The salary you agree with a candidate is only part of what employing them in Turkey costs. Social security contributions, unemployment insurance, mandatory severance, paid leave and — for foreign staff — the work permit add a predictable but substantial layer. This guide sets out the 2026 numbers and the rules a foreign-owned employer must follow from the first hire.
Two registrations must exist before an employee's first day:
Employees also need a written employment contract when the contract is for a year or more, and every employer must keep a personnel file with identity, address, education and health-surveillance records. Occupational health and safety obligations apply from the first employee, including risk assessment and training.
| Item | Rate | Paid by |
|---|---|---|
| Social security (SGK) — employee share | 14% | Employee (withheld) |
| Unemployment insurance — employee share | 1% | Employee (withheld) |
| Income tax | 15%–40% progressive; the minimum-wage portion is exempt | Employee (withheld) |
| Stamp tax | 0.759%; the minimum-wage portion is exempt | Employee (withheld) |
| Social security (SGK) — employer share | 21.75% in 2026, reduced by 2 points (5 points in manufacturing) for employers with no overdue SGK debt | Employer (on top) |
| Unemployment insurance — employer share | 2% | Employer (on top) |
Contributions are calculated on gross salary up to a ceiling (the "SGK ceiling"), which is a fixed multiple of the minimum wage; salary above the ceiling carries no social security but is still fully subject to income tax. Income tax on salaries is cumulative through the year, so an employee's net pay falls in the later months as they move into higher brackets — a point worth explaining to foreign staff who are used to flat monthly deductions.
Worked example — 2026 minimum wage: gross TRY 33,030 → employee SGK 4,624.20 and unemployment 330.30 → income tax and stamp tax nil (fully exempt at minimum wage) → net TRY 28,075.50. Employer adds its own SGK and unemployment contributions, giving a total cost of about TRY 40,214 with the standard 2-point incentive (≈21.75% on top of gross; ≈18.75% for manufacturers with the 5-point incentive). For higher salaries the employer add-on stays proportional while the employee's net percentage falls as income tax kicks in.
Turkey uses the social security system to subsidise employment, and the discounts are significant when claimed correctly:
Incentives are claimed on the monthly return; they cannot be recovered retroactively beyond a short window. This is where a payroll provider pays for itself.
A foreign employee needs a work permit, applied for by the employer through the Ministry of Labour and Social Security's online system (from abroad via a Turkish consulate; from inside Turkey if the person holds a residence permit of at least six months). The permit also serves as a residence permit. The main conditions the employer must meet:
Working without a permit is penalised on both sides: an administrative fine per foreigner for the employer, a fine and possible deportation for the employee, and the SGK treats the person as an unregistered worker with back-contributions due. If a work permit application is refused, the employee must not start work while an objection is pending.
We handle the payroll and SGK side of foreign employment. For the permit application itself we work alongside licensed immigration consultants so that the salary, job title and start date on the permit match what goes through payroll — mismatches are a common reason for later SGK inspections.
| Entitlement | Rule (Labour Law No. 4857) |
|---|---|
| Working time | 45 hours per week maximum; overtime paid at 150% (or 125% for hours above a contractual shorter week up to 45), capped at 270 hours per year with written consent |
| Paid annual leave | 14 days (1–5 years of service), 20 days (5–15 years), 26 days (15+ years); minimum 20 days for employees under 18 or over 50. Leave accrues after one year of service. |
| Public holidays | 14.5 days a year; work on a public holiday is paid double |
| Notice period | 2 weeks (under 6 months' service), 4 weeks (6–18 months), 6 weeks (18–36 months), 8 weeks (over 3 years) — either side; may be paid in lieu |
| Severance pay | 30 days' gross salary per year of service after one year, on termination by the employer without just cause, retirement, military service, or the employee's justified resignation; capped per year at the civil-service ceiling, updated in January and July |
| Probation | Up to 2 months (4 by collective agreement); termination without notice during probation |
| Job security | Employers with 30+ employees must have a valid reason to dismiss an employee with 6+ months' service; otherwise reinstatement or 4–8 months' compensation |
Severance is not funded in advance in Turkey; it is a liability that accrues silently. For budgeting, we advise foreign-owned employers to provision roughly one month's gross salary per employee per year from the start rather than discovering the amount at termination.
The 2026 gross minimum wage is TRY 33,030 per month, which is TRY 28,075.50 net for the employee. With the standard employer contribution incentive applied (2 points outside manufacturing), the total monthly cost to the employer is approximately TRY 40,214; a manufacturer with the 5-point incentive pays about TRY 39,223.
In 2026 the employer's social security share is 21.75% plus 2% unemployment insurance, i.e. 23.75% on top of gross salary before incentives. The standard incentive brings this to 21.75% for most employers and 18.75% for manufacturers. Severance and paid leave are additional costs that accrue over time.
Yes, with a work permit issued by the Ministry of Labour. The company applies; the foreign employee must in general be paid at least a multiple of the minimum wage that depends on the position, and the company normally needs five Turkish employees per foreign employee, with exemptions for certain foreign partners, long-term residents and high-turnover companies.
Yes. An employee whose contract ends for a reason other than their own resignation or serious misconduct, after at least one year of service, is entitled to 30 days' gross pay for each year of service, capped at a statutory ceiling per year that is updated every six months.
Not directly as an employee. A foreign company with no Turkish entity can engage people through a Turkish employer of record, open a branch or liaison office, or set up a subsidiary. Paying a person as a contractor when they work like an employee is reclassified by the SGK, with back-contributions and penalties.
We register your workplace, run payroll, file the monthly SGK and withholding returns and make sure you get every employer incentive you qualify for.
Book a Free Introductory CallIn English • Ankara office or online • info@cagrikorkmaz.com.tr • WhatsApp +90 532 462 96 65