How to run payroll in Turkey

The Turkey payroll cycle follows a monthly schedule. Most companies process payments on the last working day of the month or by the 5th of the following month.

Turkish labor law requires employees to be paid at least once per month. While monthly payments are standard, some companies opt for bi-weekly cycles, particularly in manufacturing or retail sectors.

Payment must be made within 10 days of the end of the pay period. This means if your pay period ends on March 31st, 2026, employees must receive their salary by April 10th, 2026.

Mandatory bonus payments

Turkey requires two additional salary payments beyond the standard 12 monthly salaries.

Religious holiday bonus (Ramazan Bayramı) is paid before Eid al-Fitr, typically in April or May 2026. The amount equals half of the monthly minimum wage (₺8,506 for 2026).

Sacrifice holiday bonus (Kurban Bayramı) is paid before Eid al-Adha, usually in June or July 2026. This also equals half the monthly minimum wage.

These bonuses are subject to income tax and social security contributions like regular salary. You'll withhold taxes at the employee's marginal rate and apply the standard 14% employee social security contribution.

Annual leave pay calculation

Annual leave pay is calculated at the employee's regular daily wage rate. This includes base salary plus any regular allowances like meal or transport supplements.

For employees with variable pay, use the average daily earnings from the three months preceding the leave period. Include overtime, commissions, and bonuses in this calculation.

Leave pay must be provided before the employee takes vacation. If an employee earns ₺15,000 monthly and takes 10 days of leave, they'll receive ₺5,000 in advance (₺15,000 ÷ 30 days × 10 days).

Unused annual leave must be paid out upon termination at the current wage rate, not the rate when leave was earned.

Payment methods and requirements

Bank transfer is the standard payment method in Turkey. Cash payments are only permitted for daily wage workers and must not exceed 30% of the monthly minimum wage (₺5,104 for 2026).

All salary payments must be made in Turkish Lira. Foreign companies can't pay employees in USD, EUR, or other foreign currencies, even if specified in the employment contract.

<infographic type="callout" data='{"variant":"requirement","title":"Bank account requirement","content":"Employees must provide a Turkish bank account for salary payments. International accounts aren't accepted for payroll purposes."}' />

You'll need each employee's IBAN and bank details for transfers. Most companies process payments through their corporate banking platform, which requires advance setup with employee banking information.

Mandatory payslip information

Turkish payslips must include specific information in Turkish language:

• Employee's full name and TC identification number
• Employer company name and tax number
• Pay period dates
• Gross salary breakdown by component
• All deductions itemized (income tax, social security, unemployment insurance)
• Net pay amount
• Year-to-date totals for gross pay, taxes, and deductions

Electronic payslips are acceptable if employees can access and print them. Many companies use email delivery or employee self-service portals.

Payslips must be provided within three working days of salary payment. Keep copies for at least 30 years as required by Turkish labor law.

Income tax in Turkey ranges from 15% to 40%, with the top rate kicking in at ₺1,900,000 annually.

Turkey uses a progressive tax system with five brackets. The tax-free threshold was eliminated in 2024, so all income is taxable from the first lira earned.

Income tax brackets

Here are Turkey's 2026 income tax rates:

Annual Income (₺)	Monthly Income (₺)	Tax Rate
₺0 - ₺110,000	₺0 - ₺9,167	15%
₺110,001 - ₺250,000	₺9,168 - ₺20,833	20%
₺250,001 - ₺650,000	₺20,834 - ₺54,167	27%
₺650,001 - ₺1,900,000	₺54,168 - ₺158,333	35%
Over ₺1,900,000	Over ₺158,333	40%

The tax calculation uses cumulative brackets. For example, someone earning ₺300,000 annually pays 15% on the first ₺110,000, 20% on the next ₺140,000, and 27% on the remaining ₺50,000.

Withholding requirements

You're responsible for withholding income tax from every payroll and remitting it to the Turkish Revenue Administration (Gelir İdaresi Başkanlığı).

