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 payments are made before the applicable deadlines.
This guide explains the main monthly payroll steps and deadlines that employers should know when managing employees in Turkey.
How Does the Monthly Payroll Cycle Work in Turkey?
Payroll in Turkey generally follows a monthly cycle.
During each payroll period, employers must collect employee information, calculate gross and net salaries, process statutory deductions, prepare payroll documentation and complete the required tax and social security declarations.
A typical payroll cycle includes:
- collection of payroll variables;
- calculation of salaries;
- preparation of payslips;
- payment of net salaries;
- declaration of payroll taxes;
- declaration of employee social security information;
- payment of payroll-related taxes; and
- payment of SGK social security contributions.
Although these activities relate to the same payroll period, they do not necessarily occur on the same date.
Step 1 – Collect Monthly Payroll Variables
The payroll process should begin before the end of the relevant month.
Employers should collect all information that may affect the employee’s salary calculation.
Typical payroll variables include:
- new hires;
- employee terminations;
- unpaid leave;
- sick leave;
- annual leave;
- overtime;
- bonuses;
- commissions;
- salary increases;
- allowances;
- expense-related payroll items; and
- other changes affecting employee remuneration.
Foreign employers working with a payroll provider should establish an internal payroll cut-off date.
This allows sufficient time to review the information, calculate payroll and correct any discrepancies before salaries are paid.
Step 2 – Calculate Monthly Payroll
Once all payroll variables have been collected, the monthly payroll calculation can be prepared.
The calculation generally includes:
Gross Salary
minus
Employee SGK Contribution
minus
Employee Unemployment Insurance Contribution
minus
Income Tax
minus
Stamp Tax
equals
Net Salary
Other taxable or exempt payments may also need to be incorporated depending on the employee’s compensation package.
Turkey uses a cumulative income tax system, meaning the employee’s tax position can change throughout the year.
Consequently, the same gross salary does not necessarily produce the same net salary every month.
Step 3 – Prepare and Review Payslips
Once payroll calculations have been completed, employers should review the results before salary payments are processed.
Particular attention should be given to:
- gross salary;
- taxable benefits;
- bonuses and commissions;
- SGK contribution base;
- income tax base;
- cumulative income tax;
- statutory exemptions;
- deductions; and
- final net salary.
Any exceptional payment should be reviewed before payroll is finalised.
This is especially important for foreign employers because last-minute changes can require payroll recalculations.
Step 4 – Pay Employee Salaries
Employee salaries must be paid in accordance with the employment contract and applicable Turkish employment legislation.
Companies should establish a consistent monthly salary payment date and ensure sufficient funds are available before payroll is processed.
For international groups, the payment process may require coordination between:
- the foreign headquarters;
- the Turkish entity or local employer;
- the payroll provider;
- the accounting team; and
- the bank processing salary payments.
Where payroll is managed through an Employer of Record or local employment provider, the international client should provide payroll instructions and funding sufficiently in advance.
Step 5 – Submit the Muhtasar ve Prim Hizmet Beyannamesi
One of the most important monthly payroll obligations in Turkey is the Muhtasar ve Prim Hizmet Beyannamesi, commonly referred to as the MPHB.
This combined declaration brings together important payroll information relating to:
- employee income tax withholding;
- social security information;
- employee earnings subject to SGK;
- number of working days; and
- other payroll-related information.
For employers with employees, the MPHB is generally submitted monthly.
The standard deadline is generally the 26th day of the month following the relevant payroll period.
For example, payroll information relating to July would normally be declared during August, subject to the applicable statutory calendar.
Employers should always verify the official calendar because deadlines can be affected by public holidays or exceptional extensions announced by the authorities.
Step 6 – Pay Payroll Withholding Taxes
Income tax withheld from employees’ salaries must be declared and paid to the Turkish tax authorities according to the applicable monthly tax calendar.
These amounts are withheld through payroll by the employer.
The employer therefore acts as the withholding agent: the tax is deducted from the employee’s remuneration and subsequently declared and paid to the authorities.
The applicable payment deadline should be checked against the official tax calendar for the relevant month.
Employers should not confuse the employee’s salary payment date with the deadline for paying payroll taxes.
These are separate obligations.
Step 7 – Pay SGK Social Security Contributions
Employers must also pay social security contributions to the Social Security Institution (Sosyal Güvenlik Kurumu – SGK).
The payment includes both:
- the employee contribution withheld through payroll; and
- the employer’s own social security contribution.
For employees remunerated for work performed between the first and last day of the month, SGK contributions are generally payable by the end of the following month.
For example, SGK contributions relating to July payroll would normally be payable by the end of August.
Different rules may apply to specific payroll periods or categories of employers.
If the statutory deadline falls on an official holiday, the applicable payment date may move according to Turkish rules.
A Simplified Monthly Payroll Calendar
For a standard monthly payroll, foreign employers can think of the process as follows:
During the Payroll Month
Collect all employee and payroll variables:
- attendance;
- leave;
- overtime;
- bonuses;
- commissions;
- salary changes;
- new hires; and
- terminations.
Before Salary Payment
Prepare and review:
- gross-to-net calculation;
- payslips;
- employer costs;
- payroll reports; and
- salary payment instructions.
Salary Payment Date
Transfer the employee’s net salary according to the contractual and company payroll schedule.
By the 26th of the Following Month
Submit the applicable Muhtasar ve Prim Hizmet Beyannamesi and comply with the relevant payroll withholding tax obligations.
