Statutory Deductions on Payroll for 2026

The statutory deductions applicable in a standard Turkish payroll are social security contributions, income tax, and stamp tax. Also, the salaries generated from liaison offices in Türkiye are exempt from income tax per Article 34/14 of Income Tax Law, and these are only subject to social security.

Also, the income tax exemption as much as the income tax deduction amount calculated over the minimum wage for all wages introduced in 2022 will continue in 2026 as well.

Social Security Contributions

Social security contributionsis calculated over wages monthly and paid jointly by the employee and the employer. The contribution rates are as follows:

*According to Article 81, paragraph (ı) of Law No. 5510, employers who meet the specified conditions in the paragraph are granted a 2-point reduction in the employer's share of the SGK premium, and calculations have been made accordingly. For employers who do not meet the necessary conditions, the employer's share of the SSI premium is 21.75%. The discount rate for the manufacturing sector will be applied at 5 percentage points through the end of 2026.

SSI Base and Ceiling

2026 Liability for Income Tax

Per the Income Tax Law, Article 1, the tax year is the calendar year in Türkiye, and there is a cumulative income tax system that follows the calendar year. The applicable tax rate is determined based on the year-to-date cumulative income tax base of the employee. Therefore, the tax rate of the employees will increase throughout the year as their cumulative income tax base increases.

Below are the income tax brackets that are applicable for the salary income on 2026 tax year (Income Tax Communique No. 332):

Income Tax Brackets Applicable to Wage Earners for 2026

Income Tax Brackets Applicable to Income Other Than Wages for 2026

2026 Income Tax Exemption

The income tax exemption as much as the income tax deduction amount calculated over the minimum wage for all wages introduced in 2022 will continue in 2026 as well.

Liability for Stamp Tax

The stamp tax is applied on employment income through the payroll. The applied rate is 0,759 percent as of January 1, 2015.

The stamp tax base equals the total gross earning on the payroll, and the stamp tax is calculated over that total gross earning.

The stamp duty exemption for all wages brought in 2022 up to the minimum wage level will continue in 2026 as well.

2026 Minimum Wage Tax Exemptions

The increase in the minimum wage as of January 1, 2026, has also affected the exemption amounts for January and subsequent months.

Minimum Wage Sample Calculation as of January 1st, 2026

^*Due to the exemption of the portion of wage income corresponding to the minimum wage from Income Tax and Stamp Tax, no Income Tax or Stamp Tax has been calculated.

Minimum Wage Employer Cost Calculation Sample as of January 1, 2026

^*The Minimum Wage Support amount of TRY 1,270 applicable for 2026 has not been taken into account in the calculation.

Sample Calculation - 2 as of January 1st, 2026

2026 Payroll Calculation Method Sample

You can find below a sample calculation process from gross salary to net salary;

• Total gross earning: gross base salary + all benefits and allowances
• Gross base salary: monthly base salary / 30 * working days of the employee
• SSI base: total gross payment – exemptions (i.e., in-kind meal allowance)
• SSI employee contribution: Social security base * 0.14
• SSI employee unemployment contribution: social security base * 0.01
• SSI employer contribution: social security base * 0.2175
• SSI employer unemployment contribution: social security base * 0.02
• Cumulative income tax base: Current income tax base + cumulative income tax base from the previous months
• Income tax base: total gross payment – SSI employee contribution – SSI employee unemployment contribution
• Income tax: income tax base * tax rate
• Income tax exemption: The tax amount calculated over the applicable minimum wage
• Income tax payable: Income tax – income tax exemption
• Stamp tax base (before exemption): total gross payment
• Stamp tax base exemption: Monthly gross minimum wage amount
• Stamp tax base (after exemption): Stamp tax base – stamp taxe base exemption
• Stamp tax: stamp tax base * 0.00759
• Total employee deduction: SSI total employee contribution + income tax + stamp tax
• Net payment: total gross payment - total employee deduction

The tax rate of the employees will increase throughout the year as their cumulative income tax base increases. As the cumulative income base of the employee change, the tax bracket of the employee changes as well. The income tax bracket for January can be 15%, and in February, the tax bracket would be increased and can be 20% due to an extra bonus payment.

You can reach the official announcement of the minimum wage amount applicable as of January 1st, 2025 via the link (In Turkish).

You can reach Income Tax Communique No. 332 via the link (In Turkish).

Should you have any queries or need further details, please contact your customer representative.