Using the services of an accounting firm for Turkish payroll is effective and reliable, and ensures compliance with local regulations. Our specialists can provide payroll services in Turkey if you have a company there.
| Short Facts | |
| Payroll definition | A process through which the salaries of employees are calculated and distributed. Our Turkish payroll specialist can provide assistance and dedicated services for your firm. |
| Frequency of payroll in Turkey | Monthly |
| Employer social security contributions | 22.50% |
| Employee social security contributions | 15% |
| Minimum wage | Around TRY 22,100/month |
| Working hours | Standard workweek of 45 hours |
| Overtime regulations | No more than 270 hours per year |
| Benefits | – private healthcare, – meal vouchers in many companies, – training, – retirement benefits, etc. |
| Mandatory leaves/ days off | 20 days/year after working in the company for at least 5 years, plus public holidays |
| Paid leaves | 16 weeks paid maternity leave or 18 weeks for multiple births, 5 days paternity paid leave |
| Regulations | Turkish Labor Code |
| Termination notice period | From 2 to 6 weeks |
| Compensation | Known as severance pay – 30 days’ gross salary for each year in the company |
| Unemployment benefits | After having a work contract for the last 120 days before the termination of the job/work agreement |
| Working with our accountants in Turkey | For complete payroll services at affordable prices |
What is payroll?
A specific process through which the salaries are calculated and distributed in the firm. This procedure is performed by a payroll specialist at our firm in Turkey.
How is payroll done in Turkey?
- accounting specialists can handle payroll in Turkey. They have access to the list of employees and their remuneration;
- before paying the salaries, the taxes to be paid are calculated;
- accountants use a special program to calculate salaries. First of all, the company determines how this payment is made: monthly, bimonthly, or weekly;
- standard payroll execution is approved by the company management;
- the actual payment of salaries follows, after the taxes have been calculated, maternity leave, where applicable, benefits, etc.
NOTE: Our payroll specialists in Turkey comply with Turkish Labor Law and applicable regulations.
This infographic can be helpful when looking for payroll services in Turkey:
What are the key features of payroll in Turkey?
Includes:
- gross wage,
- social security contributions,
- income tax withholding,
- unemployment insurance contributions,
- net salary after all taxes are calculated and paid,
- stamp duty in some cases, etc.
What are the payroll taxes in Turkey?
Paid by employees:
- 1% for unemployment insurance,
- 14% for social security contributions.
Paid by employer:
- 2% for unemployment contribution,
- 21.75% for social security contribution.
REMARK! The income tax rate ranges between 15% and 40%, depending on the annual taxable salary.
What information is needed for payroll in Turkey?
- work contracts,
- wage payment records,
- payroll slips,
- tax & social security filings, etc.
What happens during tax inspections? Can payroll be affected?
All companies in Turkey must align with the payroll legislation and register all employees with the local authorities. Tax inspectors analyze all staff documents/employment contracts to determine whether the firms comply with payroll obligations.
NOTE! Severe penalties are imposed on non-compliant companies with the payroll regulations in Turkey.
Are there any salary benefits in Turkey?
Yes, there is no income tax for minimum wage in Turkey.
Is severance pay available in Turkey?
Yes, for employees who have worked at least 1 year at a firm in Turkey.
How is the salary paid in Turkey?
Most companies make salary payments once per month.
What are the advantages of outsourced payroll services in Turkey?
- lower risks in employment-related procedures,
- periodical payroll updates in accordance with the law modifications,
- accurate calculations & filings,
- correct employment records in case of tax inspections,
- data security,
- lower costs than an in-house department, etc.
What is the payroll cycle in Turkey?
Monthly.
What is the legislation for employment & payroll in Turkey?
Turkish Labor Law No. 4857.
Who oversees payroll and related activities in Turkey?
The Ministry of Labor and Social Security and the Social Security Institution in Turkey.
What is the minimum wage in Turkey?
TRY 28, 075.
Would you like more details about the payroll services we offer in Turkey? You may contact our Turkish firm and also discover our personalized offers. Our agents can also help you with starting a company in Turkey.