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Turkey has ~20.5% employer SGK, mandatory severance (kıdem tazminatı, 30 days/year), stamp duty, and a high-inflation environment requiring regular salary reviews. Monthly muhtasar declaration due by the 26th. Rippling handles GİB, SGK, and İŞKUR compliance.
Turkey is a large upper-middle-income economy bridging Europe and Asia, with major strengths in manufacturing, textiles, tourism, agriculture, financial services, and a rapidly growing technology sector in Istanbul, Ankara, and Izmir. Turkey has a large, young, educated workforce with strong English proficiency in the tech sector. TRY depreciation has made Turkish tech talent highly cost-competitive. Turkey uses the Turkish lira (TRY). Istanbul is the dominant business hub.
| Contribution | Rate | Notes |
|---|---|---|
| SGK (employer) | 20.5% | On gross salary up to SGK ceiling; 5% discount available for some employers |
| Unemployment insurance (employer) | 2% | On gross salary |
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| Contribution | Rate | Notes |
|---|---|---|
| SGK (employee) | 14% | On gross salary up to SGK ceiling |
| Unemployment insurance (employee) | 1% | On gross salary |
| Income tax (PAYE) | 15–40% | Progressive; employer withholds monthly via stopaj |
| Stamp duty | 0.759% | On gross salary; deducted from employee |
| Annual Income (TRY) | Rate |
|---|---|
| Up to 110,000 | 15% |
| 110,001–230,000 | 20% |
| 230,001–580,000 | 27% |
| 580,001–1,900,000 | 35% |
| Above 1,900,000 | 40% |
Plus 0.759% stamp duty on gross salary. Monthly stopaj withholding by employer; remitted with muhtasar declaration by 26th.
Kıdem tazminatı (severance): 30 days' gross per year of service (ceiling applies) — payable on dismissal without just cause, eligible resignation, or retirement. İhbar tazminatı (notice pay): 2–8 weeks depending on tenure. Unfair dismissal (5+ employees, 6+ months tenure): reinstatement right or 4–8 months' compensation.
Turkey has very high inflation (peaked above 80% in 2022; remained elevated through 2024). The minimum wage is adjusted twice per year (January and July) to partially compensate. Salary review cycles in Turkey are typically 6–12 months; employees expect inflation-linked increases. TRY depreciation has made Turkish talent cost-competitive in USD/EUR terms — senior software engineers often earn USD 1,500–4,000/month equivalent. Budget for regular TRY salary increases to retain staff.
Turkey requires mandatory severance pay (kıdem tazminatı) for employees with 1+ year of service who are dismissed without just cause, who resign for specific valid reasons, or who retire. The rate is 30 days' gross salary per year of service. There is a ceiling on the daily base: the severance ceiling for 2024 is TRY 35,058.58 per year of service (updated twice annually). This is a significant accruing liability — budget from day one.
Turkey's minimum wage (asgari ücret) is TRY 20,002.50/month gross (January 2025). Turkey reviews minimum wages at least annually (twice per year during high-inflation periods). The minimum wage is applied nationally; there is no regional variation.
The muhtasar ve prim hizmet beyannamesi is Turkey's combined monthly payroll declaration, due by the 26th of the following month. It combines: income tax withholding (stopaj), SGK social insurance contributions, and unemployment insurance for all employees. This single declaration replaced separate submissions. Late filing attracts penalties.
