September 2026

Managing payroll in Turkey requires much more than calculating an employee’s monthly net salary. Employers must coordinate salary calculations, income tax, social security contributions, unemployment insurance, benefits, bonuses, leave, new hires, terminations and statutory declarations. For international companies, this raises an important question: Should payroll in Turkey be managed internally or outsourced to a local […]

When an employee leaves a company in Turkey, the employer must prepare a final payroll covering all outstanding employment-related payments. The calculation can involve much more than simply paying the employee’s salary up to their last working day. Depending on the circumstances, final payroll in Turkey may include outstanding salary, unused annual leave, bonuses, commissions,

Annual leave is an important component of employment and payroll management in Turkey. Employers must not only determine how many days of annual leave an employee is entitled to, but also correctly manage leave records, salary payments during annual leave and the payment of unused leave when employment ends. For foreign companies employing personnel in

International companies operating in Turkey frequently want to determine employee salaries in euros, US dollars, British pounds or another foreign currency. This is particularly common when an employee is part of an international group, when compensation is benchmarked globally or when a foreign employee is relocated to Turkey. However, salary payments in foreign currency in

Hiring a foreign employee in Turkey requires employers to consider more than the standard Turkish payroll process. Foreign employees may be subject to Turkish income tax, social security contributions and unemployment insurance in much the same way as Turkish employees. However, additional issues such as work permits, minimum salary requirements, tax residency and international social

Bonuses are a common component of employee compensation packages in Turkey, particularly for executives, sales employees and employees whose remuneration is linked to performance. However, employers should not treat a bonus as a payment separate from payroll. Under Turkish tax legislation, bonuses paid to employees are generally considered employment income. They must therefore be incorporated

Employee benefits are an important part of compensation packages in Turkey. In addition to base salary, employers frequently provide benefits such as meal allowances, transportation support, private health insurance, bonuses, family allowances and other supplementary payments. For foreign companies employing staff in Turkey, however, it is important to understand that employee benefits can have different

Managing payroll in Turkey requires more than calculating salaries and issuing payslips. Employers must also comply with a series of monthly reporting, tax and social security deadlines. For foreign companies employing staff in Turkey, understanding the payroll calendar in Turkey is essential to ensure salaries are processed correctly, declarations are submitted on time and statutory

Understanding the difference between gross and net salary is essential for any company employing workers in Turkey. A salary agreed with an employee as a gross amount is not the amount that will ultimately be transferred to the employee’s bank account. Several statutory deductions must be applied through payroll, including social security contributions, unemployment insurance,

Turkey introduced a significant new tax incentive in 2026 for individuals who become tax residents in the country. Under Law No. 7582, qualifying individuals who become resident in Turkey may benefit from a 20-year income tax exemption on income and earnings derived outside Turkey. The new regime can be particularly attractive for foreign investors, international