By the End of the Following Month
Pay the applicable SGK social security contributions for standard employees working on a calendar-month payroll basis.
This structure provides foreign employers with a useful framework for understanding the Turkish payroll cycle.
Example: July Payroll
Consider an employee working throughout July.
During July, the employer collects information relating to the employee’s work, leave, expenses, bonuses and other payroll variables.
The payroll calculation is then prepared and the employee’s net salary is paid according to the company’s contractual salary payment schedule.
During August, the employer must complete the statutory declarations and payments relating to the July payroll.
The MPHB and relevant payroll withholding obligations would generally fall due by 26 August, while standard SGK contributions would generally be payable by the end of August, subject to the official calendar and any applicable extensions.
This means that payroll compliance continues even after the employee has received their salary.
New Hires and Payroll Deadlines
New employees create additional reporting obligations.
An employee must generally be registered with SGK before starting employment, subject to specific exceptions provided by Turkish legislation.
Foreign employers should therefore communicate new hires to their payroll provider before the employee’s intended starting date.
Providing new-hire information after the employee has already started working can create compliance risks.
The payroll team should receive at least:
- employee identification information;
- employment start date;
- gross or net salary;
- employment contract;
- applicable benefits;
- working schedule; and
- other relevant employment information.
For foreign employees, work permit and immigration requirements must also be considered.
Employee Terminations
Terminations also require specific payroll processing.
The employer must calculate the employee’s final payroll, which may include:
- outstanding salary;
- unused annual leave;
- notice compensation where applicable;
- severance pay where applicable;
- bonuses or commissions;
- expense reimbursements; and
- other outstanding entitlements.
The employee’s departure must also be reported to SGK within the applicable statutory deadline.
Foreign employers should therefore notify their payroll provider as early as possible when an employee is expected to leave.
Why Internal Payroll Cut-Off Dates Matter
The statutory deadline is not the same as the employer’s internal payroll deadline.
Waiting until the statutory filing date to prepare payroll creates unnecessary risk.
Companies should establish an earlier payroll cut-off date for communicating monthly changes.
For example, an international employer may require managers to provide all salary changes, bonuses, commissions and other payroll variables several business days before payroll is finalised.
This provides time to:
- collect the information;
- verify the supporting documentation;
- calculate payroll;
- review the results;
- correct potential errors; and
- process salary payments.
A well-organised payroll calendar significantly reduces last-minute corrections.
Public Holidays Can Affect Payroll Deadlines
Turkish public holidays can affect statutory filing and payment deadlines.
In some cases, deadlines may move to the next working day or the authorities may announce a specific extension.
Employers should therefore avoid relying solely on a fixed annual spreadsheet.
The official calendar and announcements from the Turkish Revenue Administration and SGK should be monitored throughout the year.
Payroll Corrections
Mistakes can occasionally occur after payroll declarations have already been submitted.
Examples include:
- incorrect salary amounts;
- missing bonuses;
- incorrect working days;
- incorrect SGK information;
- omitted employees; or
- incorrect tax calculations.
Depending on the situation, a correction declaration may be required.
Corrections should be processed promptly because late or inaccurate reporting may result in additional tax, social security liabilities, penalties or interest.
Why Payroll Deadlines Matter for Foreign Companies
International companies often manage Turkish payroll from another country.
This can create additional operational challenges because HR information may need to pass through several teams before reaching the Turkish payroll provider.
For example:
Local Manager → International HR → Finance → Turkish Payroll Provider → Payroll Calculation → Approval → Salary Payment
If information is provided late at the beginning of this chain, the entire payroll process can be delayed.
Foreign employers should therefore establish clear responsibilities and deadlines for Turkish payroll.
Recommended Payroll Process for Foreign Employers
A reliable payroll process should include:
1. Payroll cut-off
Set a monthly internal deadline for payroll variables.
2. Data collection
Collect salary changes, leave, bonuses, commissions and employee movements.
3. Payroll calculation
Prepare gross-to-net calculations and employer costs.
4. Payroll review
Verify exceptional items and compare payroll with the previous month.
5. Approval
Obtain internal approval before payments are released.
6. Salary payment
Transfer employee net salaries.
7. Statutory declarations
Complete the required Turkish payroll declarations.
8. Tax and SGK payments
Ensure statutory liabilities are paid within the applicable deadlines.
9. Payroll archiving
Maintain payroll records and supporting documentation.
Payroll Compliance in Turkey
Payroll compliance requires coordination between HR, accounting, finance and payroll specialists.
Missing a payroll deadline can result in:
- administrative penalties;
- late payment interest;
- SGK compliance issues;
- incorrect employee tax records;
- loss of certain incentives; and
- additional administrative work.
For this reason, foreign employers should treat payroll as a continuous monthly compliance process rather than simply a salary calculation.
Understanding the payroll calendar in Turkey is essential for companies employing Turkish or foreign employees in the country.
The payroll cycle begins with the collection of monthly employee information and continues through salary calculation, payslip preparation, salary payment, statutory reporting and the payment of taxes and social security contributions.
For a standard payroll, one of the main deadlines to remember is the 26th of the following month for the MPHB, while standard SGK contributions are generally payable by the end of the following month.
However, public holidays, official extensions and individual circumstances may affect specific deadlines.
Establishing internal cut-off dates well before statutory deadlines is therefore one of the most effective ways to maintain compliant and efficient payroll operations in Turkey.
Set Idari Destek supports international companies with payroll management in Turkey, including monthly payroll calculations, payslips, statutory reporting, SGK processes and payroll compliance.