How the Minimum Wage Exemption Works in Türkiye

Formula

income tax exemption = tax(cumulative minimum wage base) − tax(minimum wage base of earlier months)

income tax due = income tax before the exemption − income tax exemption

stamp duty = (gross − gross minimum wage) × 7.59 per mille

• minimum wage base: the gross minimum wage less the 14% employee social security premium and the 1% unemployment premium, added up from January to the month
• tax(x): the tax the wage tariff puts on a yearly base of x
• income tax before the exemption: the month’s tax on the employee’s own cumulative base
• gross minimum wage: 33,030 TRY a month from 1 January to 31 December 2026

The income tax due never goes below zero. The exemption rests on Income Tax Law no. 193 art. 23/18 and item IV-34 of table 2 of Stamp Duty Law no. 488.

Step-by-step example

January 2026:

1. Minimum wage base: 33,030 − 4,624.20 − 330.30 = 28,075.50 TRY.
2. Income tax exemption: 28,075.50 TRY is in the first bracket, and its tax is 4,211.33 TRY.
3. A minimum wage earner’s income tax before the exemption is also 4,211.33 TRY, so the income tax due is 0 TRY, the stamp duty 0 TRY and the net pay 28,075.50 TRY.
4. An employee on 50,000 TRY gross has 6,375 TRY of income tax before the exemption. The income tax due is 6,375 − 4,211.33 = 2,163.67 TRY.
5. The same employee’s stamp duty is (50,000 − 33,030) × 7.59 per mille = 128.80 TRY. The stamp duty exemption is worth 33,030 × 7.59 per mille = 250.70 TRY.

Why the exemption grows during the year

The exemption uses the minimum wage’s own cumulative base. That base passes the first bracket limit of 190,000 TRY in July, so part of July’s exemption and all of it from August is worked out at 20%:

That is why the net pay of an employee on 50,000 TRY gross goes from 38,082.53 TRY in June to 38,408.95 TRY in July and 39,486.30 TRY in August.

Common mistakes

• Working out the exemption at the employee’s own bracket. It follows the minimum wage’s own base, so it is the same amount for a high earner.
• Taking the minimum wage off the gross for income tax. Income tax takes off a tax amount, not income; stamp duty, on the other hand, really is charged only on the part of the gross above the minimum wage.
• Applying it only to minimum wage earners. Since 1 January 2022 it applies to every wage earner, including those above the minimum wage.