From monthly salary calculations and SGK declarations to income tax withholding, severance processing, and expatriate payroll management, Celikel CPA delivers end-to-end payroll services that keep your Turkish operations fully compliant with Labor Law No. 4857, Social Security Law No. 5510, and Income Tax Law No. 193.
✓ Licensed CPA Firm Authorized by Turkish Ministry of Finance
✓ Bilingual Payroll Processing in English and Turkish
✓ Full KVKK (Law No. 6698) and GDPR Data Protection Compliance
Turkish payroll operates under multiple interconnected legal frameworks that impose strict compliance deadlines, complex calculation requirements, and severe penalties for non-compliance. Foreign companies entering the Turkish market and local businesses alike face a regulatory environment where payroll errors can carry significant financial and legal consequences.
Turkish Labor Law No. 4857 and Social Security Law No. 5510 impose strict obligations on employers. Non-compliance can result in administrative fines, back-payment obligations, late payment penalties with daily interest charges, and potential labor court proceedings. Professional payroll services protect your business from these exposures.
Payroll errors create direct financial consequences including overpayments that are difficult to recover, underpayments leading to employee disputes, incorrect tax calculations resulting in audit exposures, and missed opportunities for legal deductions. Accurate processing eliminates these risks from day one.
Accurate and timely salary payments build workforce trust and morale. Clear payslips with transparent calculations, proper social security registrations, and compliant leave entitlements strengthen employer-employee relations and reduce turnover.
Outsourced payroll eliminates the need for specialized in-house staff, avoids costly payroll software investments, and frees internal resources to focus on core business activities. This is particularly valuable for foreign companies that may not have local HR infrastructure.
Turkish payroll compliance spans several interconnected legislative frameworks: Labor Law No. 4857 (working hours, overtime, leave entitlements), Social Security Law No. 5510 (SGK registrations, premium calculations, monthly declarations), Income Tax Law No. 193 (progressive tax brackets, withholding obligations), Stamp Tax Law (0.759% on payroll documents), and Unemployment Insurance Law (employer and employee contributions). Each framework is subject to frequent updates, making continuous monitoring essential.
Staying current with the latest payroll rates and compliance thresholds is essential for accurate processing. The following tables summarize the key parameters for 2026.
| Parameter | 2026 Value |
|---|---|
| Monthly Gross Minimum Wage | TRY 33,030.00 |
| Monthly Net Minimum Wage | TRY 28,075.50 |
| Daily Gross Minimum Wage | TRY 1,101.00 |
| SGK Premium Ceiling (Monthly) | TRY 297,270.00 |
| Stamp Tax Rate | 0.759% |
| Minimum Wage Tax Exemption | Income Tax + Stamp Tax = 0 |
| Severance Pay Ceiling (H1 2026) | TRY 46,655.43 |
| Contribution Type | Employee | Employer | Total |
|---|---|---|---|
| Short-Term Insurance | - | 2.0% | 2.0% |
| General Health Insurance | 5.0% | 7.5% | 12.5% |
| Disability, Old Age and Death | 9.0% | 11.0% | 20.0% |
| Unemployment Insurance | 1.0% | 2.0% | 3.0% |
| Total SGK Contributions | 15.0% | 22.5% | 37.5% |
| Annual Taxable Income (TRY) | Rate |
|---|---|
| Up to 110,000 | 15% |
| 110,001 to 230,000 | 20% |
| 230,001 to 580,000 | 27% |
| 580,001 to 3,000,000 | 35% |
| Over 3,000,000 | 40% |
End-to-end payroll management solutions covering every aspect of employee compensation in Turkey. Our bilingual team handles everything from initial employee registrations to complex tax optimizations.
Complete gross-to-net salary calculations for all employees, including SGK premium calculations (employer and employee portions), progressive income tax withholding, stamp tax, overtime and bonus processing, deduction management, and net salary determination with bank payment instructions.
Pre-employment SGK registrations (mandatory before work commences), tax office registrations, employment contract preparation and review, employee master data maintenance, and complete termination processing with final settlement calculations.
Monthly premium and service declarations (Form 4/A), employee entry and exit notifications, SGK base salary determinations, premium payment tracking, SGK correspondence and query resolution, and full audit support with documentation preparation.
