on income above TRY 5,300,000/year. Minimum wage income is fully exempt from income tax. The employer withholds and remits income tax monthly on a cumulative basis.
How much annual leave does an employee in Turkiye get?
Employees with one to five years of service earn 14 days of paid leave per year under Labour Law No. 4857, Article 53. Leave increases to 20 days for five to fifteen years and 26 days for over fifteen years. The qualifying condition is one year of continuous service including probation.
What changed in Turkiye employment law in 2026?
Two changes took effect in 2026. First, Law No. 7566 raised the SGK employer pension sub-rate from 11% to 12% from 1 January 2026, bringing the standard total employer SGK rate to 23.75%. Second, Law No. 7578 (effective 1 May 2026) extended maternity leave from 16 weeks to 24 weeks and doubled paternity leave to 10 days.
The most common gap we see in Turkiye cost models is forgetting that the SGK rate changed at the start of 2026. Law 7566 raised the pension sub-rate by a full percentage point. That sounds small, but on a team of twenty people it adds up fast. Check which rate your provider quoted and when they last updated their model.
SGK employer contributions in Turkiye hit 23.75% of gross in 2026 after Law 7566 raised the pension sub-rate.
Add income tax withholding on five progressive bands, BES pension deductions, and 14 days of paid leave, and the true employer cost sits well above the headline salary.
Know every line before you send the offer.
