Payroll & Workforce Management in Turkey

What running payroll in Turkey costs and requires

Turkey's standard corporate tax rate is 25% (30% for financial institutions), applied after deductions and exemptions — but since 1 January 2025 a parallel domestic minimum tax regime requires every corporate taxpayer to also compute liability at 10% of taxable income before most exemptions and deductions, paying whichever of the two results is larger. Unlike the OECD Pillar Two minimum tax it echoes, Turkey's version is not restricted to large multinational groups above a consolidated-revenue threshold: it applies broadly, which caps the practical effect of investment incentives, R&D deductions and other reliefs that would otherwise reduce a company's effective rate below 10%.

Operating in Turkey means tracking a domestic minimum tax floor that applies regardless of group size alongside an inflation-accounting regime whose statutory trigger has not been repealed, only suspended — a combination that keeps both the tax base and the accounting framework in flux year to year.

What sits on top of gross salary

~21.75% of gross salary (SGK: 12% old-age/disability/survivors + 7.5% general health + 2.25% short-term insurance); Treasury incentive reduces the manufacturing-sector rate by up to 5 points through end-2026 — this is a direct cost the employer budgets on top of gross pay for every hire, not a deduction from it.

• Domestic minimum tax floor — from FY2025 — every corporate taxpayer computes liability under both the standard 25% regime and a parallel 10% pre-exemption calculation, paying whichever is higher; unlike OECD Pillar Two, this is not limited to large groups
• Inflation-accounting trigger vs. suspension — — the statutory test (PPI up >10% in-year and >100% over three years) remains law, but a December 2025 act suspends the adjustment requirement for FY2025–2027 regardless of whether the test is met, with presidential power to extend it further
• Dividend withholding tax increase — — raised from 10% to 15% by Presidential Decree effective December 2024, applying to distributions to both resident and non-resident shareholders, subject to treaty relief
• Independent audit thresholds raised for 2026 — — total assets TRY 500M (up from TRY 300M), net sales revenue TRY 1B (up from TRY 600M), employee threshold unchanged at 150; 2 of 3 criteria over the last two fiscal periods trigger mandatory audit

The statutory floor for Turkey

TRY 33,030/month gross (2026); TRY 28,075.50 net (minimum wage is exempt from income and stamp tax). Underpaying the statutory floor exposes the employer to fines and back-pay claims, and should be checked against any role before an offer is made — thresholds are typically revised annually.

Standard cycle and documentation

Payroll in Turkey runs on a monthly cycle, in arrears. Payslips must itemize gross pay, statutory deductions, and net pay — incomplete or incorrect payslips are exactly what a labour or social security audit checks first, so the format is a compliance requirement, not a formality.

Employer obligations and deadlines

Corporate income tax return and payment due by the 30th day of the 4th month after fiscal year-end (30 April for calendar-year filers); quarterly advance tax due the 17th of the second month following each quarter.

Employer registration runs through the Trade Registry (Ticaret Sicili), filed via the MERSIS central registration system, typically taking 1–2 weeks for a Limited Şirket with complete documentation.

Frequently asked questions