Navigate Turkey's complex payroll landscape with confidence through our specialized payroll management solutions
Managing payroll in Turkey requires meticulous attention to detail, comprehensive knowledge of constantly evolving labor laws, and strict adherence to social security (SGK) and tax regulations. For foreign companies establishing operations in Turkey and local businesses alike, the complexity of Turkish payroll compliance can be overwhelming without proper expertise and systems in place.
At Celikel CPA, we specialize in providing end-to-end payroll services in Turkey tailored specifically for international businesses and Turkish companies seeking professional payroll management. Our bilingual team combines deep local expertise with international standards to deliver seamless payroll processing that ensures full compliance while optimizing your operational efficiency.
Turkish labor legislation undergoes frequent updates, and non-compliance can result in significant penalties, legal disputes, and reputational damage. Professional payroll services eliminate these risks by ensuring accurate calculations, timely submissions, and complete regulatory adherence.
Our team provides comprehensive support in both English and Turkish, ensuring clear communication and seamless collaboration with foreign companies navigating the Turkish business environment.
Stay ahead of regulatory changes with our expert monitoring of Turkish Labor Law (No. 4857), Social Security Law (No. 5510), and Income Tax Law (No. 193), ensuring your payroll remains compliant at all times.
From work permits to expatriate compensation packages, we handle the unique payroll requirements of foreign nationals and international organizations operating in Turkey.
Never miss critical deadlines for SGK declarations, tax submissions, or salary disbursements with our streamlined payroll processing systems and proactive deadline management.
Understanding the strategic importance of professional payroll management in the Turkish business environment
Payroll management in Turkey extends far beyond simple salary calculations. It represents a complex intersection of labor law compliance, tax regulations, social security obligations, and employee welfare management. For businesses operating in Turkey—whether newly established foreign entities or expanding local companies—the stakes of payroll mismanagement are considerably high.
Turkish Labor Law No. 4857 and Social Security Law No. 5510 impose strict requirements on employers. Non-compliance can result in:
Payroll errors create direct financial consequences:
Payroll quality directly impacts your workforce:
Outsourced payroll services free your resources:
Many businesses underestimate the complexity of Turkish payroll, leading to costly errors:
Turkey's payroll system operates under multiple interconnected legal frameworks that require expertise to navigate effectively:
Stay current with the latest payroll regulations, rates, and compliance obligations in Turkey for 2025
The Turkish payroll landscape for 2025 reflects ongoing economic adjustments and regulatory refinements designed to balance employee protection with business sustainability. Understanding these updated parameters is essential for maintaining full compliance and avoiding costly penalties.
Gross Monthly Minimum Wage: TRY 26,005.50
Hourly Rate (based on 45-hour week): TRY 115.58
Effective Date: January 1, 2025
The minimum wage applies universally across all industries and regions in Turkey. Collective bargaining agreements may establish higher rates for specific sectors. Employers must ensure all full-time employees receive at least the minimum wage, with proportional calculations for part-time workers.
Social security contributions form the foundation of Turkey's employee protection system. Both employers and employees contribute to the Social Security Institution (SGK) based on gross salary calculations.
| Contribution Type | Employer Rate | Employee Rate | Total Rate |
|---|---|---|---|
| Short-Term Insurance (Work accidents & occupational diseases) | 2.0% | — | 2.0% |
| General Health Insurance | 7.5% | 5.0% | 12.5% |
| Disability, Old Age & Death Insurance | 11.0% | 9.0% | 20.0% |
| Unemployment Insurance | 2.0% | 1.0% | 3.0% |
| TOTAL SGK CONTRIBUTIONS | 22.5% | 15.0% | 37.5% |
Employers meeting specific criteria under Article 81(ı) of Law No. 5510 may qualify for a 5-percentage-point reduction in their employer SGK contribution rate, reducing it from 22.5% to 17.5%. Qualifying conditions include:
Turkey operates a progressive income tax system where tax rates increase with higher income levels. Employers must calculate and withhold income tax monthly based on cumulative annual earnings.
| Annual Income Range (TRY) | Tax Rate | Progressive Calculation |
|---|---|---|
| Up to 110,000 | 15% | First 110,000 TRY × 15% |
| 110,001 - 230,000 | 20% | 16,500 + (amount over 110,000) × 20% |
| 230,001 - 580,000 | 27% | 40,500 + (amount over 230,000) × 27% |
| 580,001 - 3,000,000 | 35% | 135,000 + (amount over 580,000) × 35% |
| Over 3,000,000 | 40% | 982,000 + (amount over 3,000,000) × 40% |
The income tax exemption introduced in 2024 continues in 2025. Employees earning at or near minimum wage benefit from a tax exemption equivalent to the tax calculated on the minimum wage amount. This exemption is automatically applied in monthly payroll calculations and significantly reduces the tax burden for lower-income earners.
