7 Tax Items to Watch When Calculating Salary
What deductions apply from gross to net salary? Detailed explanation of social security, income tax, stamp duty, and other items.
Gross to Net: Overview
In Turkey, there is a significant gap between an employee's gross salary and net take-home pay due to mandatory deductions. In 2026, the gross-net difference for a typical white-collar worker ranges from 30-38%. Deductions fall into two main groups: social security contributions (SGK) and taxes (income tax + stamp duty). On the employer side, there are additional SGK employer contributions and unemployment insurance employer share. Total employer cost is approximately 1.7-1.9 times the employee's net salary.
1. Employee Social Security Contribution (14%)
The Social Security Institution employee premium is deducted at 14% of gross salary. This premium covers retirement, health insurance, and occupational accident protection. There is a ceiling on the salary subject to SGK contributions; amounts above this limit are not subject to premiums. It comprises sub-components: short-term insurance (2%), long-term insurance (9%), and general health insurance. SGK premiums are deducted from the income tax base.
2. Unemployment Insurance Employee Share (1%)
Unemployment insurance premium is deducted at 1% of gross salary from the employee. The employer share is 2%, state contribution is 1%. This fund provides salary support for a defined period if unemployed. To qualify for unemployment benefits, at least 600 days of contributions in the last 3 years and 120 consecutive working days are required. Unemployment insurance premiums are also deductible from the income tax base.
3. Income Tax (Cumulative Progressive)
Income tax is calculated on the base remaining after SGK and unemployment insurance deductions. 2026 brackets: 0-110,000 TL at 15%, 110,000-230,000 TL at 20%, 230,000-580,000 TL at 27%, 580,000-3,000,000 TL at 35%, above 3,000,000 TL at 40%. Tax is cumulative — as the base accumulates during the year, higher brackets apply. Net pay is typically highest in January and lowest in December. The minimum living allowance was replaced by minimum wage exemption in 2022.
4. Stamp Duty (0.759%)
Stamp duty on payroll is 0.759% of gross salary. Though seemingly small, it accumulates to a meaningful annual total. For example, on a 50,000 TL gross salary, monthly stamp duty is 379.50 TL, annually 4,554 TL. The portion up to minimum wage is exempt from stamp duty (2026). Stamp duty is not deductible from income tax base — it is calculated directly on gross.
5. Minimum Wage Exemption
Since 2022, income up to the minimum wage is exempt from income tax and stamp duty. In 2026, the gross minimum wage amount is tax-free. This exemption applies to all wage earners, not just minimum wage workers. In practice, every employee pays no tax on the portion up to minimum wage; only the excess is taxed. This arrangement has significantly increased net pay especially for low and middle-income groups.
6-7. Employer Contributions and Incentives
Employer SGK share is 15.5% (short-term 2% + long-term 11% + GHI 7.5% minus 5-point discount), employer unemployment insurance is 2%. Total employer cost adds 22.5% to gross salary. However, various incentives can reduce this: 5510/81-ı 5-point discount (all employers), Law 7103 additional employment incentive, 7252 normalization support, youth/female/disabled employment incentives. With the right incentive combination, employer cost can decrease by up to 30%.