Guide · Payroll in Turkey

Turkey minimum wage 2027: what it means for HR

The Turkey minimum wage for 2027 will reset employer costs, payroll parameters and pay structures from January 1. The figure has not been announced yet. This guide explains how the system works, where the 2026 numbers stand, and what HR and finance teams with staff in Turkey should prepare before year end.

Talk to an expert See payroll features

How the minimum wage is set in Turkey

Turkey has a single national minimum wage. It applies to all sectors and regions, with no separate rates by industry or city. A tripartite Minimum Wage Determination Commission, made up of government, employer and worker representatives, sets the rate. The law requires it to be set at least once every two years; in recent years it has been set every year, with additional mid-year increases in 2022 and 2023. The new rate normally takes effect on January 1.

There is no automatic indexation formula. The commission weighs actual inflation, the inflation target and the positions of both sides. For multinational employers this means the increase cannot be modeled precisely in advance, even though budgets for the following year are usually locked in the autumn.

The minimum wage matters beyond the lowest-paid employees. Several statutory payroll parameters are tied to it, including the social security contribution floor and ceiling and the income tax and stamp duty exemption that applies to every employee's salary.

TRY 33,030Gross monthly minimum wage

TRY 28,075.50Net monthly take-home pay

TRY 40,214Monthly employer cost (non-manufacturing, 2-point discount)

27%Increase for 2026

From gross wage to employer cost

The gap between gross pay and total employer cost comes from social security (SGK) and unemployment insurance contributions. Income tax and stamp duty are fully exempt on minimum wage earnings, so the employee's net pay equals gross pay minus their own contributions.

Item (2026, monthly)	Rate	Amount
Gross minimum wage		TRY 33,030.00
Employee social security contribution	14%	TRY 4,624.20
Employee unemployment insurance	1%	TRY 330.30
Income tax and stamp duty	Exempt	TRY 0
Net pay to employee		TRY 28,075.50
Employer cost, no contribution discount		TRY 40,874.63
Employer cost, 2-point discount (most sectors)		TRY 40,214.03
Employer cost, 5-point discount (manufacturing)		TRY 39,223.13

In 2026 the employer pays 21.75% social security and 2% unemployment insurance on top of gross pay. Employers that meet the conditions receive a contribution discount: 5 points in manufacturing and 2 points in other sectors. The 5-point manufacturing discount runs until December 31, 2026, and the President has the authority to extend it to December 31, 2027. Check official guidance for 2027 before you finalize budgets.

2027 scenarios for budget planning

As of October 10, 2026, the 2027 rate has not been announced and no commission meeting date has been published. Last year the commission started work on December 12, 2025 and announced its decision on December 23, 2025. A similar December timeline is expected this year.

The table below is not a forecast. It applies three illustrative increases to the 2026 gross wage. Net pay assumes the full wage stays exempt from income tax and stamp duty, and employer cost assumes 2026 contribution rates and the 2-point discount remain unchanged.

Scenario	Gross monthly	Net monthly	Employer cost per month	Extra annual cost per 10 employees (vs. 2026)
20% increase	TRY 39,636	TRY 33,690.60	TRY 48,256.83	TRY 965,136
25% increase	TRY 41,287.50	TRY 35,094.37	TRY 50,267.53	TRY 1,206,420
30% increase	TRY 42,939	TRY 36,498.15	TRY 52,278.23	TRY 1,447,704

If your group reports in another currency, model these lira scenarios first and apply your own exchange-rate assumption separately. Mixing the two makes it harder to see which part of a variance comes from the wage decision.

Headcount budget

Employer contributions rise in line with gross pay. Budgets approved in October or November may need a revision once the December decision is out.

Payroll for all employees

The tax exemption applies to every salary up to the minimum wage amount, so a new rate changes net pay across the whole workforce, not only at the bottom.

Pay compression

When the floor rises and higher grades stay flat, the gap between new hires and experienced staff narrows. Decide in advance how you will treat grades just above the minimum.

Incentives

Contribution discounts reduce cost per employee. The 2-point discount has no set end date, but the 5-point manufacturing rate currently runs only until December 31, 2026, so keep discounts as a separate line in your model.

Group reporting

Regional and global finance teams need the new Turkey figures early in January for cost reporting and intercompany charges.

Employee communication

Questions about new net pay and the timing of any wider salary review peak in January. A short, early announcement reduces uncertainty.

Year-end checklist for teams with staff in Turkey

List employees paid at or close to the minimum wage.
Build the 2027 headcount budget on at least three increase scenarios.
Agree a policy for pay grades just above the minimum before the decision is announced.
Confirm which social security discounts you use and whether they continue in 2027.
Update the contribution floor, ceiling and tax exemption amounts in payroll as soon as the rate is published.
Tell employees their new net pay before the January payroll run.

Payroll

Compliant payroll calculation and electronic payslips. Payroll package

Compensation review

Run raise cycles with approval workflows and track the total budget for new salaries and the average increase. Compensation Review package

Reporting

Report salary and personnel data by department, position and date, and export it to Excel. Reporting package

Has the Turkey minimum wage for 2027 been announced?

No. As of October 10, 2026, the 2027 rate has not been announced. Based on previous years, a decision is expected in December, with the new rate taking effect on January 1, 2027. Follow the Ministry of Labour and Social Security for the official announcement.

What does a minimum wage employee cost an employer in Turkey in 2026?

For a gross wage of TRY 33,030, the monthly employer cost is TRY 40,214.03 in most sectors with the 2-point contribution discount, TRY 39,223.13 in manufacturing with the 5-point discount, and TRY 40,874.63 without a discount.

Does Turkey have different minimum wages by region or sector?

No. Turkey applies one national minimum wage to all sectors and regions.

Does the increase affect employees paid above the minimum wage?

There is no legal obligation to raise higher salaries. However, the income tax and stamp duty exemption is calculated on the minimum wage amount and applies to all employees, so net pay changes across the workforce. Pay compression is also a common side effect.

Sources

This page is for general information. The scenario tables are illustrative, not forecasts. Rely on official sources for current legislation.

Get your 2027 payroll ready

Talk to our team about applying the new minimum wage parameters to your payroll in Turkey.

Request a demo