Rate: 0.759% of gross salary (unchanged since 2015)
Application: Applied to employment contracts, salary payments, and payroll-related documents
Payment: Typically borne by the employer and included in total employment costs
Exemptions: Certain low-income workers may qualify for stamp tax exemptions based on annual income thresholds
| Length of Service | Annual Paid Leave Days | Notes |
|---|---|---|
| 1 - 5 years | 14 working days | Minimum for new employees completing 1 year |
| 5 - 15 years | 20 working days | Applies after completing 5 years of service |
| 15+ years | 26 working days | Maximum statutory entitlement |
| Under 18 years old | 20 working days (minimum) | Regardless of length of service |
| Over 50 years old | 20 working days (minimum) | Regardless of length of service |
Additional Leave Types:
First Half 2025 (January 1 - June 30): TRY 46,655.43
Calculation Formula: 1 month's gross salary × years of service (subject to ceiling)
Eligibility: Employees completing at least 1 year of service and terminating employment under qualifying conditions (unjust dismissal, retirement, military service, marriage for female employees, etc.)
| Obligation | Frequency | Deadline | Penalty for Late Filing |
|---|---|---|---|
| SGK Employee Registration (New Hires) | Per hire | Before work commences | Severe fines + back-payment obligations |
| SGK Monthly Premium Declaration | Monthly | 23:59 on the 23rd of following month | 4‰ daily penalty interest |
| SGK Premium Payment | Monthly | End of month following declaration | Late payment interest + penalties |
| Income Tax Withholding Declaration | Monthly | 23rd of following month | 0.5% tax penalty per month |
| Income Tax Withholding Payment | Monthly | 26th of following month | Late interest + penalties |
| Annual Income Tax Return | Annually | March 31 of following year | Tax penalties + late interest |
End-to-end payroll management solutions designed for businesses operating in Turkey
At Celikel CPA, we provide a full spectrum of payroll services that cover every aspect of employee compensation management in Turkey. Our bilingual team handles everything from initial employee registrations to complex tax optimizations, ensuring your business remains fully compliant while minimizing administrative burden.
Complete monthly payroll processing including:
Complete employee lifecycle management:
Complete Social Security Institution compliance:
Complete income tax compliance management:
Strategic guidance beyond basic processing:
Modern payroll technology solutions:
Every payroll service we provide comes with our guarantee of accuracy, timeliness, and full regulatory compliance. Our bilingual team ensures seamless communication, and our deep understanding of Turkish labor law protects your business from costly compliance failures.
Let our expert team handle your Turkish payroll complexities while you focus on growing your business. Contact us today for a customized payroll solution tailored to your specific needs.
Contact Our Payroll SpecialistsUnderstanding the complete payroll cycle from data collection to final disbursement
Professional payroll processing in Turkey follows a structured monthly cycle that ensures accuracy, compliance, and timely employee compensation. Our systematic approach eliminates errors and maintains perfect regulatory adherence throughout every stage.
We gather all necessary information for accurate payroll processing:
Cut-Off Date: Typically the 5th of each month for the previous month's payroll. All data must be finalized and validated by this date.
Comprehensive calculation of total employee compensation:
Quality Control: All calculations reviewed for accuracy and consistency with employment contracts.
Precise calculation of social security obligations:
Compliance Check: Ensuring all calculations align with current SGK regulations and premium tables.
Progressive tax calculations based on cumulative annual income:
Optimization: Ensuring all legal tax exemptions and deductions are properly applied.
Final calculation of employee take-home pay:
Verification: Cross-checking net amounts against minimum wage requirements and employment contracts.
Creating detailed, transparent payroll documentation:
Statutory declarations to government authorities:
Deadline Management: Ensuring all submissions are completed before legal deadlines to avoid penalties.
