What is the minimum wage in Turkey in 2026?
For 2026, the gross monthly minimum wage in Turkey is TRY 33,030 and the net minimum wage is TRY 28,075.50. The gross amount is also the lower limit of earnings subject to social security contributions: an employee cannot be reported to SGK (Sosyal Güvenlik Kurumu, the Social Security Institution) with contribution earnings below this figure. The upper limit (ceiling) is TRY 297,270 per month. No contributions are calculated on earnings above the ceiling.
If your company operates in Turkey or is planning to hire there, the gap between the net wage an employee receives and the total amount the employer pays is one of the first things to understand. The difference consists of contributions withheld from the employee and contributions paid on top by the employer. Because earnings up to the minimum wage are exempt from income tax and stamp tax, a minimum wage employee pays no tax at all.
This guide walks through the calculation step by step, compares the scenarios with and without the Treasury discount, shows the annual cost and lists common mistakes. For the general gross to net logic, see our guide to calculating payroll in Turkey.
How is the employer cost of the minimum wage calculated?
Employer cost equals the gross wage plus the employer's share of contributions. There are three steps:
- Determine contribution earnings. For a minimum wage employee this equals the gross wage: TRY 33,030.
- Calculate the employer SGK share. The employer share is 21.75% in total: 12% for disability, old age and death insurance, 2.25% for short term insurance and 7.5% for general health insurance. Law No. 7566 raised the employer share for disability, old age and death insurance from 11% to 12%. Under Article 81/ı of Law No. 5510, the Treasury discount (Hazine indirimi) in 2026 is 5 points in manufacturing (employers pay 16.75%) and 2 points outside manufacturing (employers pay 19.75%); employers that do not qualify pay 21.75%.
- Add the employer unemployment insurance share. This is 2% and is not affected by the Treasury discount.
The total employer contribution burden is therefore 21.75% of gross pay outside manufacturing, 18.75% in manufacturing and 23.75% without the discount. Unless stated otherwise, the examples in this guide assume a non-manufacturing employer.
Worked example: employer cost with the Treasury discount
In 2026 the 5 point discount applies only in manufacturing; outside manufacturing the discount is 2 points. The table shows both cases:
| Item | Non-manufacturing (2 point discount) | Manufacturing (5 point discount) |
|---|---|---|
| Gross minimum wage | TRY 33,030.00 | TRY 33,030.00 |
| Employer SGK share | 19.75%: TRY 6,523.43 | 16.75%: TRY 5,532.53 |
| Employer unemployment insurance (2%) | TRY 660.60 | TRY 660.60 |
| Total employer cost | TRY 40,214.03 | TRY 39,223.13 |
Worked example: employer cost without the Treasury discount
| Item | Rate | Amount |
|---|---|---|
| Gross minimum wage | TRY 33,030.00 | |
| Employer SGK share | 21.75% | TRY 7,184.03 |
| Employer unemployment insurance | 2% | TRY 660.60 |
| Total employer cost | TRY 40,874.63 |
Compared with the no discount scenario, the monthly difference per employee is TRY 660.60 outside manufacturing and TRY 1,651.50 in manufacturing. If conditions such as filing on time and having no overdue contribution debt are not met, the discount is lost and cost rises by that amount.
What is deducted from a minimum wage payslip?
To understand total cost, it helps to see the employee side too. The following amounts are withheld from gross pay:
| Item | Rate | Amount |
|---|---|---|
| Gross minimum wage | TRY 33,030.00 | |
| Employee SGK share | 14% | TRY 4,624.20 |
| Employee unemployment insurance | 1% | TRY 330.30 |
| Income tax | Exempt | TRY 0.00 |
| Stamp tax | Exempt | TRY 0.00 |
| Net pay | TRY 28,075.50 |
The income tax base is gross pay minus the employee SGK and unemployment shares (33,030 - 4,624.20 - 330.30 = TRY 28,075.50). Since earnings up to the minimum wage are exempt from income tax and stamp tax, both taxes are zero for a minimum wage employee.
Putting both sides together, a non-manufacturing employer pays TRY 40,214.03 a month and the employee receives TRY 28,075.50. The TRY 12,138.53 in between (in manufacturing, total cost TRY 39,223.13 and a gap of TRY 11,147.63) is transferred to SGK as employee and employer contributions.
How does the minimum wage tax exemption work?
Since 2022, earnings equal to the minimum wage have been exempt from income tax and stamp tax in Turkey. The exemption applies to all employees, not only those on the minimum wage. For an employee earning more, the tax that would be due on the minimum wage is deducted from the employee's calculated tax.
One detail often surprises foreign payroll teams: Turkish income tax on wages is cumulative over the calendar year. As the minimum wage's cumulative tax base moves into a higher bracket during the year, the exemption amount increases too. The monthly income tax exemption amounts for 2026 are:
| Period | Monthly income tax exemption |
|---|---|
| January to June | TRY 4,211.33 |
| July | TRY 4,537.75 |
| August to December | TRY 5,615.10 |
The stamp tax exemption is TRY 250.70 per month all year (TRY 33,030 x 0.759%). If these values are not set up correctly in your payroll system, net pay for employees above the minimum wage will be wrong, especially in July and August. All current values are listed on our payroll parameters page.
