Turkey payroll and employer cost in 2026: what you pay on top of salary

In Turkey you pay about 21.75% on top of gross salary in 2026: 19.75% social security (SGK) employer share plus 2% unemployment insurance. A developer on USD 3,000 gross a month costs you about USD 3,653 a month and takes home about USD 2,005.

Checked October 2026. This page is for a US or German founder or hiring manager who wants to budget a hire in Turkey. It covers numbers only. It is general information, not legal or tax advice.

What does an employer pay on top of gross salary in Turkey?

Gross-to-employer-cost, 2026 (checked 7 October 2026)

Item	Who pays	Rate	Source
SGK employer share, full rate	Employer	21.75% (pension 12%, short-term 2.25%, health 7.5%)	EY Turkey on Law 7566, ÇSGB
Treasury reduction, most sectors	Employer	−2 points (so 19.75%)	SGK
Treasury reduction, manufacturing	Employer	−5 points until end of 2026 (so 16.75%)	SGK
Unemployment insurance	Employer	2%	ÇSGB
Total on top of gross, most sectors	Employer	21.75%	Calculated
Total on top of gross, no reduction	Employer	23.75%	Calculated
SGK employee share	Employee (from gross)	14%	ÇSGB
Unemployment insurance	Employee (from gross)	1%	ÇSGB
Income tax	Employee (from gross)	15% to 40%, see below	GİB
Stamp tax	Employee (from gross)	0.759% of gross above the minimum wage	ÇSGB PDF
SGK contribution ceiling	Both	297,270 TL gross a month	RSM Turkey

Only the first block is extra cost for you. The employee’s share, income tax and stamp tax come out of the gross salary; you withhold them and pay them to the state. So when you agree a salary, agree it as gross, and know what it means in net.

The 2-point reduction needs the employer to meet SGK’s conditions, such as filing and paying on time and having no SGK debt. If you hire through an employer of record, ask whether its quote uses 19.75% or 21.75%.

Above the ceiling of 297,270 TL gross a month, no more SGK or unemployment insurance is due, so the 21.75% applies only up to that amount.

How does income tax change the net salary?

Turkish payroll tax is cumulative over the calendar year. Each month’s tax uses the employee’s total taxable income since January. As the total crosses a bracket, the rate rises, so the same gross salary pays less net in autumn than in January. Salaries are usually agreed in gross, so this is the employee’s problem, but it shapes how candidates think about offers.

Income tax brackets on wages, 2026 (checked 7 October 2026)

Annual taxable wage income	Rate	Source
Up to 190,000 TL	15%	GİB
190,000 to 400,000 TL	20%	GİB
400,000 to 1,500,000 TL	27%	GİB
1,500,000 to 5,300,000 TL	35%	GİB
Above 5,300,000 TL	40%	GİB

Taxable income is gross minus the employee’s 15% SGK and unemployment share. Since 2022 the part of any salary equal to the minimum wage is free of income tax and stamp tax. In practice that cuts every employee’s tax by the tax that would be due on a minimum wage.

What is the minimum wage in Turkey in 2026?

33,030 TL gross a month for all of 2026. There was no mid-year raise.

Minimum wage, employer view, 2026 (checked 7 October 2026)

Item	Amount per month	Source
Gross minimum wage	33,030.00 TL	ÇSGB
Net to the employee	28,075.50 TL	ÇSGB PDF
SGK employer share (19.75%)	6,523.43 TL	ÇSGB PDF
Unemployment insurance, employer (2%)	660.60 TL	ÇSGB PDF
Total employer cost	40,214.03 TL	ÇSGB PDF
In USD (49.0918 TL, 6 Oct 2026)	about USD 819	Calculated, TCMB rate

For a developer hire the minimum wage matters less as a floor and more as a tax rule: it sets the tax-free part of every salary. A new minimum wage for 2027 is usually announced in December; check this page then.

What does a USD 3,000 a month developer cost?

Assumptions: gross salary USD 3,000 a month, converted at the TCMB buying rate of 6 October 2026 (49.0918 TL per USD), so 147,275.40 TL gross. Software company, so the 2-point SGK reduction applies. Single employer, full year, no other benefits. The salary is paid in Turkish lira.

Worked example: USD 3,000 gross developer, 2026 (calculated 7 October 2026)

Line	TL a month	USD a month
Gross salary	147,275.40	3,000
+ SGK employer share 19.75%	29,086.89	592
+ Unemployment insurance employer 2%	2,945.51	60
Total employer cost	179,307.80	3,653
− SGK employee share 14%	20,618.56	420
− Unemployment insurance employee 1%	1,472.75	30
− Income tax, January (after minimum-wage exemption)	14,566.29	297
− Income tax, October	28,184.60	574
− Stamp tax (0.759% of gross above minimum wage)	867.12	18
Net, January	109,750.68	2,236
Net, October	96,132.36	1,958
Net, average over 2026	98,450.97	2,005

How to read it:

• Your cost is flat: about USD 3,653 a month, or 21.75% on top of gross.
• The developer’s net falls from about USD 2,236 in January to about USD 1,958 by autumn, as their year-to-date income moves into the 27% bracket. The year average is about USD 2,005, so roughly 55% of your total cost reaches the employee.
• USD figures move with the lira. If you promise a USD-linked salary, write down how and when it is converted to lira.
• An EOR fee or an accountant comes on top. For market salary levels by seniority, see Turkish developer salaries.

Our calculation follows the monthly method used by Turkish payroll software. Your payroll provider’s figure can differ by a few lira because of rounding.

What do severance and notice cost when you end a contract?

Severance and notice, 2026 (checked 7 October 2026)

Rule	Amount	Source
Severance (kıdem tazminatı)	30 days of gross pay per full year of service, after 1 year	Labour Law 1475, Art. 14 (still in force)
Severance pay cap, 1 Jul to 31 Dec 2026	73,729.87 TL per year of service	Cumhuriyet (press report; official circular not checked)
Tax on severance	Free of income tax up to the cap; 0.759% stamp tax	GİB wage guide
Notice, under 6 months’ service	2 weeks	Labour Law 4857, Art. 17
Notice, 6 months to 1.5 years	4 weeks	Labour Law 4857, Art. 17
Notice, 1.5 to 3 years	6 weeks	Labour Law 4857, Art. 17
Notice, over 3 years	8 weeks	Labour Law 4857, Art. 17

The employer may pay the notice period in cash instead of having the person work it. Severance is owed when the employer ends the contract (except for serious misconduct), and in some cases when the employee leaves, for example for military service, retirement or, for women, within a year of marriage. It is not owed when an employee simply resigns.

For the USD 3,000 developer, gross pay of 147,275.40 TL is above the cap, so severance is the cap: about 73,730 TL (about USD 1,502) per full year. After 2 years, ending the contract costs about 147,460 TL of severance plus 6 weeks’ notice pay. Budget about one month of cap per year as a provision.

The severance cap changes every January and July. We could not open the official circular for July 2026, so treat 73,729.87 TL as reported, not confirmed.

What else should you budget for?

• Meal and transport allowances. Common in Istanbul offers, not required by law. They have their own tax-free limits.
• Private health insurance. Common for developers, not required. SGK health cover is already in the employer share.
• Annual leave. 14 to 26 working days a year by law, depending on service. It is paid, not extra cost, unless unused leave is paid out at exit.
• Payroll or EOR fee. If you have no Turkish company, someone has to run payroll. See employer of record in Turkey for fees, or contractor vs employee in Turkey if you are thinking of a contract instead.

Rates on this page change each January (minimum wage, tax brackets, SGK ceiling) and each July (severance cap). We recheck this page monthly.