Secure and timely payment processing:
Remitting withheld amounts to government:
Comprehensive record-keeping and client reporting:
Understanding gross-to-net calculations with real-world examples for 2025
Payroll calculations in Turkey follow a specific sequence that transforms gross salary into net take-home pay. These examples demonstrate how different salary levels and employment scenarios affect final employee compensation and employer costs.
Position: Entry-level employee | Gross Monthly Salary: TRY 26,005.50 (minimum wage)
| Calculation Component | Rate/Amount | Amount (TRY) | Cumulative |
|---|---|---|---|
| GROSS SALARY | — | 26,005.50 | 26,005.50 |
| Employee Deductions: | |||
| SGK Employee Contribution (15%) | 15% | (3,900.83) | 22,104.67 |
| Unemployment Insurance - Employee (1%) | 1% | (260.06) | 21,844.61 |
| Taxable Base (for income tax) | — | 21,844.61 | — |
| Income Tax (15% bracket) | 15% | (3,276.69) | — |
| Less: Minimum Wage Tax Exemption | Tax relief | +3,276.69 | 21,844.61 |
| Stamp Tax (0.759%) | 0.759% | (197.42) | 21,647.19 |
| NET SALARY (Take-Home) | — | 21,647.19 | — |
| Gross Salary | TRY 26,005.50 |
| SGK Employer Contribution (22.5%) | TRY 5,851.24 |
| Unemployment Insurance - Employer (2%) | TRY 520.11 |
| Stamp Tax (typically employer-paid) | TRY 197.42 |
| TOTAL EMPLOYER COST | TRY 32,574.27 |
Net-to-Gross Ratio: 83.24% | Employer Cost Premium: 25.3% above gross salary
Position: Marketing Manager | Gross Monthly Salary: TRY 75,000
| Calculation Component | Rate/Amount | Amount (TRY) | Cumulative |
|---|---|---|---|
| GROSS SALARY | — | 75,000.00 | 75,000.00 |
| Employee Deductions: | |||
| SGK Employee Contribution (15%) | 15% | (11,250.00) | 63,750.00 |
| Unemployment Insurance - Employee (1%) | 1% | (750.00) | 63,000.00 |
| Taxable Base | — | 63,000.00 | — |
| Income Tax (assumes 5th month of year) | Progressive | (12,600.00) | — |
| Stamp Tax (0.759%) | 0.759% | (569.25) | 49,830.75 |
| NET SALARY | — | 49,830.75 | — |
Tax Calculation Note: For a TRY 75,000 monthly salary, cumulative annual income after 5 months = TRY 315,000 (after SGK deductions). This places the employee in the 27% tax bracket for amounts exceeding TRY 230,000 annually. The monthly tax is calculated progressively on the cumulative taxable income.
| Employer Cost Summary | |
|---|---|
| Gross Salary | TRY 75,000.00 |
| SGK Employer (22.5%) | TRY 16,875.00 |
| Unemployment Insurance - Employer (2%) | TRY 1,500.00 |
| Stamp Tax | TRY 569.25 |
| TOTAL EMPLOYER COST | TRY 93,944.25 |
Net-to-Gross Ratio: 66.44% | Employer Cost Premium: 25.3% above gross
Position: CFO | Base Gross Salary: TRY 150,000 | Benefits: Company car, meal allowance, private health insurance
| Compensation Component | Monthly Amount (TRY) | Tax Status |
|---|---|---|
| Base Gross Salary | 150,000.00 | Fully taxable |
| Meal Allowance (within legal limit) | 240.00 | Tax Exempt |
| Transportation Allowance | 2,120.00 | Tax Exempt |
| Private Health Insurance Premium | 3,500.00 | Partially Exempt |
| Company Car Benefit (taxable portion) | 5,000.00 | Taxable |
| Total Gross Compensation | 160,860.00 | — |
| SGK Base (excluding exempt allowances) | 155,000.00 | — |
Key Benefit Optimization Notes:
Position: Foreign Technical Expert | Gross Monthly Salary: EUR 5,000 equivalent in TRY | Work Permit: Valid | Tax Residency: Turkey
Special Considerations for Foreign Employees:
| Scenario | Tax Treatment | SGK Requirement |
|---|---|---|
| Foreign national, <6 months in Turkey | Non-resident tax (only Turkey-source income) | May be exempt with home country coverage |
| Foreign national, >6 months in Turkey | Resident tax (worldwide income in Turkey) | Full SGK enrollment required |
| Turkish citizen returning from abroad | Resident tax from day 1 | Full SGK enrollment required |
Position: Part-time customer service | Working Hours: 20 hours/week (vs standard 45 hours/week) | Proportional Gross Salary: TRY 11,558.00 (44.4% of minimum wage)
Part-Time Calculation Principles:
Example: Employee with TRY 30,000 gross monthly salary works 10 overtime hours
*Standard monthly hours = 45 hours/week × 52 weeks / 12 months ≈ 195 hours (using 225 for calculation simplicity in Turkey)
Weekend Work: National public holidays are paid at double rate (2.0×)
Example: Employee works 8 hours on a public holiday
Note: Turkey recognizes 15 official public holidays annually, all requiring full pay even if not worked.
