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How to Calculate Employer Cost in Türkiye

Region: TürkiyeHesaplayıcı2 min read

Short answer

Employer cost in Türkiye is the gross salary plus the employer social security premium and the 2% employer unemployment premium. In 2026 the employer social security share is 21.75%; the general Treasury discount brings it to 19.75%, and 16.75% in manufacturing. For example, 50,000 TRY gross costs the employer 60,875 TRY a month, or 730,500 TRY a year.

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Formula

employer cost = gross + min(gross; ceiling) × employer SGK rate + min(gross; ceiling) × 2%

  • gross: the monthly gross salary
  • ceiling: the social security earnings ceiling, 297,270 TRY a month in 2026
  • employer SGK rate: 12% long-term + 2.25% short-term + 7.5% health − Treasury discount
  • Treasury discount: 2 percentage points in general and 5 in manufacturing in 2026 (Law 5510 art. 81; Law 7566 art. 23)
  • 2%: the employer unemployment insurance premium

Step-by-step example

January 2026, a gross salary of 50,000 TRY, the general Treasury discount:

  1. Premium base: min(50,000; 297,270) = 50,000 TRY.
  2. Employer SGK: 50,000 × 19.75% = 9,875 TRY.
  3. Employer unemployment: 50,000 × 2% = 1,000 TRY.
  4. Employer cost: 50,000 + 9,875 + 1,000 = 60,875 TRY.

If the gross stays the same all year, the yearly cost is 730,500 TRY. In the same month the employee takes home 40,207.53 TRY net.

Employer cost by discount

2026, monthly cost:

Gross salary General (2 points) Manufacturing (5 points) No discount
33,030 TRY (minimum wage) 40,214.03 TRY 39,223.13 TRY 40,874.63 TRY
50,000 TRY 60,875 TRY 59,375 TRY 61,875 TRY

The minimum wage row matches the 2026 ÇSGB table. At 50,000 TRY gross the employer social security share is 9,875 TRY with the general discount, 8,375 TRY in manufacturing and 10,875 TRY with no discount.

What changes the cost

  • The ceiling: premiums are taken only up to 297,270 TRY. A gross salary of 350,000 TRY costs 414,656.23 TRY a month.
  • A net salary agreement: a net pay of 40,000 TRY in January 2026 needs 49,709.72 TRY gross, which costs the employer 60,521.58 TRY.
  • The discount’s conditions: only an employer that meets them, such as having no overdue premium debt, can use the Treasury discount.
  • What is left out: meal cards, private health insurance, private pension contributions, severance provisions and other incentives are not in this formula.

Worked example: 2026, a monthly gross salary of 50,000 TRY, January

Net pay

40,207.53 TRY

Employee social security
7,000 TRY
Employee unemployment insurance
500 TRY
Income tax base
42,500 TRY
Cumulative tax base
42,500 TRY
Income tax before the exemption
6,375 TRY
Minimum wage exemption
4,211.33 TRY
Income tax due
2,163.67 TRY
Stamp duty
128.8 TRY
Employer cost
60,875 TRY
Annual net pay
466,135.63 TRY
Annual employer cost
730,500 TRY
Step by step
  1. Employee social security

    employee SGK = min(gross; ceiling) × 14%

    employee SGK = min(50,000; 297,270) × 14% = 7,000

  2. Employee unemployment insurance

    unemployment insurance = min(gross; ceiling) × 1%

    unemployment insurance = min(50,000; 297,270) × 1% = 500

  3. Income tax base

    tax base = gross − employee SGK − unemployment insurance

    tax base = 50,000 − 7,000 − 500 = 42,500

  4. Cumulative tax base

    cumulative base = earlier months + tax base

    cumulative base = 0 + 42,500 = 42,500

  5. Income tax before the exemption

    income tax before the exemption = tax(cumulative base) − tax(earlier months)

    income tax before the exemption = tax(42,500) − tax(0) = 6,375

  6. Minimum wage exemption

    minimum wage exemption = tax(minimum wage)

    minimum wage exemption = tax(33,030) = 4,211.33

  7. Income tax due

    income tax = income tax before the exemption − minimum wage exemption

    income tax = 6,375 − 4,211.33 = 2,163.67

  8. Stamp duty

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

    stamp duty = (50,000 − 33,030) × 7.59 per mille = 128.8

  9. Net pay

    net = gross − employee SGK − unemployment insurance − income tax − stamp duty

    net = 50,000 − 7,000 − 500 − 2,163.67 − 128.8 = 40,207.53

  10. Employer cost

    employer cost = gross + employer SGK (19.75%) + employer unemployment (2%)

    employer cost = 50,000 + 9,875 + 1,000 = 60,875

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