Income tax
Türkiye taxes employment income under Income Tax Law (GVK) Article 103, with the 2026 tariff set by General Communiqué No. 332. Tax is withheld monthly on the cumulative annual base (kümülatif matrah), so an employee’s marginal rate rises during the calendar year.
| Annual taxable wage income (TRY) | Rate |
|---|---|
| 0 – 190,000 | 15% |
| 190,000 – 400,000 | 20% |
| 400,000 – 1,500,000 | 27% |
| 1,500,000 – 5,300,000 | 35% |
| Above 5,300,000 | 40% |
There is no general personal allowance. Instead, the minimum-wage portion of every wage is exempt from income tax and from the 0.759% stamp tax (GVK Art. 23/18). Employee SGK and unemployment contributions are deducted from the tax base.
Social security (SGK)
Contributions are due under Law No. 5510. Law No. 7566 raised the employer pension share and the ceiling from 1 January 2026.
| Branch | Employer | Employee |
|---|---|---|
| Old age, disability and death | 12% | 9% |
| General health insurance | 7.5% | 5% |
| Short-term branches (work injury, maternity) | 2.25% | – |
| Unemployment insurance | 2% | 1% |
| Total | 23.75% | 15% |
A Treasury incentive lowers the employer rate. Most employers get 2 points (cut from 4 by Law 7566) and pay 21.75%. Manufacturing keeps 5 points until 31 December 2026 and pays 18.75%. The incentive requires no overdue SGK or tax debt and timely filing.
The 2026 insurable wage runs from TRY 33,030 to TRY 297,270 a month, which is 9 times the gross minimum wage.
Foreign employees with a Turkish work permit are insured at the same rates. An exemption is possible only under a bilateral social security agreement, with a certificate of coverage.
Severance (kıdem tazminatı)
Under Law No. 1475 Article 14, an employee with at least one year of service earns 30 days’ gross wage per year of service, pro rata, including regular cash and in-kind benefits. It is due on dismissal (except for just cause), on resignation for retirement, military service or just cause, on resignation by a woman within one year of marriage, and on death.
The amount per year of service is capped. The ceiling was TRY 64,948.77 for January to June 2026. For July to December 2026 it is reported as TRY 73,729.87, though some outlets print 73,729.84. The Ministry of Treasury and Finance circular is authoritative. Only stamp tax is deducted from kıdem.
Notice pay (ihbar tazminatı, Labour Law Art. 17) is separate: 2 weeks under 6 months’ service, 4 weeks for 6–18 months, 6 weeks for 18 months to 3 years, and 8 weeks above 3 years.
Wage payment rules
There is no wage protection system like those in the Gulf. Wages are paid at least monthly (Labour Law Art. 32). If wages are unpaid 20 days after the due date, the worker may refuse to work (Art. 34), and late wages bear interest. Employers above a headcount threshold must pay through bank accounts; check the current threshold in the bank-payment regulation.
Working time and leave
- Hours: up to 45 a week and 11 a day.
- Overtime: 50% premium above 45 hours a week. Where contract hours are below 45, hours up to 45 earn 25%. Overtime is capped at 270 hours a year and needs the worker’s consent.
- Public holidays: work on a holiday earns an extra day’s wage (100% premium).
- Annual leave: 14 working days for 1–5 years’ service, 20 days for 5–15 years, and 26 days from 15 years. Employees aged 18 or under, or 50 or over, get at least 20 days.
- Maternity leave: Law No. 7578 (May 2026) set 24 weeks: 8 before and 16 after birth, with income replacement paid by SGK. Paternity leave is 10 days. Check the transitional rules and SGK payment for the added weeks against the law text.
Minimum wage
The gross minimum wage is TRY 33,030 a month from 1 January 2026, or TRY 28,075.50 net. Press reports say there was no mid-year increase in July 2026.
Gotchas for foreign employers
- The cumulative tax base lowers net pay later in the year. Budget net-to-gross offers on an annual basis.
- The 2026 ceiling rise and smaller incentive raised employer cost for high earners.
- Foreign hires need a Ministry of Labour work permit (Law 6735) before starting. Criteria commonly require 5 Turkish employees per foreign employee.
- Kıdem is unfunded. Re-measure accruals every January and July.
- The monthly SGK and withholding return (MUHSGK) is due by the 26th. Late filing can cost the incentive.