Monthly filing and payment

Income tax withholdings must be filed and paid by the 23rd of the following month. If the 23rd falls on a weekend or holiday, the deadline moves to the next business day.

You'll file Form 94 (Muhtasar Beyanname) electronically through the GİB portal. This form shows total wages paid, tax withheld, and net payments for all employees.

Annual reconciliation

By March 31st each year, you must provide employees with their annual tax statements (Form 61). Employees use these forms for their personal tax returns if required.

High earners (over ₺650,000 annually) must file individual tax returns by March 31st, even though you've withheld tax throughout the year.

Tax registration

Before running your first payroll, you need a tax registration number from your local tax office. This typically takes 3-5 business days after incorporating your Turkish entity.

You'll also need to register for electronic filing through the GİB portal. This requires:

• Company tax registration certificate
• Authorized signatory identification
• Digital certificate for online submissions

Special tax considerations

Non-resident employees

Non-residents working in Turkey pay the same income tax rates but can't claim certain deductions available to residents. They're subject to withholding tax from their first day of work.

If someone becomes a Turkish tax resident (spends more than 6 months in Turkey), their tax treatment changes mid-year. You'll need to adjust withholdings accordingly.

Tax treaty benefits

Turkey has tax treaties with over 80 countries. These treaties can reduce withholding requirements for certain types of income, but employment income is typically taxed at full rates.

For employees from treaty countries, keep documentation of their home country tax residency. This becomes important for avoiding double taxation on any income that might be taxable in both countries.

Common tax mistakes

Incorrect bracket calculations are the most frequent error. Many payroll systems don't handle Turkey's cumulative bracket system properly, leading to under-withholding. The penalty is 2% monthly interest on the shortfall.

Missing the 23rd deadline costs 2% of the unpaid amount for the first month, then 2% for each additional month. File even if you can't pay immediately to avoid additional penalties.

Misclassifying contractors as employees triggers back-tax calculations with penalties. Turkish authorities are strict about employment relationships - if someone works exclusively for you with set hours, they're likely an employee for tax purposes.

Forgetting annual statements means employees can't file their returns properly. You'll face administrative fines starting at ₺1,000 per missing statement.

A ₺60,000 salary in Turkey actually costs you ₺78,120. Here's the breakdown.

Turkey's employer contributions add 30.2% to every salary, making them a significant budget consideration. You'll pay into five main systems: social security, unemployment insurance, occupational accident insurance, and two separate employment funds.

Contribution breakdown

Contribution Type	Employer Rate	Employee Rate	Monthly Cap
Social Security Insurance	20.5%	14%	₺89,750
Unemployment Insurance	3%	1%	₺89,750
Occupational Accident Insurance	0.2-6.5%	0%	None
Employment Guarantee Fund	0.5%	0%	None
Vocational Training Fund	1%	0%	None

The occupational accident rate varies by industry risk level. Most office-based roles pay 0.2%, while manufacturing and construction face higher rates up to 6.5%.

Total employer cost example

For a ₺60,000 monthly salary:

• Base salary: ₺60,000
• Social security: ₺12,300
• Unemployment: ₺1,800
• Accident insurance: ₺120 (office worker)
• Employment fund: ₺300
• Training fund: ₺600

Total employer cost: ₺75,120 Cost multiplier: 1.252

Contribution caps and ceilings

Social security and unemployment contributions cap at ₺89,750 monthly (₺1,077,000 annually) for 2026. This means high earners save you money on contributions once they hit this threshold in October.

For executives earning ₺150,000 monthly, your actual contribution rate drops to 18.1% instead of the standard 25.2% due to the cap.

Registration requirements

Register with SGK (Social Security Institution) within 30 days of hiring your first employee. You'll need:

• Company registration documents
• Tax registration certificate
• Workplace risk assessment (for accident insurance classification)
• Employee contracts and personal documents

Late registration triggers penalties of 0.1% daily on unpaid contributions, plus administrative fines starting at ₺15,000.

Payment deadlines

Contributions are due by the 23rd of the following month. For January salaries, pay contributions by February 23rd.