What is the annual cost of a minimum wage employee?
Budgets need the annual figure as well as the monthly one. Assuming pay stays the same during the year and there are no extra payments:
| Scenario | Monthly cost | Annual cost (12 months) |
|---|---|---|
| Non-manufacturing, 2 point Treasury discount (21.75% total employer contributions) | TRY 40,214.03 | TRY 482,568.36 |
| Manufacturing, 5 point Treasury discount (18.75% total employer contributions) | TRY 39,223.13 | TRY 470,677.56 |
| Without discount (23.75% total employer contributions) | TRY 40,874.63 | TRY 490,495.56 |
| Difference: non-manufacturing vs no discount | TRY 660.60 | TRY 7,927.20 |
| Difference: manufacturing vs no discount | TRY 1,651.50 | TRY 19,818.00 |
This table covers wages and contributions only. Real cost per head also includes meals, transport, bonuses, overtime, occupational health and safety services and private health insurance where offered. Annual leave and severance pay provisions are part of the long term cost as well. Severance pay (kıdem tazminatı) accrues at 30 days of gross pay for each full year of service, capped at TRY 73,729.87 per year of service for 2026; for a minimum wage employee that is one month of gross pay per year.
What must an employer do to qualify for the Treasury discount?
The Treasury discount has the largest single effect on employer cost. In 2026 it is 5 points in manufacturing (pay 16.75%) and 2 points outside manufacturing (pay 19.75%); employers that do not qualify pay the full 21.75%. For a minimum wage employee the monthly saving is TRY 660.60 outside manufacturing and TRY 1,651.50 in manufacturing. The general conditions are filing monthly contribution and service documents on time, paying contributions on time, having no overdue contribution debt and not reporting insured persons who do not actually work. Details and exceptions can change, so check current conditions in the latest SGK announcement.
- File the combined withholding tax and social security return (MUHSGK, muhtasar ve prim hizmet beyannamesi) by the 26th of the following month.
- Pay contributions by the due date; late payment can cost you the discount.
- Check SGK records regularly for any unstructured contribution debt.
- Submit the employment start notification before the employee starts work and the termination notification within 10 days.
- Make sure the number of days reported to SGK matches your timesheet.
- Confirm with your financial advisor whether the discount can be combined with other incentives.
How do minimum wage support and other incentives affect cost?
In some years the government provides employers with a contribution support for minimum wage employees. The scope, amount and duration are set by a separate regulation each year, so check current conditions in the latest SGK announcement before assuming it applies in 2026. Add the support to your budget only after an official announcement.
Other incentives, such as those for hiring young people, women, people with disabilities or for regional investment, can also reduce the employer share. Each has its own conditions and its own rules on whether it can be combined with others. If you plan to use an incentive, check the conditions before hiring; retroactive corrections cost time and may lead to penalties.
What should employers check when the minimum wage changes?
A new minimum wage does not only affect minimum wage employees. It changes the SGK floor and ceiling, the tax exemptions and many internal pay policies at the same time. We cover the expected HR impact of the next increase in our 2027 minimum wage HR impact guide. When the change arrives, check the following:
- Raise any gross pay below the new minimum wage.
- Update benefits and bonuses linked to the minimum wage, such as payments defined as a multiple of it.
- Update the SGK contribution floor and ceiling in your payroll system.
- Set the income tax and stamp tax exemption amounts based on the new minimum wage.
- Decide whether to keep the pay gap for employees just above the minimum wage.
- Recalculate the annual headcount budget with the new employer cost.
What are common mistakes when calculating employer cost?
Budgeting on net pay
The total employer cost is roughly 43% higher (for a non-manufacturing employer at the minimum wage) than the net pay the employee receives. Budgeting on net figures significantly underestimates cost. Always plan using gross pay plus employer contributions.
Treating the Treasury discount as guaranteed
The discount depends on conditions. A single late filing or overdue debt can remove it for that period. Keeping the no discount scenario visible in your budget prevents surprises.
Overlooking partial months and missing days
For employees who join or leave mid month or take unpaid leave, contribution earnings are calculated on the number of days. Both employee and employer contributions change proportionally. Feeding payroll and timesheets from the same source reduces errors.
Leaving overtime out of the cost
Work beyond 45 hours a week is paid at a 50% premium, and these payments are subject to contributions and tax. In busy periods overtime can raise the cost of a minimum wage employee noticeably. See our overtime rules guide for details.
Employer cost checklist
- Is the gross minimum wage set to TRY 33,030?
- Are the SGK floor (TRY 33,030) and ceiling (TRY 297,270) current?
- Is the right employer SGK rate (19.75% outside manufacturing, 16.75% in manufacturing, 21.75% without the discount) selected for your company?
- Are unemployment insurance rates (employee 1%, employer 2%) correct?
- Are the monthly income tax exemption amounts set by period?
- Is the stamp tax exemption (TRY 250.70) applied?
- Are benefits, overtime and bonuses included in the cost estimate?
- Have incentive conditions been checked against the latest SGK announcement?
For quick calculations at other gross pay levels, use the employer cost calculator and the salary calculator.