Our expert team handles all payroll calculation complexities—from minimum wage workers to executive compensation packages. We ensure 100% accuracy while maximizing legal tax optimizations for your business.
Get Professional Payroll SupportAddressing the most frequent payroll difficulties faced by businesses operating in Turkey
Even experienced businesses encounter payroll challenges in Turkey's complex regulatory environment. Understanding these common issues and implementing professional solutions prevents costly errors and ensures smooth operations.
Problem: Turkish payroll regulations, tax brackets, and social security rates change frequently—sometimes multiple times per year. Businesses struggle to keep pace with minimum wage adjustments, tax law modifications, and SGK premium updates.
Impact:
Our Solution:
Problem: The 23rd of each month deadline for SGK declarations (11:59 PM sharp) creates intense pressure. Late submissions trigger automatic daily penalties at 4‰ (four per thousand), accumulating rapidly.
Impact:
Our Solution:
Problem: Foreign workers require specialized handling: work permits, tax residency determinations, potential SGK exemptions, currency considerations, and totalization agreements.
Impact:
Our Solution:
Problem: Terminations create high-risk scenarios. Incorrect severance calculations, improper notice periods, or documentation gaps lead to labor court cases.
Impact:
Our Solution:
Issues:
Our Approach:
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Our Approach:
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Our Approach:
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Our Approach:
Challenge: Turkey's increasing digitalization mandates (e-declarations, e-archives, digital signatures) create technical barriers for businesses without proper systems.
Our Technology Solutions:
Immediate Actions:
Prevention: Our multi-checkpoint process ensures 99.9% on-time filing rate
Resolution Process:
Prevention: Clear payslips and proactive employee communication
Why professional payroll management delivers superior value compared to in-house processing
The decision to outsource payroll represents a strategic investment that extends far beyond simple cost considerations. For businesses operating in Turkey—particularly foreign companies navigating unfamiliar regulations—professional payroll services deliver measurable advantages across compliance, efficiency, and strategic resource allocation.
Direct Cost Savings:
Hidden Cost Avoidance:
Regulatory Expertise:
Risk Mitigation:
Time Savings:
Process Excellence:
Business Concentration:
Data Insights:
Protection Measures:
| Factor | In-House Payroll | Outsourced Payroll |
|---|---|---|
| Monthly Cost | Salary + benefits + software + overhead ~TRY 35,000-50,000+ | Fixed service fee Typically 40-60% less |
| Compliance Risk | High (depends on staff expertise) Personal liability for errors | Minimal Professional liability coverage |
| Regulatory Updates | Manual monitoring required Training costs Potential delays | Automatic Immediate implementation Zero additional cost |
| Technology | Software purchase/licensing Maintenance Upgrades | Included in service Latest technology No capital investment |
| Scalability | Difficult Hire additional staff More software licenses | Seamless Same service fee structure Instant capacity |
| Employee Turnover Risk | High impact Knowledge loss Rehiring costs | Zero impact Continuous service Team redundancy |
| Audit Support | Internal team pressure Potential external consultant costs | Included Expert defense Complete documentation |
| Processing Time | 5-10 days/month Employee distraction | 1-2 days review only Minimal internal involvement |
Operating in Turkey while managing from abroad requires seamless English-Turkish communication:
Navigate Turkey's unique business environment with insider knowledge:
Scenario: Company with 25 employees
| Cost Component | In-House Annual | Outsourced Annual | Savings |
|---|---|---|---|
| Payroll Staff (salary + benefits) | TRY 480,000 | — | — |
| Payroll Software | TRY 60,000 | — | — |
| Training & Updates | TRY 25,000 | — | — |
| Office Space & Equipment | TRY 35,000 | — | — |
| Outsourcing Service Fee | — | TRY 240,000 | — |
| Total Annual Cost | TRY 600,000 | TRY 240,000 | TRY 360,000 (60%) |
Additional Benefits: Risk reduction, compliance guarantee, strategic time savings, scalability—value impossible to quantify in direct cost terms alone.