SGK accepts payments through banks, online banking, or their electronic system. Set up automatic payments to avoid the 0.1% daily penalty that compounds quickly on large payrolls.

Employees in Turkey get 14 days minimum vacation. That's nearly 3 weeks of paid leave to calculate, and it increases with tenure.

Annual leave

Turkish employees earn vacation days based on their years of service. Workers with 1-5 years get 14 days annually. Those with 5-15 years receive 20 days, and employees with 15+ years earn 26 days.

Vacation pay equals the employee's daily wage multiplied by days taken. Calculate daily wage by dividing monthly salary by 30.

Employees can carry forward unused vacation to the following year, but you must pay out all unused days upon termination. This includes accrued vacation for the current year, calculated proportionally.

Sick leave

Turkey provides generous sick leave coverage through its social insurance system. Employees get unlimited sick days with proper medical certification.

For the first 3 days, employees receive no pay unless your company policy provides it. From day 4 onwards, the Social Security Institution (SGK) pays 66% of the employee's daily wage.

You'll need a medical report from an authorized healthcare provider for sick leave longer than 3 days. The SGK handles payments directly to employees, so this doesn't flow through your payroll after the initial unpaid period.

Parental leave

Maternity leave

Female employees get 16 weeks of maternity leave - 8 weeks before birth and 8 weeks after. The SGK pays 66% of daily wages during this period.

You're not required to top up maternity pay, but many employers do to maintain full salary. If you choose to supplement, include this in your payroll calculations.

Paternity leave

Fathers get 5 days of paid paternity leave, fully paid by the employer. This comes directly from your payroll budget.

Public holidays 2026

Turkey observes both fixed and variable religious holidays. Variable dates depend on the lunar calendar.

Date	Holiday	Notes
January 1	New Year's Day	Fixed
March 30	Ramadan Feast Day 1	Variable
March 31	Ramadan Feast Day 2	Variable
April 1	Ramadan Feast Day 3	Variable
April 23	National Sovereignty Day	Fixed
May 1	Labor Day	Fixed
May 19	Commemoration of Atatürk	Fixed
June 6	Sacrifice Feast Day 1	Variable
June 7	Sacrifice Feast Day 2	Variable
June 8	Sacrifice Feast Day 3	Variable
June 9	Sacrifice Feast Day 4	Variable
July 15	Democracy Day	Fixed
August 30	Victory Day	Fixed
October 29	Republic Day	Fixed

Work performed on public holidays requires double pay - 200% of regular wages.

Mandatory benefits affecting payroll

13th month payment

Turkey requires a 13th month payment equal to one month's salary, paid before the Ramadan holiday. This significantly impacts your March payroll calculations.

Overtime premiums

Overtime work (beyond 45 hours weekly) gets paid at 150% of regular hourly rates. Weekend work commands 200% premiums.

Severance pay accrual

You must accrue severance pay equal to 30 days' salary for each year of service. While not paid monthly, this affects your financial planning and may require balance sheet provisions.

Most Turkish companies also provide meal vouchers and transportation allowances, though these aren't legally mandated. These benefits often qualify for tax advantages when structured properly.

Turkey tax authorities audit 15% of employers annually. Here's what they check.

The Social Security Institution (SGK) focuses heavily on contribution accuracy, employment contract compliance, and proper wage reporting. Missing documentation or calculation errors can trigger penalties starting at ₺2,500 per violation.

Monthly filing requirements

You'll submit three key reports each month through the SGK's online portal system.

SGK contribution declarations are due by the 23rd of the following month. Upload employee wage data, working days, and calculated contributions through the SGK Interactive portal. Late submissions incur ₺150 daily penalties plus 2.5% monthly interest on unpaid contributions.

Withholding tax returns must reach the Revenue Administration by the 26th of the following month. File through the GIB Interactive Tax Office portal with detailed employee income and tax withholding data. Penalties start at ₺1,200 for late filing.

Stamp duty payments are due monthly for employment contracts and payslips. Submit through your local tax office or online portal by month-end. The 2026 rate is 0.948% of documented amounts.