Monthly withholding tax declarations, annual income tax return preparation (Form 94), tax payment processing and tracking, exemption calculations and applications, tax optimization strategies, and tax authority correspondence on your behalf.
Work permit compliance verification, expatriate compensation structuring, tax residency determinations based on the six-month rule, social security totalization agreement navigation for eligible countries, and foreign currency salary management for international assignments.
Detailed monthly payslips in English and Turkish with comprehensive breakdowns of all earnings and deductions. Digital payslip delivery through secure employee portals, payslip archiving with 10-year retention, and custom formatting to match your corporate requirements.
Annual leave accrual calculations based on seniority (14, 20, or 26 working days), sick leave tracking, maternity and paternity leave processing, notice period calculations, severance pay determinations subject to the ceiling cap, and unused leave buyout calculations.
Monthly payroll summary reports, cost center allocation reports, department-wise breakdowns, tax and SGK liability forecasts, year-over-year comparisons, and custom reporting capabilities tailored to your headquarters' requirements.
Professional payroll processing in Turkey follows a structured monthly cycle designed to ensure accuracy, compliance, and timely employee compensation.
Gathering attendance records, overtime data, leave information, variable pay elements (bonuses, commissions), deductions (advances, garnishments), employee changes (new hires, terminations), and benefit payments. All data must be finalized by the monthly cut-off date.
Comprehensive gross salary computation covering base pay, overtime at 1.5x rate, bonuses, and allowances. Followed by precise SGK contribution calculations: employee portion (15%), employer portion (22.5% or 17.5% with discount), and unemployment insurance contributions.
Progressive income tax calculation using cumulative annual earnings to determine the applicable bracket (15% to 40%). Application of minimum wage tax exemption where eligible, stamp tax calculation at 0.759%, and final net salary determination after all deductions.
Detailed payslip generation with bilingual options, client review and approval cycle, followed by statutory SGK declarations (Form 4/A) by the 23rd of the following month and income tax withholding submissions within the same deadline.
Salary disbursement via bank transfer instructions, income tax payment by the 26th, SGK premium payment by month-end, and comprehensive monthly reports including cost center allocations, tax summaries, and archived documentation for 10-year retention.
Understanding how gross-to-net salary calculations work in Turkey helps employers plan labor costs accurately. Below are practical examples at different salary levels.
| Component | Rate | Amount (TRY) |
|---|---|---|
| Gross Salary | - | 33,030.00 |
| SGK Employee Contribution | 14% | (4,624.20) |
| Unemployment Insurance (Employee) | 1% | (330.30) |
| Income Tax | Exempt | 0.00 |
| Stamp Tax | Exempt | 0.00 |
| Net Salary (Take-Home) | - | 28,075.50 |
Minimum wage employees are fully exempt from Income Tax and Stamp Tax as of 2026. Employer total cost with 2-point SGK discount: TRY 40,214.03.
| Component | Rate | Amount (TRY) |
|---|---|---|
| Gross Salary | - | 75,000.00 |
| SGK Employee Contribution | 14% | (10,500.00) |
| Unemployment Insurance (Employee) | 1% | (750.00) |
| Income Tax (Progressive, 5th month) | 20-27% | (12,750.00) |
| Stamp Tax | 0.759% | (569.25) |
| Net Salary (Take-Home) | - | 50,430.75 |
Net-to-Gross Ratio: 67.24%. Total employer cost with 2-point SGK discount: TRY 92,812.50 (23.8% above gross).
Even experienced businesses encounter payroll difficulties in Turkey's complex regulatory environment. Below are the most frequently observed challenges and our professional solutions.
Minimum wage adjustments (often twice annually), SGK premium rate changes, tax bracket modifications, and new benefit regulations require continuous system updates. Our dedicated compliance team monitors all changes and updates payroll calculations immediately upon official announcements.
The 23rd of each month deadline for SGK declarations triggers automatic 4 per thousand daily penalties when missed. Our structured payroll calendar with built-in buffer periods and automated reminders maintains a consistent on-time filing record.