Stop struggling with complex Turkish payroll regulations. Partner with experienced professionals who guarantee accuracy, compliance, and peace of mind—at a fraction of in-house costs.
Contact Our Payroll SpecialistsTailored payroll management for different business sectors in Turkey
Every industry faces unique payroll challenges. Our specialized solutions address sector-specific requirements while maintaining full compliance with Turkish labor regulations.
Each industry operates under unique regulations beyond standard labor law. Our team maintains deep expertise across all major sectors, ensuring your payroll reflects both general Turkish employment law and industry-specific requirements. Whether you're subject to collective bargaining agreements, occupational health regulations, or sector-specific incentive programs, we ensure full compliance while optimizing your compensation structures.
Quick answers to common payroll questions from businesses operating in Turkey
Our payroll specialists are ready to address your specific questions and provide detailed guidance on Turkish payroll compliance, calculations, and best practices.
Contact Our Payroll SpecialistsExperience the peace of mind that comes with professional, bilingual payroll management designed specifically for businesses operating in Turkey
At Celikel CPA, we understand that payroll is more than calculations—it's about protecting your business, supporting your employees, and enabling your growth. Our specialized team combines deep Turkish labor law expertise with international service standards to deliver payroll solutions that eliminate compliance risks while freeing your resources for strategic priorities.
Contact us today for a free consultation and discover how our professional payroll services can transform your operations while guaranteeing full compliance with Turkish regulations.
Email: yigit@celikelcpa.com
Phone: +90 (544) 649 40 87
Office: Dap Vazo Ofis, Maltepe, Istanbul
Business Hours: Monday - Friday, 9:00 AM - 6:00 PM (Turkey Time / GMT+3)
"Switching to Celikel CPA's payroll services was one of the best decisions for our Turkish operations. Their bilingual team eliminated all our compliance concerns, and we've had zero payroll issues since partnering with them. Professional, responsive, and truly expert in Turkish regulations."
— International Technology Company, Istanbul
Beyond payroll, we offer comprehensive solutions for your entire Turkish business operation
Payroll is just one component of successful business operations in Turkey. Celikel CPA provides integrated services that work together seamlessly, ensuring your company maintains complete compliance while focusing on growth and profitability.
Establish your legal presence in Turkey with our comprehensive company formation services:
Professional bookkeeping and financial accounting for Turkish operations:
Expert tax advisory and compliance management:
Independent audit and assurance services:
Strategic advisory for Turkish market success:
Expert financial planning and advisory:
Expert guidance on operating in Turkey's Free Trade Zones for tax and customs advantages. Free zones offer unique benefits for international trade, manufacturing, and logistics operations.
Key benefits include: customs duty exemptions, VAT advantages, simplified bureaucracy, foreign currency operations, and profit repatriation flexibility.
Set up a non-commercial presence in Turkey for market research, procurement, and representation activities without full company formation requirements.
Ideal for companies testing the Turkish market before full investment commitment, conducting market research, or managing local supplier relationships.
When you combine our payroll services with other Celikel CPA offerings, you benefit from:
Managing separate providers for payroll, accounting, tax, and legal matters creates coordination challenges and potential compliance gaps. With Celikel CPA's integrated approach:
Growing companies benefit from scalable services that adapt to changing needs—start with essentials and expand as you grow:
Large organizations require sophisticated, integrated solutions:
Schedule a consultation to learn how combining our payroll services with accounting, tax, and advisory solutions creates a comprehensive compliance and growth framework for your Turkish operations.
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