The figure discussed in a job interview is usually the net salary; what appears on the payslip, and what the employer pays, is the gross salary plus the employer's contributions on top. The gap is bigger than most people think. In this article we explain net and gross salary calculation in Turkey and the total cost to the employer, using 2026 figures.
Gross salary vs net salary
- Gross salary: the pay written in the contract, before deductions.
- Net salary: the amount paid into the employee's account after deductions.
- Employer cost: the gross salary plus the employer's social security (SGK) and unemployment contributions.
Deductions from the employee's salary
| Deduction | Rate | Calculated on |
|---|---|---|
| Social security, employee share | 14% | Gross salary |
| Unemployment insurance, employee share | 1% | Gross salary |
| Income tax | 15% – 40% (brackets) | Gross − SSI − unemployment |
| Stamp duty | 0.759% | Gross salary |
The part equal to the minimum wage is exempt from income tax and stamp duty. So for salaries above the minimum wage, tax is effectively charged only on the part above it.
2026 income tax brackets (employees)
Income tax is based on the cumulative taxable income for the year:
| Cumulative taxable income | Rate |
|---|---|
| Up to 190,000 TL | 15% |
| Up to 400,000 TL | 20% |
| Up to 1,500,000 TL | 27% |
| Up to 5,300,000 TL | 35% |
| Above 5,300,000 TL | 40% |
That is why someone on the same gross salary sees their net pay fall during the year: as taxable income builds up, they move into a higher bracket. On a gross salary of 50,000 TL a month, for example, cumulative taxable income passes 190,000 TL in May and the 20% bracket starts.
Example 1: gross to net (50,000 TL gross, January)
- Social security, employee share: 50,000 × 14% = 7,000 TL
- Unemployment, employee share: 50,000 × 1% = 500 TL
- Income tax base: 50,000 − 7,500 = 42,500 TL → 15% = 6,375 TL; minus the minimum wage exemption (4,211.33 TL) = 2,163.67 TL
- Stamp duty: 50,000 × 0.759% = 379.50 TL; minus the exemption (250.70 TL) = 128.80 TL
- Net salary: 40,207.53 TL
Example 2: net to gross and the employer cost
Employers usually ask the opposite question: "I will pay 50,000 TL net; what will it cost me in total?" Because net-to-gross works backwards, it takes trial and error, and a calculator does that for you. For November 2026, with the 2-point incentive and minimum wage support:
| Item | Amount |
|---|---|
| Net salary (take-home) | 50,000.00 TL |
| Gross salary | 72,007.64 TL |
| Employer SSI share (19.75%) | 14,221.51 TL |
| Employer unemployment share (2%) | 1,440.15 TL |
| Minimum wage support | − 1,269.90 TL |
| Total employer cost | 86,399.40 TL |
In other words, the employer pays about 173 TL for every 100 TL the employee takes home. In November cumulative taxable income is high, so income tax is charged at the 27% bracket; the same net salary costs less gross in January.
Employer contributions and incentives
- Employer SSI share: 21.75%. With the 5-point incentive it falls to 16.75% for eligible employers, and with the 2-point incentive (sectors other than manufacturing) to 19.75%.
- Employer unemployment share: 2%.
- Minimum wage support: in 2026, eligible employers receive 1,269.90 TL per employee per month (42.33 TL a day), deducted from later social security payments.
An employee on the minimum wage costs the employer 40,874.63 TL without incentives, 40,214.03 TL with the 2-point incentive and 39,223.13 TL with the 5-point incentive (excluding minimum wage support).
How is overtime calculated?
The hourly wage is the monthly gross salary divided by 225.
- Overtime (work beyond 45 hours a week): the hourly wage plus 50% (×1.5)
- Extra time (when the agreed week is under 45 hours, the hours up to 45): plus 25% (×1.25)
- Work on the weekly rest day: 1.5 times the daily wage
- Work on public holidays: one extra day's pay
Example: on a gross salary of 50,000 TL the hourly wage is 222.22 TL, so one hour of overtime is 333.33 TL gross.
A free salary calculator: Nova Salary
Instead of doing these sums by hand every month, use our free Nova Salary calculator:
- Net-to-gross and gross-to-net calculation
- Total employer cost, 2- and 5-point incentives, minimum wage support
- Overtime, extra time, rest day and public holiday work
- Tax bracket by month and a 12-month payroll table
- 2026 figures; no sign-up, no ads, works offline too
If you also want to keep customer accounts, invoices and cash in order alongside payroll, take a look at our Online Accounting software. New to bookkeeping? Our bookkeeping guide is a good place to start.
Frequently asked questions
Why is the net salary different every month? Income tax is based on cumulative taxable income, so higher brackets kick in as the year goes on and net pay falls. Employers often keep the net salary fixed and raise the gross instead.
Is income tax deducted from the minimum wage? No. The minimum wage is exempt from income tax and stamp duty; only social security and unemployment contributions are deducted.
This article is for general information only; for special cases such as disability allowance, retired employees (SGDP) or missing days, ask your accountant.