Work permits, tax residency determinations (six-month rule), potential SGK exemptions, currency considerations, and totalization agreements require specialized handling. Our expatriate payroll team navigates these requirements for every international assignment.
Incorrect severance calculations, improper notice periods, or documentation gaps lead to labor court cases. We conduct pre-termination calculation reviews, apply the severance ceiling correctly (TRY 46,655.43 for H1 2026), and prepare complete termination documentation packages.
Incorrect annual leave accruals based on seniority, failure to track unused leave balances, and mishandling of maternity and paternity leave create compliance risks. Our automated tracking system calculates entitlements by service date with month-end balance reporting.
Confusion over taxable versus exempt allowances, exceeding legal limits for meal allowances (TRY 370 per day) and transportation benefits (TRY 3,300 per month), and incorrect health insurance premium handling erode potential savings. We optimize benefit structures within all legal limits.
Turkish labor law mandates specific paid leave entitlements that employers must track and administer accurately. The annual leave duration increases with the employee's length of service.
| Service Duration | Annual Leave | Note |
|---|---|---|
| 1 to 5 years | 14 working days | Minimum for employees completing 1 year |
| 5 to 15 years | 20 working days | After completing 5 years of service |
| 15+ years | 26 working days | Maximum statutory entitlement |
| Under 18 years old | 20 working days minimum | Regardless of service length |
| Over 50 years old | 20 working days minimum | Regardless of service length |
Maternity Leave: 16 weeks (8 before, 8 after birth), fully paid. Paternity Leave: 5 days, fully paid. Bereavement Leave: 3 days for close family members. Marriage Leave: 3 days. Military Leave: Up to 90 days annually for mandatory exercises.
Missing payroll deadlines in Turkey triggers automatic penalties. The following table outlines the key submission and payment deadlines that employers must observe.
| Obligation | Frequency | Deadline | Penalty for Late Filing |
|---|---|---|---|
| SGK Employee Registration | Per hire | Before work commences | Severe fines + back-payment obligations |
| SGK Monthly Premium Declaration | Monthly | 23rd of following month | 4 per thousand daily penalty interest |
| SGK Premium Payment | Monthly | End of following month | Late payment interest + penalties |
| Income Tax Withholding Declaration | Monthly | 23rd of following month | 0.5% monthly tax penalty |
| 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 |
The decision to outsource payroll represents a strategic investment that extends beyond cost savings, delivering measurable advantages across compliance, efficiency, and resource allocation.
Eliminate dedicated payroll staff salaries, expensive software licenses, training costs for regulatory updates, and compliance penalty risks. Outsourced payroll typically reduces total payroll management costs by 40 to 60 percent compared to in-house processing.
Automatic updates for all regulatory changes, complete adherence to Labor Law No. 4857, SGK Law No. 5510, and Income Tax Law No. 193. Professional liability coverage and audit-ready documentation provide additional protection.
Seamless English-Turkish service for foreign companies, bilingual payslips and reporting for headquarters, Turkish compliance documentation for local authorities, and zero language barriers in complex payroll situations.
Scale payroll operations seamlessly as your workforce grows from 5 to 500+ employees without additional software investments or infrastructure changes. The same service framework adapts to your evolving needs.
Every industry faces unique payroll challenges. Our specialized solutions address sector-specific requirements while maintaining full compliance with Turkish labor regulations.
Shift-based pay differentials, night premiums, production incentive calculations, collective bargaining agreement compliance, and work accident reporting.
Equity compensation management, remote work handling, rapid scaling capacity, R&D incentive program compliance, and performance-based bonus structures.
Part-time and seasonal worker management, commission tracking, weekend and holiday premium pay, high-turnover payroll efficiency, and multi-location consolidation.
Project-based billing and compensation, partner profit-sharing models, flexible work arrangement management, professional development allowances, and billable hour integration.
At Celikel CPA, we understand that payroll is more than calculations. It is about protecting your business, supporting your employees, and enabling your growth in Turkey.
Payroll is one component of your Turkish operations. Celikel CPA provides integrated services including company formation, accounting and bookkeeping, tax compliance, audit services, and financial consultancy. When you combine services, your payroll data automatically integrates with accounting and tax processes for holistic compliance.