Annual reporting

Year-end reconciliation involves multiple government agencies and strict deadlines.

Annual income statements for employees must be issued by January 31st. These statements show total earnings, tax withheld, and SGK contributions. Employees need these for personal tax filings.

SGK annual reconciliation compares monthly filings with actual wages paid. Submit by February 28th through the SGK portal. Discrepancies trigger automatic audits and potential penalties of 50% of unpaid contributions.

Corporate income tax reporting includes detailed payroll expense breakdowns. File by April 30th with supporting payroll documentation for the full tax year.

The Revenue Administration requires annual withholding tax reconciliation by March 31st. This reconciles monthly filings with actual employee payments and tax withholdings.

Employee documentation

Employment contracts must be written in Turkish and registered with SGK within one month of hire. Missing or late registration incurs ₺3,000 penalties per employee.

Required contract elements include job description, salary details, working hours, probation period, and termination notice requirements. Contracts missing mandatory elements are legally invalid and can void employment protections.

Payslips must show gross salary, all deductions itemized, net pay, and cumulative year-to-date figures. Issue payslips before salary payment each month. Missing payslip elements result in ₺500 penalties per occurrence.

Keep all payroll records for 10 years minimum. This includes contracts, payslips, time records, leave documentation, and tax filings. Digital storage is acceptable but must be accessible for audit requests.

Penalties table

Violation	Penalty
Late SGK contribution filing	₺150 per day + 2.5% monthly interest
Late withholding tax filing	₺1,200 minimum + 2% monthly interest
Missing employee registration	₺3,000 per employee
Incomplete payslip information	₺500 per occurrence
Incorrect contribution calculation	50% of underpayment + interest
Missing employment contract	₺2,500 + contract invalidation
Late annual reconciliation	₺5,000 + automatic audit

Regulatory bodies

Social Security Institution (SGK) oversees employment registration, contribution collection, and workplace compliance. Access their services through the SGK Interactive portal at sgk.gov.tr.

Revenue Administration (GIB) handles income tax withholding, corporate tax matters, and stamp duty collection. Use the Interactive Tax Office portal at gib.gov.tr for all tax filings.

Ministry of Labor and Social Security enforces employment law compliance, working time regulations, and workplace safety standards. Contact regional offices for employment contract guidance.

For urgent compliance questions, SGK operates a hotline at 444-1-SGK (444-1-745). The Revenue Administration provides support through 444-0-GIB (444-0-442). Both agencies offer English-speaking support for international employers during business hours.

Minimum wage in Turkey increased 30% in 2026, from ₺17,002 to ₺22,103 per month. This significant jump reflects ongoing efforts to address inflation and protect worker purchasing power.

The increase affects all employees earning minimum wage and impacts your payroll calculations for overtime premiums, which are calculated based on hourly minimum wage rates.

Social security contribution ceiling raised - Effective January 1, 2026

The monthly social security premium ceiling increased to ₺165,773, up from ₺132,618 in 2025. This 25% increase means higher-earning employees will see larger deductions.

For employees earning above this threshold, you'll withhold social security premiums on the full ceiling amount rather than their actual salary.

New digital payslip requirements - Effective March 1, 2026

All employers must now provide payslips through the government's e-Bordro system. Paper payslips are no longer acceptable for compliance purposes.

You'll need to register with the Social Security Institution's digital platform and upload payroll data monthly. Late submissions carry penalties of ₺1,500 per employee.

Income tax brackets adjusted - Effective January 1, 2026

Tax brackets increased by approximately 45% to account for inflation:

Income Range (Monthly)	Rate
Up to ₺32,000	15%
₺32,001 - ₺70,000	20%
₺70,001 - ₺180,000	27%
₺180,001 - ₺380,000	35%
Over ₺380,000	40%

Upcoming changes

Starting July 2026, Turkey will implement mandatory electronic wage statements for all employees. The system will integrate with existing social security reporting, but you'll need additional software compliance by June 30, 2026.