Easily manage employment in Turkey (Türkiye)

Payroll services in Türkiye

Türkiye has a dynamic economy with key industries in manufacturing, tourism, finance, and technology. Employers in Türkiye must comply with national labor laws and tax regulations to ensure proper payroll management, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Türkiye

Employers in Türkiye must adhere to national payroll regulations concerning wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: As of 2024, Türkiye’s gross minimum wage is TRY 20,002.50 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Türkiye is 45 hours, typically spread over five or six days.
• Overtime: Employees are entitled to overtime pay at 150% of the regular wage for extra hours and 200% for work on public holidays or rest days.

Taxation and social security contributions

• Personal income tax: Türkiye has a progressive income tax system with rates ranging from 15% to 40%, depending on income levels.
• Employer contributions:
• Social Security Institution (SGK): 20.5% of the gross salary (including disability, retirement, health insurance, and unemployment contributions).
• Unemployment Insurance Fund: 2% of the gross salary.
• Employee contributions:
• Social Security Institution (SGK): 14% of the gross salary.
• Unemployment Insurance Fund: 1% of the gross salary.
• Corporate tax: The corporate income tax rate in Türkiye is 25% for 2024.
• Tax reporting: Employers must file payroll taxes and social security contributions with the Turkish Revenue Administration and the Social Security Institution (SGK) regularly.

Payroll compliance

• Employment contracts must be provided in writing and specify key details such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security, income tax, and unemployment insurance.
• Employers must stay updated on changes to Türkiye’s labor laws and tax regulations to avoid penalties.

Run payroll in Türkiye with Remote

Managing payroll in Türkiye requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.