From Gross to Net: What Is Deducted?
In Turkey four main deductions apply between gross and net salary:
- Employee social security (SGK) share: 14% of earnings subject to premium, capped at the monthly SGK ceiling.
- Unemployment insurance: 1%
- Income tax: 15%–40%, progressive brackets applied to the cumulative tax base; the portion corresponding to the minimum wage is exempt.
- Stamp duty: 0.759%, with a minimum-wage exemption.
Worked Example
For a gross salary of 60,000 TL: SGK 8,400 TL and unemployment 600 TL are deducted first; the minimum-wage exemption is applied to the remaining tax base, then the bracket rate. Early in the year the 15% bracket applies; as the cumulative base grows, higher brackets kick in and the net salary decreases over the year — this is why Turkish payslips vary by month.
Why the Cumulative Tax Base Matters
Income tax brackets are applied to the base accumulated since January 1st, not month by month. Mid-year hires may carry over their previous cumulative base, which directly changes the net. The 12-month table in the calculator shows bracket transitions automatically.
Employer Cost
Total employer cost = gross salary + employer SGK share (21.75% without incentive) + employer unemployment share (2%). If eligibility conditions are met, the general 2-point reduction lowers the SGK employer share to 19.75%; the manufacturing-sector 5-point reduction applicable through the end of 2026 lowers it to 16.75%. The calculator reports cost alongside net pay. Meal, transport, private insurance, and private pension exemptions are shown as reference information but are not included in the payroll result.
2026 Income Tax Brackets (Employment Income)
| Bracket | Base (TL) | Rate |
|---|---|---|
| 1 | 0 – 190,000 | 15% |
| 2 | 190,000 – 400,000 | 20% |
| 3 | 400,000 – 1,500,000 | 27% |
| 4 | 1,500,000 – 5,300,000 | 35% |
| 5 | Over 5,300,000 | 40% |
The portion corresponding to the minimum wage is exempt from these brackets; the calculator applies this automatically.
Employer Total Cost — Example
| Item | Gross 45,000 TL | Gross 90,000 TL |
|---|---|---|
| Gross salary | 45,000 | 90,000 |
| Employer SGK (21.75%, no incentive) | 9,787.50 | 19,575 |
| Employer unemployment (2%) | 900 | 1,800 |
| Total cost | 55,687.50 | 111,375 |
Payroll Checklist
- ✓ Cumulative tax base carried forward correctly?
- ✓ Minimum wage exemption applied?
- ✓ SGK ceiling checked?
- ✓ Meal/transport exemptions up to date?
- ✓ Net-to-gross target consistent month by month?